Faster1 wrote:Here's one for posterity DE,, maybe (it's general, not particularly for Motegi as Japan has far more pressing problems than a gp race)
When an/any entire round is canceled, who pockets money and who loses money? I would imagine all involved has an entire fiscal year planned out,,, some to the penny??
On the surface:
you have a track rented and paid for?,,, track employees do or don't get paid?
moneys allocated to travel for everyone except the gp teams themselves, refunded? lost?
Advertisers, both local and viral, prepaid? refunded?
Teams; They budget for 'x" and now,,, no wear and tear,, no data, stronger engines for the later races?,, sponsors?
Bridgestone - Did they pre-manufacturer the tires,, now left overs at the end of the season?
Fans - fully re-reimbursed for tickets?
Who is insured and who is financially out-of luck?
Good question. The financial hit MotoMatters takes is modest, but then so is our income ...
As for the rest: It depends on the cause of the cancellation. Contracts are hugely complex, with multiple layers of insurance against the round not taking place. It can end up being more expensive to cancel than to run it at a loss.
Dorna bears the biggest risk, as their TV contracts are signed a long way ahead of time, and the TV companies are not happy when a race gets canceled. There will be large penalty clauses in these cases. The same is the case with the series sponsors such as Tissot, BMW, etc.
Fans get their money back on tickets, though hotel rooms and flights are usually a write off (very common problem for journalists too). Teams no problem, as their travel is largely paid for by Dorna.
Tracks make money on a race weekend (most ofthem anyway), so they will lose out, but the bigger loss is usually compensating Dorna.
Bridgestone can usually use the tires at a later data and at a different track.
The current situation for Motegi is different though. This is exactly the kind of contingency that Dorna will have insurance for, a rare but devastating event.