Oddly enough, actually, the Circuit of the Americas completely sold out non-license tickets (as simply as possible, seats in "prime" locations require the purchase of a license to that seat for every event held at COTA in the year for some number of years; the rest of the seats are sold on an event-by-event, year-by-year basis. The latter category sold out) and are building additional grandstands for the race. I have no idea what their capacity is...
...and it will still be a huge money-loser on the sanctioning fee alone (not the cost of production) unless they sell ~150,000 tickets which even NASCAR can't do at a much lower price. To pay off construction and sanctioning fee in ten years (let's pretend it gets ten years, and let's pretend ticket sales are their only revenue when we know that's not true at all), they would need to sell 300,000 $200 tickets every single year, which is hard to do when I assume capacity is more like 100,000 or so.
And we'd still be losing money then, because there are more costs than just sanctioning fee and construction. Paying staff, for one...
Ten Grands Prix will cost well over $600,000,000 in Austin. $300,000,000 to build it, and $300,000,000 to sanction it (the local government will pay those fees). You can't tell me the investors ever see their $300,000,000 again. And you can't tell me the government sees $300,000,000 in benefits (which isn't really the right way to look at it...the money comes from taxpayers...taxpayers will see an increase of a few dollars at most per year for the Grand Prix...will each and every tax payer get a few dollars worth of benefits from the GP? Who knows, but theoretically, multiple people can benefit from the same thing the GP brings, so it wouldn't total $300,000,000 for the government but it would total the few dollars for every person in the perfect world, where it will probably total a lot for Wild Bubba that will then be taxed by the government to get something back into the fund which would then put more than the $30,000,000 sanctioning fee in theoretically if taxable income increased as a whole as a result of a Grand Prix which would then make everyone mad because now the government has more money than they need for the race and all that well anyway there'd probably be a little increase for some others and nothing for many and then they'll all realize that there might not actually be any kind of tax increase at all because the money's been sitting in a fund to attract sporting events to Austin and if you're paying the money into the fund anyway you may as well get the sporting event...it's more of an issue of people wanting to cut out the tax that they didn't realize they were paying and were therefore fine with when it was doing nothing, but are now angry about when it is doing something, rather than people resisting a new one, though I think they think it's a new one and I sort of don't know if it is or isn't).
Say what you want about Ecclestone, but anyone who can get twenty races on a calendar with more wanting a piece despite the economics of hosting a Grand Prix being pretty horrendous for any entity, public or private. Is it a short-term approach? Yeah. But it's a long short term and I don't lose much sleep over Grands Prix coming and going.
SparkNotes: I don't know how I feel about the cost to host a race but enough venues feel pretty damn good about it and that's what counts.















