There are reports that the Grand Prix at Hockenheim is under threat, after race promoters reported a heavy loss on the 2005 race, and a worryingly slow start to ticket sales for the 2006 event.

According to a report by Ernst + Young, the company that organizes the German Grand Prix at Hockenheim is facing a financial disaster, and could be out of business by April, should a solution not be found.

A few years back, at the height of the 'Schumacher boom', ticket sales were superb, but now, as a new order dominates the track, German fans are unwilling to pay as much as 300 euros for their tickets. Then, of course, there is the increasing fee demanded by Bernie Ecclestone's Formula One Management.

Of course, this news comes on the back of a major redevelopment of the Hockenheim track, mostly financed by the regional government, a redevelopment that was intended to increase revenue.

Part of the reorganization of the track involved the leasing of a grandstand for Mercedes-Benz. Fortunately the 'lease' on the stand is for ten years, otherwise, the organizer's reserves would have been exhausted by February. That said, according to Ernst + Young the company can only put off the inevitable for another two months.

The Mercedes-Benz lease is thought to be worth 25 million euro, however, the circuit's owners are understood to owe the banks around 29 million Euros, and another 18.4 million to the regional government.

This news comes on the back of threats to both the Italian and Belgian events. The Grand Prix at Monza is under threat, as a result of legal action over noise, while the Grand Prix at Spa, like the Hockenheim race, is due to financial problems.