Here we go again. That was my first thought on hearing that Silverstone's owners had triggered a break clause in their contract to host the British Grand Prix, putting the future of the race after 2019 in doubt.
The British GP’s future is a long-running soap opera: an on-again, off-again drama, one that keeps going even though the key players keep changing.
I thought the departure of Bernie Ecclestone, who seemed to take particular delight in agitating the British Racing Drivers’ Club (BRDC), which owns Silverstone, when he was running F1, would calm the situation. In fact, it’s the sport’s takeover by Liberty Media that has set the stage for the latest plot twist.
London to host F1 Live event in build-up to British GP
Here’s the background in brief. In 2009, the BRDC signed a long-term deal for Silverstone to host Britain’s Formula 1 event until 2026. The Promoter’s Fee was £11.5 million in 2010, but includes a 5% annual escalator. That means it has risen to £16.7m this year – and would have been £25m by 2026.
The BRDC says the fee makes the deal financially unviable, noting that it lost £2.8m hosting the race in 2015 and £4.8m in 2016. It has therefore exercised a break clause in its contract that exists after 2019, and now wants to negotiate a better deal with Liberty Media.
Now, I’ve read some criticism of the BRDC for signing a contract it surely knew would become unviable in the first place. But this ignores the fact that it negotiated a break clause into that contract to allow for such circumstances and is simply now exercising that option.
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BRDC......,!
For too long the BRDC have done nothing to make sure the British GP stayed at Silverstone,there has been no investment at other GP circuits that have been passed by,the British Goverment should have been involved in this Sport and surely some investment,lottery funding could have been found to help promote our own GP....?
yes, of course
they've done nothing. Apart from building a new pits complex, changing the track layout, selling off land to be able to afford the fee, running a great race meeting every year, getting probably the biggest crowds of any GP in the world and running dozens of other race meetings, such as the historics and the Moto GP......Having refused Silverstone funding the government has only just decided not to support a lunatic project to build a rival circuit in Wales with heavy government subsidy!
Hopefully
This situation can be resolved. It's important to remember that the BRDC is essntially a club for former racing drivers of some distinction - it is a great honour to be accepted as a member. As such it simply can't risk the prospect of bankruptcy when it would lose control of Silverstone. There is a bit of of hypocracy in Liberty's negative comments about the BRDC's timing of this announcement. They know as well as anyone that the contract insists the announcement had to be made before the BGP this year. They could have easily made a variation in the contract to allow more time to reach an agreeement. But they didn't and the BRDC had no option other than to announce it was taking advantage of the break clause. It's really that simple.