220 MPH in Texas Formula One’s growing global fan base, estimated at perhaps half a billion worldwide and expanding in places such as India and Abu Dhabi, includes one notable unexploited market, the United States. That situation will change on Nov. 18, 2012, as Austin, Texas, serves as host to the F1 United States Grand Prix at a new circuit, now under construction. The state has committed to spend $250 million in promotional fees to ensure an F1 race in Austin every year for the next decade. Developers, led by San Antonio billionaire Red McCombs, are spending roughly $200 million to build the track on a 1,000-acre site, which will be called “Circuit of the Americas,”
Indianapolis 500,” said Jeff Hahn, who represents Circuit of the
seating 120,000 spectators. Also in the development group are
Americas. As the second-to-last race in the 2012 racing season,
Tavo Hellmund, a former driver, and Bobby Epstein, who owns
the results in Austin could determine a champion team or driver.
an Austin-based private-investment company, Prophet Capital Management Ltd. Austin, a budding haven for digital entrepreneurs, will be
Hahn, Austin has ambitions to position itself worldwide as an
the latest venue for F1 after earlier U.S. Grand Prix races in
international city that can attract entrepreneurs from the Far
places such as Watkins Glen, N.Y., Long Beach, Calif., and India-
East, as well as students seeking college degrees in engineering
napolis eventually were discontinued due to insufficient interest
and software design.
by fans and sponsors. The new track is the first in the United States to be purpose-built for an F1 race. “F1 isn’t as well known in this country as Nascar or the
Courtesy Circuit of the Americas
The track will be 3.4 miles long and contain 20 turns, left and right over an elevation change of 133 feet. According to
tion are keen. He can look at a shabby shopping center and see its potential. Utterly fastidious, appearances are very important to him. As a team owner he insisted on clean uniforms, spit-and-polish order in the garages and a parade gloss for the cars on race day. Standing 5 feet 3 inches tall and crowned with a white Beatle haircut, he still manages to stand out. Ecclestone’s talent for trading cars and real estate stems in part from a lightning-quick ability to appraise value. He can glance at a few dozen vehicles, price each one and add the total in his head. Then, Ecclestone well might instantly bid for the lot, according to Susan Watkins, unnerving the seller. A hustler in his youth, he excelled at chemin-de-fer, blackjack, greyhounds, gin rummy — which provided capital to buy property and cars. When Ecclestone was young, “everything was about making money,” Watkins said. “He sold pens, cakes, hundreds of things. He’s a property addict. If you look at his business interests, they’re like a bowl of chop suey. He’s always moving currencies around. I don’t think anybody really knows his net worth, not even Bernie.” Later, she said, “he found something he loved, racing, and a way to make money at it.” Shortly after the death of his friend Rindt in 1970, Ecclestone wound down his used-car business. He and Rindt had discussed buying the Brabham team, Motor Racing Develop-
Briefings on Talent & Leadership
If the U.S. Grand Prix takes off in popularity, Austin could gain a very sexy entertainment asset to add to its already lively music scene.
ments Ltd., together. Instead, Ecclestone alone offered to buy the team “for the value of the assets,” according to Watkins’s biography. Ron Tauranac, who owned the team, having bought it from the original owner, the champion racer Jack Brabham, thought that meant a price tag of £130,000, according to a valuation of the assets. But, Ecclestone told his biographer, “that was Ron’s valuation.” Tauranac sent documents supporting his valuation, to which Ecclestone responded with a bid of £100,000. Tauranac reluctantly agreed. Before the deal closed, another buyer approached Tauranac with a higher offer — but he felt obligated to sell to Ecclestone, even though he had anticipated getting more. Shortly afterward, Tauranac, who had expected to remain in management of the factory and team, was let go. A stickler for appearances, Ecclestone immediately ordered the factory to be made spotless and switched Brabham’s color to white from green. He kept salaries low and looked for ways to cut expenses, building a wind tunnel out of used industrial parts to save on the expense of leasing one. He spruced up operations, dressing his staff in spiffy new outfits, each day of the week its own color. For himself: razor-sharp pressed white shirts and dark slacks. Likewise, his moneymaking instincts were aroused. “Bernie quickly realized his fellow team owners loved the
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