Montreal, Nov 19: Three of the top four teams, Ferrari, Mclaren and Renault, are heavily dependent on tobacco sponsorship. British American racing is part-owned by British American tobacco while Jordan is also backed by a cigarette brand.
Canadian organisers, who had said they could not pull off the compensation plan by themselves, will get c 6 million from both the Federal and Quebec Governments.
Labatt Breweries will put in c 5 million, leaving a c 12 million gap to be filled by Legault, who will try to raise the money through new and existing sponsors.
Though encouraging for the local tourist industry, the grand prix generates an estimated c 80 million for the city, the news was a mixed blessing for fans as Legault said ticket prices would have to rise.

The cash-settlement approach by Canada differs from how Belgian organisers and politicians dealt with their tobacco ban.



Belgium postponed its legislation to ensure the race at Spa-Francorchamps returned next year after being dropped from the 2003 calendar.



Tobacco sponsorship is also due to be prohibited in the European Union from mid-2005.


Bureau Report