V8s: Use it or lose it

Big race under threat

CHRIS HILLOCK/Waikato Times

VANTAGE POINT: Grandstand seats rise over the corner of Norton Rd and Tristram St as part of Hamilton 400 track construction.

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Hamilton faces losing the V8s if support doesn't improve dramatically, and event organiser Dean Calvert is taking such a financial hit his family home is up for mortgagee auction.

Mr Calvert's $1.69 million home at Whale Bay in Raglan is up for mortgagee auction on April 8, the Hamilton 400 co-organiser saying he could no longer meet mortgage repayments.

Mr Calvert and race director Steve Vuleta are directors of Caleta Streetrace Management which brought the V8s to Hamilton and won the seven-year resource consent to run the event, convincing the Hamilton City Council to fund the $7.95m in infrastructure needed.

Mr Calvert's holding company Deanmc Holdings, owns just over half of the shares in Caleta and his Raglan family home.

Mr Calvert said Caleta had been forced to reassess budgets for the event this year after revenues shrank from $14m to $10m last year.

"We've had to put a lot more back into the business ourselves and we have a lot of contractors and staff to look after so we have taken personal hits to make sure that the company is looked after."

He said all contractors and suppliers had been paid and deposits for this year's event were all up to date but it had been a struggle in the recession.

The first year's event saw corporate sponsors include Ford, Holden, Exide, GT Radials and BP. Last year Holden had a sponsorship package but this year is not involved at all.

"We only have one car-linked company involved this year, HSV. This business is heavily reliant on people attending and corporate and hospitality support but when times are tough those are the first things that get taken from any companies budget."

Mr Vuleta said said it was time for Hamiltonians to step up and support the event if they wanted to keep it in the city.

"Ticket sales are considerably down on where they have been and we need Hamiltonians to get back to supporting the event like they did when the council made the prudent decision to put their hand up for it."

"The event is only safe provided ticket sales increase dramatically. We can't keep taking personal hits like this."

Mr Calvert said losing his family home has looked after the city's interest in the event and he said he is committed to keeping the V8s in Hamilton and returning to run the event next year. Caleta was on target this year, after being caught out last year by building about 10,000 too many grandstand seats which they had to pay for but were not filled, he said.

This year the company has built grandstand seating based on ticket sales.

Mr Vuleta had bought a house in Hamilton and was living here with his family, but he had to sell up and move back to Auckland.

Hamilton Mayor Bob Simcock said the council had spoken with Mr Calvert but had no concerns about his financial situation having any impact on the event.

"We have been told ticket sales are a little bit soft this year but all events are struggling a bit in the recession. People are spending less."

He believed the council's $7.95 million investment in the event was safe.

"It's a significant event for the city and we want it to fly and prosper, just as we want its organisers to prosper."

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