When is a good deal not a good deal?
21/02/2010 When you find out that one of your competitors has got a better deal. This may well be going through the minds of the British Racing Drivers' Club (BRDC) board members this weekend as they digest a report by the Toronto Star newspaper which reveals details of the deal signed between Bernie Ecclestone and the organisers of the Canadian Grand Prix. In December last year the BRDC announced that it had signed a deal to keep the British Grand Prix at its Silverstone circuit until 2026. Although no financial specifics were revealed, it was reported that this will cost the BRDC around £12m annually. At the time of signing, Silverstone was believed to have negotiated one of the cheapest race-hosting fees in F1 after Monza and Monaco which pay next to nothing. However, the Toronto Star reports that when agreement was reached in November last year on a five-year deal to return Canada to the calendar Ecclestone settled on a fee of £47m (CAD75m). This works out at around £9.4m per year which may make the BRDC wish they had held out a little longer in their dealings with Ecclestone. It could also cause some head scratching at circuits such as Malaysia and Abu Dhabi which reportedly pay around £32.5m and £32m respectively every year to host F1. Why they should pay nearly four times more than Canada could well be a question they are asking themselves. Time may tell whether it is a question that they end up asking Ecclestone. |
