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Taupo has only a 50-50 chance of hosting the A1GP after 2009, Taupo Motorsport Park shareholders have been told.
At their annual meeting yesterday, shareholders were told the internationally rated track was $6 million in debt and there was no assurance the "marquee" A1GP round would be held there in 2010.
It had previously been estimated the company owed $3 million. The track complex has hosted the A1GP and other motorsport events on land leased from Taupo District Council. Negotiations are continuing with A1GP organisers, but the company has no right of renewal when its three-year contract expires in January 2009.
Taupo Motorsport director David Steele told the meeting it was 50-50 whether the event would be held in Taupo in 2010. A decision was expected next year.
The $13 million track was built in 2006 in time to host the first A1GP race in January 2007. The event is estimated to be worth $20 million to the Taupo economy, attracting 70,000 spectators for three days in late January.
Mr Steele said the cost of travelling to the southern hemisphere for one round could be too much for teams. There was also a suggestion a planned track at Hampton Downs, near Huntly, could replace Taupo as an A1GP venue.
"It's a wonderful event putting Taupo on the world map, and the A1 people like coming down here but commercially it is better for them to go nearer Auckland where the sponsorship support is closer," Mr Steele said.
Acting chairman John Loughlin said Taupo Motorsport needed bigger crowds to generate more income.
"The A1GP is the marquee event for the company but it is everyday track hires that are our bread and butter that is the key to financial viability."
A range of events including Australian-based modified street cars, jet sprints and national race championships were being considered. Mr Loughlin said the financial position was "delicate".
Staff members were cleaning the public toilets after racedays to cut costs.
He said four factors contributed to the loss. A public share offer had not raised as much as the company had predicted and had cost $337,000; there was a $1.3 million 'blowout' - later funded by debt - to finish the final stage of the track in time for the A1GP; depreciation was $260,000, and increased interest rates added an extra $315,000 to loan repayments.
The biggest debt was a $5,957,000 term deposit loan from ANZ Bank.
"The failure of the IPO was a real disappointment and a lost opportunity," Mr Loughlin said.
"Our offer to the market did not inspire investors."
At their annual meeting yesterday, shareholders were told the internationally rated track was $6 million in debt and there was no assurance the "marquee" A1GP round would be held there in 2010.
It had previously been estimated the company owed $3 million. The track complex has hosted the A1GP and other motorsport events on land leased from Taupo District Council. Negotiations are continuing with A1GP organisers, but the company has no right of renewal when its three-year contract expires in January 2009.
Taupo Motorsport director David Steele told the meeting it was 50-50 whether the event would be held in Taupo in 2010. A decision was expected next year.
The $13 million track was built in 2006 in time to host the first A1GP race in January 2007. The event is estimated to be worth $20 million to the Taupo economy, attracting 70,000 spectators for three days in late January.
Mr Steele said the cost of travelling to the southern hemisphere for one round could be too much for teams. There was also a suggestion a planned track at Hampton Downs, near Huntly, could replace Taupo as an A1GP venue.
"It's a wonderful event putting Taupo on the world map, and the A1 people like coming down here but commercially it is better for them to go nearer Auckland where the sponsorship support is closer," Mr Steele said.
Acting chairman John Loughlin said Taupo Motorsport needed bigger crowds to generate more income.
"The A1GP is the marquee event for the company but it is everyday track hires that are our bread and butter that is the key to financial viability."
A range of events including Australian-based modified street cars, jet sprints and national race championships were being considered. Mr Loughlin said the financial position was "delicate".
Staff members were cleaning the public toilets after racedays to cut costs.
He said four factors contributed to the loss. A public share offer had not raised as much as the company had predicted and had cost $337,000; there was a $1.3 million 'blowout' - later funded by debt - to finish the final stage of the track in time for the A1GP; depreciation was $260,000, and increased interest rates added an extra $315,000 to loan repayments.
The biggest debt was a $5,957,000 term deposit loan from ANZ Bank.
"The failure of the IPO was a real disappointment and a lost opportunity," Mr Loughlin said.
"Our offer to the market did not inspire investors."
which was happening with some frequency too...
Some time ago a group of 
:superGav: