Bread, Circuses, Racecars
Eszter at Crooked Timber notes that the Hungarian government has decided to drop $4 million to sponsor a Formula One racer. She writes: "If this happened in a country with adequate social services and few people living in poverty then perhaps one could contemplate its legitimacy. But in a country with as many social problems as Hungary, I find it hard to swallow."
Commenter Dan Simon adds a perceptive postscript:
While I personally don?t care for the idea of $4 million in government money being spent on a Formula 1 team, I take some small consolation in the fact that lots of ordinary Hungarians of little means will probably get some enjoyment out of it. If instead the government had blown $4 million on, say, a Rothko for the Hungarian national art museum, how many low-income Hungarians would have been likely to get a big thrill out of it?and how many Crooked Timber collectivists would have complained?
Editor's Note: As of February 29, 2024, commenting privileges on reason.com posts are limited to Reason Plus subscribers. Past commenters are grandfathered in for a temporary period. Subscribe here to preserve your ability to comment. Your Reason Plus subscription also gives you an ad-free version of reason.com, along with full access to the digital edition and archives of Reason magazine. We request that comments be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of reason.com or Reason Foundation. We reserve the right to delete any comment and ban commenters for any reason at any time. Comments may only be edited within 5 minutes of posting. Report abuses.
Please
to post comments
As one other commenter in that thread mentioned, Hungarians do like their Formula One.
I also think Eszter is being disingenuous in her responses to Dan Simon--Hungarians seeing a nationally-sponsored F1 team is pretty much equivalent to Hungarians seeing a nationally sponsored painting, though they can see both Formula One and paintings already.
Neither materially benefits the average Hungarian's life, so if you're prepared to argue for nonmaterial benefits, you have to be prepared for the inevitable arguments about when to support this as opposed to that.
Simpler not to do it.
I'm amused that people there are amused that Hungary has a Minister of Sport. Most European governments have them, and frequently the Minister is one of both Culture and Sport, further damaging Eszter's case.
Ties in to the "Why They Hate Us" thread, I suppose. I am not sure which agency of the federal government COULD sponser a race-car (some turf wars over that) but I suppose the NEA would be a candidate. If one DID there would be a firestorm...front page ar NYT. But a musical about a serial killer?
If I'm not mistaken, there's a US Army-sponsored NASCAR racecar.
Jon H,
I believe it's the Marines that sponsor the Nascar ride.
Otherwise;
Good for Minardi ! They could really use the cash.
$4 mil. is next to nothing in the world of F1 considering Ferrari has an annual budget of between $220 - $250 Mil. per year to race 2 cars.
Hopefully the extra cash infusion will allow them at least a podium spot sometime in the coming year.
Huh? The military-- why didn't I think of that?
I suppose it wouldn't be too controversial, either-- recruiting device. Maybe that is what the Hungarian government could have done?
Actually, it was the U.S. Army: They sponsored Jerry Nadeau's #01 ride last year.
$4 million USD is chump change in F1. The biggest budgets belong to Ferrari, Williams-BMW, McLaren-Mercedes and Toyota, and they spend in the neighbourhood of $400 million USD on chassis and engine development per year.
Of the 17 or so races per year, I believe all but one benefit from government subsidies. The rights fees to host races are quite high, and the promotors usually only get the gate to cover expenses, which is not even close to being enough.
Furthermore, governments have gone to greater lengths than the Hungarian government has done to support F1 activities. The best known, at least to me, were the French government's support of the late French Ligier team: Government-owned tobacco (Gitanes), national lottery (LOTO), fuel and lubracants (elf), and engines (Renault) kept Guy Ligier's team on the grid with predictable results: The Ligier team spent much of its time at the back of the grid. Apparently, Guy Ligier was quite close to Francois Mitterand.
Minardi hasn't always gotten government money to go racing. Just last year, Justin Wilson financed his ride with the Faenza-based team by selling shares in himself:
http://www.investinwilson.com
Justin Wilson? The Cajun Chef from PBS in the 1980s? Is he still around? Is it safe for him to be driving racecars?
Hm.
Anyhow, lest we forget, the US Postal Service sponsors a very successful bicycle racing team. You know, Lance Armstrong et al.
I'm not sure what the best part is. Is it that long-distance road bike racing isn't exactly the most popular spectator sport in the US? Is it that the only event they get mass exposure from takes place overseas? Or is it that although they're the rare government agency that can profit and benefit from marketing, they only sell their product domestically?
Anyway.
If this happened in a country with adequate social services and few people living in poverty then perhaps one could contemplate its legitimacy. But in a country with as many social problems as Hung-- whoops! I mean the United States -- I find it hard to swallow.
Funny how that formualtion works pretty much no matter what country you insert, innit?
The air force reserve sponsors a rally car:
http://www.afreserve.com/racing/prorally_carspecs.asp
And funny enough, it seems someone is selling it:
http://www.rallyclassified.com/detail.php?cat=19&de=724
I'm sponsoring a go-cart race down Camelback Mountain in Phoenix this summer to benefit the Future Paraplegics of America. Anyone who might know how to scare up some sponsorship money, could you please email me and let me know how you do it?
I am in Development, though not in CA, a good start would be to buy a book of charitable foundations/individuals/trusts/corporations/etc. They should have one at Borders or any other bookstore (there are much more expensive books out there-$4-500) . In it, you will find who will give to what cause, in what amount, when they make their decisions, to which states, etc. You will then want to tailor a letter to the foundation based upon what you find (somewhat like writing an essay for a professor- if you know what they like you will probably do better). Ask for a reasonable amount, what it will do, blah blah blah. You might even find examples of grant writing or books on the subject. Also, you might want to look at groups that focus on paraplegics. Look at their sponsors and then try and go after them for smaller amounts. Contact local businesses (you can use the yellow pages or go to the library and hopefully they have a business directory that lists the president and other members) and go right for the president. Make your pitch and move on. Don't expect to get more than 1-5% of the people contacted to give money. Good luck!
Wow-- this list is starting to get long! Maybe we need a Department of Sport?
First, off, $4 million won't go very far in solving Hungry's problems. It's amazing how quickly that money could be spent on some social program. So if the comparison is strictly F1 vs. social programs, it's a bit of a wash.
But if $4 mill don't go far in F1, isn't it a waste of money to even try? It's not likely Hungry will be able to field a competitive team on only $4, so isn't it just money down the shit hole?
As someone noted, $4M is chump change for an F1 team. My first thought when reading that is "boy, I bet there are a lot of other inspiring things people could do with $4M".
It's worth thinking. If I had to disburse $4M in forints, I would look to add more criteria to "[are they] likely to get a big thrill out of it". I'd probably try to think in terms of inspiration, which is probably trickier to achieve. You're very lucky if you can inspire people, and even more so if they're motivated.
I'm not saying that thrills don't have some intrinsic value.
To Jean Bart:
I know Renault and elf are now private, but they weren't during the time that Ligier operated as a F1 team, and Ligier's friendship with Mitterand was crucial to his team's appearance on F1 grids.
The Mitterand government felt that it was important enough to have a French presence in F1 that government-owned businesses almost exclusively financed the team with his support. I recall the precious ad-space behind the rear wing carried the phrase "Fabriqu? en France" instead of the typical advertisement.
To Howard Owens:
To be clear, the Hungarian government is not fielding a team, but paying a F1 team (Minardi) for a Hungarian (Zsolt Baumgartner) to race for them next year. That's how some teams get a portion of their budget to race: well-connected drivers paying for their ride.
The team is not expected to be very competitive next year, so from that stand point, it is a waste. On the other hand, Zsolt's appearance on the grid will attract a certain amount of curiosity, like Jamaican bobsledders. Also, F1 markets itself as the most hi-tech sporting endeavor in the world-- with a dose of glamour thrown in. I suppose this element is what the Hungarian government wants to be associated with. Plus, having a Hungarian driver involved may help keep the Hungarian GP on the F1 schedule, as many countries previously not associated with F1 racing, such as Bahrain, Turkey, China, Russia, and India, are clamoring to host a grand prix weekend. With T.V. viewing figures around 300 million per race, hosting a F1 weekend is the next best thing to hosting a World Cup/Olympiad and probably much cheaper.
Before we start throwing stones, perhaps we should look at our own house first.
