Baltimore GP delays payment of money
Originally The Baltimore Grand Prix was to deposit 800 thousand dollars in an escrow account for construction to remove curbs, trees, and rebuild the parking lot.
But construction timetables have now changed.
And both the authority and the grand prix are letting escrow bucks slide for a week or so.
“The intent behind the escrow account was a performance assurance based on construction that's going to take place the construction hasn't taken place so from our point of view there was not a real need to get that money in the account the MSA was fine with that." Baltimore Grand Prix Spokesman Austin Crossley says.
Crossley says this isn't about not having the money; it's there, but why tie up money in escrow when it could be put to better use now?
And the stadium authority agrees and feels things are coming along nicely.
“The model is akin to a start up and they have a lot of expenses up front and the revenues come slightly later they've had delays that were beyond their control but looking at their cash flow projections we're confident they're going to be able to meet the scheduled payments." Maryland Stadium Authority Executive Director Michael Frenz says.
Frenz says the authority isn't taking a lot of risks with this because they will get their investment back.
And so will the city which has already invested more than seven million dollars in road improvements.
The grand prix says things are just starting to get rolling.
"We are on track where we thought we'd be regarding sponsorships in addition to the title we have hospitality sponsorships on all levels so we're having very positive conversations out there in the marketplace we feel good where we are.” Crossley says.
So what to watch for next?
The first escrow payment will be made November 2nd.
Next, the grand prix is in talks right now to find a major local sponsor for the race.
They hope to make that announcement sometime next month.
Also next month they plan to start selling tickets with prices starting at about 20 bucks. ABC News