The Nürburgring wants to host F1 for five years

Last March, the Capricorn structure had decided to invest 100 million euros to purchase the Nürburgring circuit’s infrastructure, the famous Green Hell, which was in great financial difficulty. It specified at the time that the 2014 calendar was secured but made no reference to the future.

This is now a reality with an official press release from the circuit announcing the prospect of a new five-year contract, which includes the exclusive hosting of F1: Mr. Ecclestone and Dr. Wild share a common wish to host the prestigious Formula 1 race at the Nürburgring every year for at least five years starting from 2015. Both parties are convinced that this will bring significant benefits and added value to all parties involved in the event. Fans and spectators, for example, will then know where and when the pinnacle of motorsport will occur. It will also offer long-term planning opportunities for sponsors and business partners. A long-term commitment of Formula 1 to the Nürburgring is thus achievable and within reach.

An agreement similar to that of Spa

Obviously, one of the keys to the negotiations is the money that must be paid to Bernie Ecclestone’s FOM. He indicated to Auto Moto und Sport that a solution could be found on the subject: « In the end, one problem remains: the money must be found. The revenue needs to be at the level of other European races. Given that the Nürburgring is close to Spa, I can imagine an agreement similar to that in Belgium. »

For the Belgian event, Bernie Ecclestone has decided to waive the traditional entry fee required from the circuits. In exchange, he can keep all the revenue, including ticket sales. However, the circuit has fixed costs to amortize when hosting a Formula 1 race. This requires it to either find partners or sponsors, or obtain a government subsidy.

Anger in Hockenheim

However, such a prospect poses significant problems for Hockenheim. Indeed, the German circuit has a contract to host the 2016 and 2018 editions of the German Grand Prix. The official communication from Nürburgring did not fail to provoke the anger of the Hockenheim organizers, who conveyed this to the German agency SID: « It is outrageous that this press release was issued. In Formula 1, there is an unspoken rule that says: “No press release while you are still negotiating”. It’s outrageous. »

Bernie Ecclestone then simply explains that he turned to those who were best able to meet his financial conditions: « There is nothing against Hockenheim, except that it seems our friends in Hockenheim are not in a position to meet our conditions. This is why we made a special contract with them to help. But we cannot continue on this basis forever. »

But as a shrewd businessman, the F1’s chief financial officer does not want to permanently close the door on his Hockenheim interlocutors: We will respect the contract with Hockenheim. If we sign a long-term agreement with the Nürburgring, then it is preferable to terminate the existing contract as of 2015 to launch the new one. The same would apply to Hockenheim if we could sign a new contract with them. But Hockenheim would then have to conclude under the same conditions as the others.

A clever way to raise the stakes between the two circuits…

With the participation of www.Racingbusiness.fr