$5,000,000 Kennedy Center Potomac River Pedestrian and Bike Path
$250,000 Call Me Mister program, Clemson University
$16,000 National Distance Running Hall of Fame, Utica, New York
$325,000 Construction of a swimming pool, Salinas California
$100,000 Renovation of the historic Coca-Cola building, Macon, Georgia
$75,000 Thelonious Monk Institute of Jazz, Washington, D.C.
$100,000 Amphitheater construction, Bracken County, Kentucky
$150,000 Regional Youth Baseball Complex, Lancaster, California
$400,000 Davenport Music History Museum, Davenport, Iowa
$150,000 Renovation of Farmers Market, Dallas, Texas
$175,000 Wichita Art Museum, Wichita, Kansas
$250,000 Lou Frey Institute of Politics, University of Central Florida
$75,000 U.S. Dream Academy, Columbia, Maryland
$500,000 LOVE Social Services, Fairbanks, Alaska
$450,000 Johnny Appleseed Heritage Center, Ashland County, Ohio
$6,000,000 Police Athletic League
$1,800,000 2003 Women's World Cup Tournament
These are just a few of the thousands of pork projects that were part of omnibus spending bill for fiscal year 2004 (H.R. 2673).
I figure the Hungarian racer will help keep Hungary in the European news in a relatively positive way. Being associated with F1 might be useful in attracting tourists, by dispersing preconceptions of Hungary being a poor Soviet state or being full of vampire movie extras riding oxcarts and wielding torches. (Well, okay, that's more like Romania, but the point stands.)
Listening to BBC world service, the sports I hear about most often are football, cricket, tennis, and F1. So it's clearly more popular in Europe than in the US, where F1 doesn't get much attention.
Another thing to consider is that if the money had gone to some cultural attraction in Hungary, the building alone would probably have cost more than $4 million. And it probably wouldn't have helped much to attract tourists.
What strikes me immediately: Why is anyone NOT a Hungarian concerned in any way about this? Isn't this their problem?
john,
Apparently that was the advertisement; thankyou for giving me another reason to dislike Mitterand. 🙂
Jon H,
F1 is more popular in Europe (and other places) than the U.S. I don't follow the sport, but there are F1 mad crowds during every event I have seen televised.
As I recall, the US "soccer" team is sponsored by the US military.
john,
Those companies are now privately owned; well Elf and Renault are at least.
$4 million, huh? Jeez, I could come in last, and I'd do it for $2 mil. Anybody got the number of the Hungarian consulate?
Why does Hungary need to advertise? Are they trying to affect a reverse brain drain?
I can see the billboards now: "Hungary - It's Not Just for Hungarians Anymore!"
Ahem-
Though I don't have a dog in this fight, I will point out one thing-
The F1 racer will bring some enjoyment to some Hungarians for one year-
The (hypothetical) Rothko will still exist after the season is over, and it will appreciate in value for the rest of it's existence...
Just another look at the "value" of the different investments...
SirReal,
The one year may be all that Baumgartner needs to show that he is capable of competing in F1, even in the Minardi. Recently quite a few other drivers have made the jump from the back of the grid to 2nd tier teams, such as Mark Webber and the aforementioned Justin Wilson. Minardi is really the only buy-a-ride team in F1 (although I don't think Peter Sauber or Eddie Jordan would complain if you wanted to give them some money), and will give him the opportunity to be in the race and get noticed. So it may be far more than one year. And if he can't cut it, it's not an ongoing entitlement, in the manner of most of the programs that Ms Ezter would probably rather see this money spent on.
Maybe Ms. Ezter doesn't realize the rest of the subsidies that governments give to F1, usually just for one race. Special exemptions from tobacco advertising laws (that I'm sure the folks at CT wouldn't be too keen on), government sponsorship of races (like China, Bahrain, and Malaysia in particular, and every other race to a lesser degree in general), sponsorships to local teams like Ligier-Prost as mentioned above, and additional costs like security and event management.
I also wonder if the nationalistic pride that this sponsorship obviously is meant to engender isn't something that also sticks in the craw of the CT types. Trying to raise the international standing of Hungary and inflame some native passions can't be something they'd be in favor of.
Hey y'all... the whining that poor Hungary can't spend money to have a little fun sounds JUST like a mean-spirited welfare worker saying that you can't buy your kid a birthday present because you didn't first fix your substandard leaky faucets or something. Lay off. Roses do sometimes come before bread.
disclaimer... speedwell is magyar 🙂