22.11.05

San Fran GP lost.....

The San Fran GP has seen its last battle up Filmore Street. I will write more on the topic of racing in North America at a later date....

"San Francisco GP Cancelled", cyclingnews.com Nov 21/05Organisers of the San Francisco GP have announced that the 2006 event, scheduled for September 10, will not go ahead.

In an statement released today, the promoting company San Francisco Cycling, LLC said it had been, "unable to resolve issues surrounding billing amounts and procedures for city services related to the annual event."

The cancellation follows scrutiny of the race by San Francisco city council last week, that involved city councilors accusing San Francisco Cycling, LLC of having obtained a licence for the 2005 event without having paid its bills from 2004. San Francisco Cycling director David Chauner said that the political scrutiny that the race was subjected to made it difficult to secure the sponsorship necessary to keep the race viable.

"There is considerable uncertainty regarding the amounts we will be billed after each year's race, making it impossible to accurately forecast budgets or question charges beforehand," said Chauner. "On top of that, the periodic, emotionally charged Board of Supervisors' debates over the value of the event make potential sponsors very nervous. Few companies will sponsor a politically charged event and, when sponsors back out or can't be replaced, we have to cut important elements of the race, like eliminating the very popular women's event this year."

"No-win situation" for San Fran GP, cyclingnews.com Nov 22/05
Following on from the announcement that the 2006 San Francisco Grand Prix will be cancelled due to ongoing conflict with the city relating to unpaid bills, race director David Chauner described the current environment as a "no-win situation".

"Despite the overwhelming popularity of the San Francisco Grand Prix, we have had to evaluate its financial viability in terms of the market conditions, potential for revenue and cost of running a world class race in order to determine if it makes sense to continue let alone ever turn a profit. Sadly it’s a no-win situation and we simply cannot go forward. Few companies will sponsor a politically-charged event."

The city's Board of Supervisors said San Francisco Cycling LLC should not have not have been issued a permit for the 2006 event, originally scheduled for September 10, when policing bills totalling $89,924 were still yet to be paid from this year's race. San Francisco Cycling and the office of Mayor Gavin Newsom have argued they were only mailed the amount outstanding from the city's Department of Public Works a day before their meeting with the board.

Said operations director Jerry Casale: "We were faxed the final and adjusted SFPD bill for $89,924 for the first time on November 10, 2005, just one working day prior to that meeting, all other city charges had been paid before we got our ISCOTT permit for the 2005 race, it wouldn't have been issued otherwise. And then they said we were late and purposely avoiding payment. That's simply not true."

"That [the event] is being flushed down the toilet so some politicians can make a political point," spokesman for the Mayor, Peter Ragone said to the San Francisco Chronicle.

However, supervisor Aaron Peskin said the event has been cancelled due to San Francisco Cycling's inability to pay monies owing to the city, colourfully describing the race organiser as "a bad actor that has repeatedly refused to pay its bills, or pay them on time." Peskin added that "San Francisco will be just as well off" with the Tour of California set to make its debut next year from February 19-26, 2006.

"The most outspoken supervisor calls this 'corporate welfare' and ignores the value the event brings to the city and to the many restaurants, hotels and businesses that benefit from race-related events," said Chauner.

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