Silverstone’s financial situation is improving
Under the leadership of Patrick Allen, its new director, Silverstone has regained financial stability, allowing it to look to the future with confidence. Thus its current owner, the BRDC, is no longer forced to sell its asset.
An essential step was taken in 2013 when the BRDC reached a very long-term agreement with British Telecom’s pension fund, MEPC, which thus paid it 32 million pounds for a 999-year lease.
But that hadn’t resolved all the circuit’s problems, and Derek Warwick, the chairman of the British Racing Drivers’ Club, acknowledges that the situation remained critical last year, as he stated to Autosport: « The last five years have been very difficult for us. We haven’t made any money. That’s why we almost closed the doors to survive. We couldn’t incur any expenses or make any investments. 18 months ago, we were ready to do anything to sell. There’s no doubt about it because we were in such a difficult situation and didn’t know how to get out of it. »
That is why it was decided to establish a new leadership under the guidance of Patrick Allen. He leveraged his experience in the retail industry to implement a new pricing strategy, which certainly caused a stir but ultimately generated profits. His shareholder is therefore paying tribute to him today: « He arrived with great credibility. He was essential in transforming Co-op’s image. So we knew he had a strong resume and would do a good job. We just didn’t know how good a job he would do. At first, he implemented a pricing policy which he will acknowledge himself as being poor. But he learned from it. It’s a new world for him. He learns very quickly. »
The return of profits has therefore removed the pressure from the shoulders of the BRDC, and negotiations with potential investors are now much more balanced. Derek Warwick is confident about the future of one of the main historic circuits: « Today, I don’t care if we have a deal or not. We continue to talk with two or three people, but we have been able to impose our conditions. They are no longer their conditions. This gives us the extra confidence needed to negotiate. I can only negotiate from a position of strength. If I’m in a position of weakness, they will see it directly. But now, we are no longer obliged to find an agreement. There are several options for us, which is a good thing. »
If rumors of interest from the Jaguar Land Rover group, owned by Tata, were persistent last month, the automaker will therefore have to bring out the checkbook to get hold of Silverstone.
With the participation of www.racingbusiness.fr
