Austria Secures Grand Prix Deal Extension

Austria's Formula One Grand Prix has been confirmed for another five years after local authorities agreed to cover the costs at the Spielberg circuit.

The province of Styria said it had signed a contract with Formula One supremo Bernie Ecclestone to 2006. The deal was a relief for Austrians as their venue had been considered a likely candidate to be dropped when Russia's new circuit is completed in 2003.

Triple World Champion Niki Lauda, now Jaguar's team principal, helped the Austrian state and Styria negotiate the contract.

"What helped is that the Austrians have themselves taken on the risk of staging the Grand Prix," he told ORF television. "What used to happen in the past in motor racing is that one rented it out and took on the risk of spectators, but that's now been changed - we Austrians are going to stage the Grand Prix and therefore we alone are responsible for it."

Styria will pay Ecclestone 10.9 million Euros ($9.72 million) per Grand Prix, will pay the drivers to race and cover the costs of organising the event. In return, the province will receive the revenue from ticket sales and a sum from the Austrian state, which will pay for the organisation of the race.

"It is the absolute number one sport event of the year for Austria so we're very pleased to be able to bind this event to Austria for several more years," Gerhard Hirschmann, in charge of sports affairs for Styria, said on the state's website. "The main advantage is that we ourselves can sell the Grand Prix. We can do a lot of advertising with it."

Lauda, the last Austrian driver to win at home, said the Grand Prix was always special.

"The Austrian Grand Prix, in comparison to all the others, is simply different. The cows are running around all over the place, there's a completely different rhythm, way of life. No other Grand Prix is staged in such an easy-going, cosy way that is typical of Austria."