THE CANADIAN PRESS
MONTREAL — The financial demands by F1 boss Bernie Ecclestone proved too steep for the three levels of government fighting to keep the Grand Prix in Montreal.
"We’ve placed our last financial card on the table," said Quebec’s economic development minister Raymond Bachand at a news conference on Sunday, confirming the cancellation of the 2009 Canadian F1.
"Unless (Ecclestone) changes his mind, it’s over."
Despite the collective effort, negotiations stalled when the F1 boss wouldn’t budge from his "excessive" demands.
"Mr. Ecclestone demanded annual fees that started at $31 million and went to $38 million by 2013, so $175 million in total," said Bachand.
"And he wanted a bank or government guarantee. He didn’t care who organized the race."
Formula One Administration Limited also wanted 100 per cent of the revenues linked to corporate boxes and advertising on the circuit.
Canada’s counter-offer fell short: the federal, provincial, and municipal government proposed $110 million over five years plus a cut of the annual profits — 75 per cent of the first $10 million and 25 per cent of the remaining funds.
"At that level, we were sure the Grand Prix would be profitable," said Bachand.
Premier Jean Charest said on Sunday during a campaign stop that while no effort was spared to save the race, it was simply too expensive.
"If we decide to invest public money in an event like the Grand Prix, it’s because it makes sense on an economic level," he said.
"It has to be profitable."
The Canadian Grand Prix was dropped from the 2009 schedule in October and three levels of government were left scrambling to get it back on the roster, even flying to London to meet F1 organizers personally.
Montreal’s restaurant and hotel industry pledged their support, along with prominent businesses like the Gillette Entertainment Group and the Cirque du Soleil.
But the demands of the F1 scared off potential promoters nervous about taking on the financial risk.
The event drew an estimated $100 million per year in revenues and economic spinoffs to the city and its loss comes as a blow to the city’s tourism industry.
Montreal mayor Gerald Tremblay announced plans for a fund to help lobby to bring other high-profile international events to the city and to help businesses hit hard by the loss.
Fans will also mourn its the F1’s disappearance.
"Bernie Ecclestone had no sentiment for anything else. Money counts for him. Money talks," said former F1 racer Bertrand Godin in an interview.
"I’m really sorry for car racing fans. It gave us a great thing. I will always remember (legendary Canadian F1 racer) Gilles Villeneuve winning in 1978, that’s one reason I joined this sport."
But Godin doesn’t blame the government.
"We had no time to build a good business proposition," he said.
"The government did their best."
Meanwhile, Bachand refused to shut the door completely on future races in the city.
"After 2009, there may be another round of negotiations," he said.
Ecclestone had previously committed in 2006 to keep the race in Montreal race through 2011.
The Montreal race was on the F1 schedule since 1967 and became one of sports most attended events, drawing over 300,000 spectators for three days of parties, events, and racing.
The Turkish Grand Prix was moved into Montreal’s June 5-7 dates.