Prediction: Grand Prix will be rescued, revived
Baltimore Racing Development is a startup company. Almost all startups lose money in their first years. Well-run, startups, however, make sure their cash will last until that day. The Baltimore Grand Prix didn't -- by a long shot, as this weeks stories by Luke Broadwater show. The operation is $12 million in debt, much of it past due. It lost millions on this year's race. And it has little cash on hand.
But the turnout for the race seems to have been encouraging enough to generate some interest. Would-be investor Felix Dawson would seem to have the wherewithal and the contacts to turn the thing around. He worked at Constellation Energy and Goldman Sachs, and perhaps he has the Rolodex to find a sponsor to underwrite next year's race.
That doesn't necessarily mean all the debts will get paid off. I don't have any inside information, but this wouldn't be the first insolvent but promising business venture to sort itself out through a Chapter 11 proceeding. Another question, as The Sun's editorial board raises today, is whether or not the city will have to invest more in the local Grand Prix. The editorial board says: Don't do it. But I wouldn't rule that out, either.