Australian Grand Prix Makes Substantial Loss for 2014 Event

Australian government officials have revealed the 2014 Australian Grand Prix posted a record A$59.97 million (£34m/US$54.6m) loss.

The officials account the soaring costs and declining revenue for the substantial loss.

The loss, herbal subsidised by taxpayers in Victoria, the host state of the Melbourne Formula One race, outstrips last year’s deficit of A$50.7 million ($46.2m) by over 18 percent.

Sales revenue was down A$2 million while expenditure was up A$7.5 million, Victoria’s Major Events minister Louise Asher told reporters.

The race, which has traditionally opened the F1 season, has recorded A$50 million-plus losses for a number of years, sparking a backlash from local critics who see it as a waste of public money.

The controversy was brushed aside last month, however, when the state’s Liberal-led government inked a new five-year deal with Formula One management to keep the race in Melbourne until 2020.

Local politicians from both major parties have long justified the costs on the claimed economic impact and branding effect the race has for the state.

“The Formula 1 Australian Grand Prix alone generates between 351 and 411 full-time equivalent jobs and up to A$39 million in economic benefits as well as up to A$35 million in media or advertising-equivalent,” a statement released by Asher’s office said.

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