Kate Walker interviews circuit founder and chairman Bobby Epstein to find out how the Circuit of the Americas plans to secure its future
One of the sad truths of Formula One is that hosting a race can be a very costly experience. For a circuit to have a hope of turning a profit, it needs to be open to the possibility of a range of uses far from the world of motorsport: see Suzuka's weddings, Silverstone's conference centre, and Singapore's entertainment package as examples.
One track thinking outside the box when it comes to balancing the books is Austin's Circuit of the Americas, which is currently exploring new avenues of income. In an exclusive interview with ESPN, COTA founder and chairman Bobby Epstein explains that the Circuit of the Americas is keeping an open mind when it comes to making the most of the facility.
"I think we really have to view this as an entertainment destination and build out a masterplan of the whole 1,400 acres," Epstein says. "Right now, the track is on about 380 of those acres. Once you realise that your assets are, to some extent, parking lots and concession stands and restrooms, you want to build that out in supporting any other amenities, whether that's a hotel or driving club or car condos. I think those things all lend themselves to being a part of this facility.
Capitalising on unused assets is but one part of the plan. On the day of our interview Epstein was due to have talks about COTA as a festival site, he revealed when asked about using the facility to host the occasional festival.
"That's a good question, very relevant to why I'm not even at the office this morning having this call," he replies. "Because that's been this morning's topic. We have a lot of festivals [in Austin]. They work here because it's a giant, vibrant, outdoor city. But the city infrastructure itself - it's tough to find places to do them. I think we'll see two new festivals actually relocate, or two festivals will relocate from elsewhere to COTA.
"We had the Willie Nelson 4th of July Picnic this year, which was 12 hours of Willie and his friends," Epstein continues. "They had about 40 different artists and it was a great success, it actually sold out. So, yes, we've've got the ability. Elton John is on after Formula One this year. We have a concert hillside that can hold up to 70,000 people, so we are working on some events for there right now."
The presence of COTA is beginning to attract related businesses to the area, Epstein reveals. "Just last month, a wheel production company opened up across the street from us," he says. "It's a significant site, and these are guys that have reinvented the wheel! I think that's got to be a positive for the technology of motorsports. But we've seen three businesses in the area that relate to manufacturers, more specifically towards motorsports.
"As far as the development and the advancement of motorsports technology goes," Epstein continues, "our track is booked about a year and a half out for various uses and amongst those, over 30% of them are manufacturer events - in many cases new product testing."
Given COTA's multiple uses - and associated multiple challenges - what about the facility he helped found gives Epstein the greatest satisfaction?
"The biggest satisfaction is easier when they enter," he explains, "because the biggest satisfaction is just to see people, communities coming together, enjoying themselves, just to see people smile and have a good time. Seeing that, and the knowledge of the large impact that you've made on the community just in terms of bringing more than $2.5 billion of economic impact to the region. Dollars that don't go to us, but go to people that really work, that are working very hard for it every day. That's a meaningful satisfaction for all of us that were involved."
And what has been the biggest challenge? "The list is pretty long!" he jokes. "Money challenges are always part of any big business like this, so you can list that. Unexpected surprises and having to adapt to them are part of any business, but I think that in this business they are greater than in others. They're greater than in most."