Fresh on the heels of its title sponsor's financial difficulties, the Champ Car Grand Prix of Toronto has hired an Ottawa lobbyist to help secure federal money for the July 6 race.
With Steelback Brewery and sister company D'Angelo Brands Ltd. having sought bankruptcy protection in November, race president Charlie Johnstone needs to replace an estimated $500,000 in cash and another $500,000 in promotion the beer outfit brought to the table in 2007.
"My major focus right now is a new title or presenting sponsor, and frankly, it's been going well," Johnstone said.
"Obviously, Steelback has some business difficulties that they are facing, so we do not have a deal in the beer category right now, but we are talking to a number of companies," he said.
Steelback signed a long-term deal to be the title sponsor of the race after Molson ended its 22-year association with the event in 2006.
With Steelback's future up in the air, Johnstone is expected to meet with the company to explore the possibility of continuing the association "in some capacity."
Steelback or not, the race will have a beer partner because the opportunity is too good to pass up, Johnstone said. Such a sponsor is able to offset its costs by the amount of beer purchased, he explained. "And you get people to try your product, and we have their target group: They want male consumers between the ages of 19-24."
Race organizers are also exploring other funding possibilities, including federal money. Last month, the race registered David Angus, a senior partner with the Ottawa-based Capital Hill Group, as a lobbyist. His task is to investigate "opportunities for government co-operation with the Toronto Grand Prix" in the form of "grant, contribution or other financial benefit," according to the filing.
Toronto and Ontario already commit some cash to the race, which is run on the 11-turn, 2.825-kilometre temporary street circuit at Exhibition Place. The three-day event is said to pour about $50-million into the GTA economy.
Adding to Johnstone's Steelback headache were rumours that Forsythe Championship Racing team owner Jerry Forsythe wanted driver Paul Tracy of Scarborough to renegotiate his contract or he would dump the 17-year veteran.
To make matters worse, the other Canadian in the Champ Car field, Alex Tagliani of Lachenaie, Que., continues to consider a move to the NASCAR Canadian Tire Series.
But news that Tracy resolved his differences with Forsythe recently ended weeks of worrying that the Grand Prix of Toronto would have no Canadians in it.
"The race is obviously bigger than one person, but at the same time you want heroes to root for, so the more Canadians we can have in the race, the better," said Johnstone.
Should Ottawa decide to be part of Tracy's hometown drive, it wouldn't be the first time federal money helped secure a motorsport event. But after his party opposed helping the Formula One Canadian Grand Prix five years ago, when the 2004 edition was threatened by the ripple effect of anti-tobacco legislation, persuading Prime Minister Stephen Harper to subsidize Toronto's Champ Car race may be difficult.
When the government announced a $6-million contribution to save the F1 stop in Montreal, then-Canadian Alliance MP James Rajotte (now a Conservative representing Edmonton-Leduc) said that providing federal money was not the way to go.
"Taxpayers should not have been involved in bailing out the race," he said. "The Grand Prix should have relied on private-sector funding."
Johnstone said the hiring of a lobbyist was merely coincidence.
"David Angus worked on the Molson Indy years ago," Johnstone said. "We are not experts in the political scene, so it gives us some eyes and ears and an understanding of how government works."
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