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Silverstone is close to grand prix deal

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Published Date: 21 November 2009
Silverstone has just three more weeks to save the British Grand Prix, under the latest deadline imposed by Formula One supremo Bernie Ecclestone.
While discussions between the sport's commercial rights holder and the owners of the Northamptonshire circuit have been on-going for several weeks there has been no breakthrough, with the financial terms Ecclestone wants in excess of what the track i
s willing to pay to stage the event.

The circuit's owners were given a 48-hour deadline to sign the contract on the table earlier this month but that passed with no word about what had happened.

Now Ecclestone has issued a further warning, saying the British Grand Prix will be dropped from the Formula One calendar if Silverstone does not put pen to paper before the next meeting of the FIA World Motor Sport Council in Monaco on December 11.

"The world council will meet and we will just pull it off – we will have to," Ecclestone told The Times. "We will have no other choice if we don't have a contract. We shouldn't have anything on the calendar unless we have a contract in place."

Ecclestone said he had been in regular contact with the circuit and added he believed the circuit was trying to source additional funding to help settle the deal.

"They are close and they know they are close," he said. "It's not the terms and conditions so much as whether the investors are prepared to bankroll them and take the risk."

Ecclestone said the race would be scrapped initially for only one year and no other grand prix would be scheduled in its place, reducing the 2010 championship to 18 rounds.

Damon Hill, president of the British Racing Drivers' Club, which owns Silverstone, said the two sides were close to a deal.

But he said the circuit was hesitant to sign a contract which could break it financially in the long term and risk it following the fate of the leaseholders of Donington Park, who lost a 17-year contract to stage the British Grand Prix earlier this year after failing to get financial backing and have since gone into administration.

It is believed the deal on the table requires Silverstone to pay an annual fee of £12 million, subject to an annual escalator originally set by Ecclestone at seven per cent.



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  • Last Updated: 21 November 2009 7:57 AM
  • Source: Northampton Chron & Echo
  • Location: Northampton
 
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1

St Lytham,

The Beach 21/11/2009 08:29:36
Its in the hands of the BRDC now--if there's no GP then blame the BRDC and no one else
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Joe Joyce,

Northampton 21/11/2009 08:59:18
Sorry St Lytham but I disagree. Eccleston above quotes we, we, we when he really means me, me, me ! It is clear to me that he does not want the British GP at Silverstone and would rather not have a British GP at all. I hope I am proved wrong.
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County-man,

21/11/2009 09:18:17
They'd be mad to sign a deal that could totally destroy Silverstone, just to feed Ecclestone's megalomania. Tell the greedy prune to push off - he should be prepared to compromise realistically if he wants the F1 in the UK, but he doesn't so let's do without and stay clean. Steve Riches.
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Me _again,

here 21/11/2009 09:35:39
To be honest....I'm a little fed up of hearing the words "almost" & "close" just let us know WHEN they've signed it...why they wanted to move it to donnington in the first place is beyond belief...& lets face it, its not about the racing these days its about money.
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The Disillusioned Motorist,

21/11/2009 09:52:56
Consider this...

If they land a 10 year contract...with a 7% escalator by year 10 the fee would be over £22 Million.

I stand to be corrected but I believe Bernie (F1) either gets a cut or the whole take of any merchandise sold so the income streams for Silverstone are ticket sales (primarily) and some other license fees within the circuit.

Silverstone is fairly unique in F1 in terms of drawing capacity crowds...I believe the last GP had a weekend attendance in the region of 250 000. The problem is that whilst it will be comparatively easy to pay the annual F1 fee in the first few years....as this is a contract....it won't be easy to meet the contractual fees in the final years of the contract (depending on how long the contract is).....I say this because tickets for an ordinary person currently are in the £200 to £300 range.....and you can't expect the same ticket holder to pay £360 to £550 in ten years time....which would mean either reducing your profit margin by reducing the rise in ticket prices...or reduced profit margin because the attendance progressively drops as the tickets become more expensive over time.

All the above is against a background of probable contractual improvements to be made at the circuit which all costs money.

The one thing that should make a difference is that Silverstone now has potentially both the Moto GP and F1 besides other events.

What I can't get my head around is the finances of other new circuits....I think Abu Dhabi only has a capacity for 50 000 people....so how in the world would that circuit ever make financial sense......which is why it's so totally unfair for Bernie to suggest that Silverstone should be aiming for the facilities of some the very new circuits as the new circuits have been funded in apparently 'strange ways' and Silverstone is not 'strange' Mr Ecclestone....it's British...just like you.

Please note I am not connected to Silverstone in any way....but I've been there once for a GP and once
6

The Disillusioned Motorist,

21/11/2009 09:54:48
... and once for FIA GT Cars....would love to go more often but I don't have a job....unlike Mr Ecclestone and the members of the BRDC.
7

Exiled Geordie,

Northampton 21/11/2009 10:01:12
Ecclestone is as slippery as Northants County Council member Paul Burnett, and that is saying something !
8

St Lytham,

The Beach 21/11/2009 11:16:02
The BRDC is controlled by multi millionaires like Damon Hill and Jackie Stewart who are involved to get the benefits and are not prepared usually to put their money where their mouths are. These rich blazers just want everyone else to pay up while they grandiose around the place. As far as the teams are concerned its just another race location. the fans will lose out but I guess Damon and Jackie will still be at the races if they want to be. Silverstone by comparision to other GP venues is a cold and inacessible place--try Monaco is warmer and cheaper to buy tickets.
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Silverstone Geezer,

Silverstone 21/11/2009 13:19:28
Oh, St.Lytham, what a bitter person you are - I wonder what Silverstone Circuit has ever done to upset you?

Damon Hill and Jackie Stewart may be well heeled, but they've given freely of their time for no compensation, whereas they could just float in their pools, drink their cocktails, and contemplate their navels, so please don't disrespect their contributions to motorsport in general, and Silverstone Circuit in particular.

The fact is that, as directors of a limited company, the board of Silverstone Circuits Ltd CAN'T sign a contract they believe could lead the company into insolvency at any point in the future, as the directors themselves could be prosecuted as criminals in the future if they do.

Silverstone Circuit is one of the most accessible of all the F1 venues, with dual carriageway directly to the door from both the M40 and M1 motorways - oh, and guess what - Monaco tickets are WAY more expensive than those at Silverstone. Get your facts right chum, before you start slagging people off.

I've no connection to the circuit whatsoever, other than being a highly loyal resident of the village.
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St Lytham,

The Beach 21/11/2009 16:51:53
Geezer
When Silverstone wanted to build some houses in the village to raise money the villagers objected--now the circuit hasn't got enough to do a deal with Ecclestone--all these rich ex racing drivers---if they really wanted to, could put up a few quid to support their club. Next thing the BRDC will be asking the tax payers for money--they usually do.
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