Exclusive: With new five-year deal, COTA chairman says Formula 1 is far from 'F1 and done'

Why the wait?

October on our minds. 🤔 pic.twitter.com/PXFwWChKgw

— Circuit of The Americas (@COTA) April 21, 2022

Every year, Formula 1 receives roughly $25 million from Texas' Major Events Reimbursement Program, a taxpayer-funded initiative that helps bring big sporting events like 2017's Houston Super Bowl to the state.

According to Fort Worth Star-Telegram writer Mac Engel, however, the Major Events Reimbursements Program agrees to provide funding only "if Austin holds the only F1 race in the country."

And with a new Miami race debuting this year, past legal hiccups and the past ambiguous financial impact of the race, some COTA insiders worried that the global sport was 'F1 and Done' with the Austin track.

Epstein told Austonia that the state legislation was not involved in the latest agreement.

"There is no allocation from the state annual budget," Epstein said. "There is existing legislation in place that allows for tax dollars collected from out-of-state event attendees to be used to reimburse some event-related expenses. This legislation is not unique to F1 and is used to attract more than 100 events to our state each year."

Epstein said the delay was due to COVID delays rather than internal disputes.

"The timing was really a matter of 'papering' the agreement," Epstein said. " F1 management and legal teams were overwhelmed with COVID-related schedule shifting, earlier in the year."

Why is F1 committed to Austin?

BREAKING: The United States Grand Prix at @COTA remains on the calendar through to 2026! #USGP 🇺🇸 #F1pic.twitter.com/S85UDo9n8Z

— Formula 1 (@F1) February 18, 2022

Whether there were behind-the-curtains negotiations or not, Epstein said it's easy to see why F1 decided to ink the deal.

On multiple occasions, Epstein has asserted that the 2021 U.S. Grand Prix in October was the "largest sporting event in the world," and with an estimate of 400,000 people in attendance over the weekend, it was the biggest three-day race weekend in F1 history.

"The festive weekend has become a fan and competitors’ favorite destination event," Epstein told Austonia. "As the sport grows and tries new formats, they don’t want to lose what’s already working, and after last year, there was no way F1 could stop (nor did they want to stop) the momentum."

Epstein said the league would also hesitate to leave a track custom-built for them, complete with the necessary turns and elevation changes needed to highlight the prowess of F1's drivers and its signature open-wheeled vehicles.

And the event is a highlight for more than just its track, Epstein said.

"Austin is such a great host city, and an absolute highlight of the sport’s global tour," Epstein said. "With the campgrounds, the entertainment, and the themed villages, the grand prix at COTA takes on an unrivaled atmosphere. The COTA experience is much more like that of a historic, traditional Formula 1 track."

With past attractions, celebrity appearances and a carnival-like atmosphere—complete with the promise of luxury "car condos" and a rollercoaster-studded amusement park in the next few years—it seems like that atmosphere will be hard to beat for years to come.

The U.S. market: too crowded or a chance to grow?

The rumors are true… #LasVegasGP is officially in the cards! Huge thanks to @F1@LVCVA@LiveNation@GovSisolak@WynnLasVegas@MGMResortsIntl@CaesarsPalace and all of our partners. #LasVegas… it’s neon lights out, and away we go! #Vroompic.twitter.com/sHS4zLu3pF

— gregmaffei (@gregmaffei_) April 16, 2022

There's a new track in town—for the first time in over 30 years, a casino-side race in Las Vegas will join Miami and Austin as the third U.S. track in 2023.

But despite enjoying America's sole F1 presence for several years, Epstein doesn't view the two new events as competition.

"With a night race down the glamorous Vegas strip or a cosmopolitan spring race around the Hard Rock Stadium, Formula One is creating a diverse array of offerings," Epstein said. "Each event complements the other and offers vastly different experiences."

While Austin provides a star-studded, yet more accessible Austin-esque festival experience, Miami and Las Vegas will showcase the luxury side of the sport. And thanks to the success of Netflix F1 documentary series "Drive to Survive," the once-foreign sport is growing exponentially—and for F1 higher-ups, the previously untapped market is hard to ignore.

For Austin, that means thousands more are expected to keep making the U.S. Grand Prix weekend one of the biggest travel weekends of the year for Austin-Bergstrom International Airport and local businesses alike.

"With the Formula One audience skyrocketing in the United States, three events per year certainly won’t meet the demand," Epstein said. "And the event in Austin will continue to bring hundreds of millions of tourist dollars to our hotels, restaurants and shops."