PARIS (Aug. 5, 2005) — Group Michelin's decision to reimburse ticket holders for the recent U.S. Grand Prix Formula 1 race in Indianapolis will cost the company nearly $15 million, the firm said in its half-year financial results.
Michelin accounted for the estimated $14.9 million in costs in its operating income before non-recurring items, which left that item just 0.7 percent ahead of last year.
Because of safety concerns, Michelin advised all seven two-car teams running on its tires at the June 19 event at Indianapolis Motor Speedway (IMS) to withdraw. Michelin later said it would refund the ticket cost to all race attendees as well as provide 20,000 tickets to the Grand Prix event in 2006, if one is held.
Michelin said the refund will cover the face value of each ticket and will be administered by IMS. Race attendees who are IMS account holders will receive a refund automatically while non-account holders must mail their original ticket stub and a ticket claim form beginning Aug. 8. Those stubs must be postmarked no later than Aug. 29 to receive a refund.
Refund checks are expected to be issued and mailed between Sept. 19 and Sept. 26.