The Herald Sun reported on Wednesday afternoon that the state government's offer to MotoGP promoters to upgrade the Phillip Island infrastructure was not enough to lock in a new contract.
The raceweek, which has been held on the iconic Victorian island since 1997, looks set to move either to a makeshift Adelaide street circuit or to The Bend Motorsport Park, a one-hour drive out of Adelaide, and could be shifted to the start of the MotoGP calendar when weather is often more favourable.
The 2024 race attracted nearly 100,000 visitors to Phillip Island and generated more than $50m of economic benefit (via tourism) to the state as a whole.
The news won't come as a surprise to those who have been following the months of stalled negotiations, which came to a head this month when MotoGP promoters left the state government with an ultimatum: move the race to Albert Park in Melbourne or make significant upgrades to the Phillip Island circuit to meet recently elevated international standards.
The government released a statement on Tuesday committing to Phillip Island upgrades and ruling out the Albert Park move, but their behind closed doors offer appears to have been insufficient.
State Opposition Leader Jess Wilson was quick to pounce on the news.
“Another state has snatched the chequered flag and will take the crowds, visitors and economic activity with them,” Wilson said.
“The loss of this event is emblematic of Victoria’s decline under Labor and a huge blow to the local businesses of Phillip Island.
“With at least $15bn lost to corruption, is it any wonder why we can’t afford to keep major events in Victoria?”