Report: Baltimore Grand Prix collapsing under weight of debt?

Filed under: Motorsports, Government/Legal, Earnings/Financials

Maybe racing would stand on its own merits in an ideal utopia, but in the real world it has to make a business case for itself. So while the inaugural Baltimore Grand Prix may have been a success in the purest sense of the term - bringing IndyCar, ALMS and several other series to the city's harbor front - financial woes could relegate it to history even faster than it came about... or the race cars that made it the spectacle it was.

The trouble, it seems, is between Baltimore Racing Development, which organized the event this past Labor Day, and the city in which it was held. Apparently BRD failed to pay all that was required by the municipality, and now city officials are demanding it pay up or get out of town.

According to reports, organizers owe city coffers some $1.5 million for services rendered, taxes and other expenses. Combined with the estimated $1.8 million it owes third parties, the Baltimore Grand Prix is looking at a huge debt that could take years to pay off, but if it doesn't get the chance to hold the remaining four races for which it's contracted, that debt could prove insurmountable.

Baltimore Grand Prix collapsing under weight of debt? originally appeared on Autoblog on Thu, 10 Nov 2011 17:31:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2011/11/10/baltimore-grand-prix-collapsing-under-weight-of-debt/

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