Silverstone breaks its contract with F1 to renegotiate it

In 2009, Silverstone signed a new contract with F1 of extraordinary duration as it spanned 17 years. The stated reason was that it allowed for the implementation of a massive investment program over this period with the guarantee of retaining the premier discipline.

The sticking point is that Bernie Ecclestone had only agreed to such a period in exchange for an annual 5% increase in the fee owed by the circuit, which would raise it to 25 million pounds for the last year of the contract. Over the past eight years, it has already increased from 11.5 to 16.2 million.

However, at the same time, he has not been able to increase revenue accordingly, despite the implementation of numerous parallel activities, such as the festival, which now runs from Thursday to Sunday.

Consequently, John Grant, the chairman of the BRDC board (owner of the circuit), announced: « The decision has been made because it is not financially viable to continue hosting the British Grand Prix under the current contract conditions. We lost 2.8 million pounds in 2015, 4.8 million in 2016, and we expect a similar loss this year. We have reached a breaking point where passion cannot guide our decisions. This would not only risk the future of Silverstone and the BRDC but also the British motorsport community that relies on us. »

However, if its termination takes effect at the end of the 2019 event, it does not necessarily mean that Great Britain will permanently lose its race since negotiations are still ongoing with the new owners, Liberty Media, as confirmed by John Grant: « However, I want to clarify that even though we have activated our exit clause, we fully support the changes Liberty is making to improve the F1 experience. We hope that an agreement can still be reached so that we can ensure a financially viable future for the British Grand Prix at Silverstone for many years to come. »

The timing of the announcement is interesting since it comes on the same day that F1 announces that a major public event will take place this Wednesday at Trafalgar Square in London, with, for the first time, the presence of all 10 teams in F1 as well as many drivers. It should be noted that Lewis Hamilton will not be among the celebrities present, despite never missing an opportunity to express his delight in performing in front of his compatriots…

In these conditions, it is not surprising that Liberty Media plays the shocked innocents in its own response statement: « We deeply regret that Silverstone has chosen to use this week to invoke a break that will take effect in three years. We offered to extend the current deadlines in order to focus on what makes Silverstone and Formula 1 great. Unfortunately, the leaders of Silverstone have decided to prioritize a short-term gain. »

Let’s bet that once the emotion has passed and negotiations resume behind closed doors, an agreement can be reached. The British government, amid Brexit, might even get involved as motor sports represent 45,000 direct jobs, most of which are located around the circuit.

With the participation of www.racingbusiness.fr