Site logo

BRDC rejects Liberty Media proposal

NEWS STORY
17/07/2017

Silverstone's owner, the British Racing Drivers' Club, is understood to have rejected a bid which would have seen the British Grand Prix secure for the next five years.

Liberty Media, which bought F1 in January, had offered to run the event itself for the next five years, on this basis that it was given the circuit for the three weeks surrounding the race for free.

However, claiming that such a deal would lose the track around £20k a day, the circuit's owners are understood to have rejected the deal.

Clearly fearing a public roasting, FOM's Chase Carey and Sean Bratches were not as prominent over the Silverstone weekend as they have been at recent events, Carey no doubt still recovering from the public ambush from Eddie Jordan at the London event last week, when the excitable Irishman declared to the crowd that the event was saved, even though the American had said nothing of the kind.

The BRDC claims it triggered the break clause in its contract - the timing of which, though legally necessary, angered Carey - in the hope that in the years up to 2019 a new deal might be agreed, though FOM insists it has no intention of renegotiating the deal.

Indeed, talking to The Times, Carey admits that he is puzzled by the organisers claims of financial hardship under the current deal.

"I don't understand some of their claims about their economics," he said, "particularly when I look at our business in other places. The people who run a good race seem to have a different picture than they are painting.

"But I don't have visibility to how they account, how they assign costs," he admitted. "I know we are not treating them unfairly. We are treating them consistently with others. We value Silverstone and we have three years to reach an agreement.

"Our preference is for Silverstone but the British Grand Prix certainly does not have to be here," he warned. "We have had expressions of interest from other places in the UK, but I'm not trying to play one against the other."

Check out our Sunday gallery from Silverstone, here.

LATEST NEWS

more news >

RELATED ARTICLES

LATEST IMAGES

galleries >

  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images

POST A COMMENT

or Register for a Pitpass ID to have your say

Please note that all posts are reactively moderated and must adhere to the site's posting rules and etiquette.

Post your comment

READERS COMMENTS

 

1. Posted by cricketpo, 19/07/2017 14:28

"Darn another opportunity lost @mickl! Just have to stick to the day job."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

2. Posted by mickl, 18/07/2017 22:00

"@cricketpo Haven't the BRDC already flogged the surrounding land to developers a few years ago?"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

3. Posted by Spindoctor, 18/07/2017 11:17

"The point here is that Silverstone will go broke if it carries on as at present. If that happens, no British GP - is that too hard for the moustachioed one to comprehend?

It seems to me that Liberty were silly enough to pay too much for declining assets (well done Bernie!), and that they feel the need to "sweat" them in order to get a return. Well tough luck guys.
Logically their only hope to make money quickly enough to please "investors" is to haved more races and\or screw more cash out of current ones. In addition they need to have more "events" which make them money.

It might be Formula One, Jim, but not as we know it...."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

4. Posted by cricketpo, 18/07/2017 10:32

"@Peter Rikkitt - It's out there now! The circuit could be preserved as it is. But all the surrounding land could be built on and I am sure Sir Norman Foster or some such could design a Bedfordshire Monaco/Singapore. Fantastic location just an hour from the M25/M42 its a winner! where do I put the money?

As you said many a true word spoken in jest and unfortunately for Silverstone it WOULD be worth billions as a building plot.

If running F1 is too expensive for the BRDC it must walk away. Or renegotiate. So far so good. I wonder whether Liberty Media have fully thought through their business model. As has been stated before on this website and elsewhere the British Grand Prix is well attended. There are several circuits across the F1 calender that can't say the same. I know Liberty have bought at the top of the market" and need to see a return on their investment but they should be careful not to alienate too many current fans just in case they cannot conjure up new ones. "

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

5. Posted by mds167, 18/07/2017 8:15

""I know we are not treating them unfairly. We are treating them consistently with others" says Carey. which just means that F1 is too expensive.
Which is what, I think, Derek Warwick was trying to get out there without openly criticising Liberty media given that they still want a British GP.
If a GP can only be run with government assistance, it is too expensive.
As for 'giving' the circuit to Liberty for three weeks - what about existing contractual obligations? Do the profits from those three weeks just go to Liberty? Do they empty their existing calendar and let Liberty have a three week party?
An empty offer to make Liberty look like they have the higher ground.
Step back, BRDC, look after all the other forms of UK motorsport. Let F1 slip behind the paywall, see if other circuits / countries wake up and decide that what they get isn't worth the price and the sport gently implodes."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

6. Posted by GrahamG, 17/07/2017 19:26

"Silverstone can thrive without F1, can F1 (at least in terms of UK enthusiasts willing to pay Sky) survive without Silverstone...?
Any new circuit is fantasy island, the anti everything groups will soon squash anything which is put forward."

Rating: Positive (1)     Rate comment: Positive | NegativeReport this comment

7. Posted by Peter Rickitt, 17/07/2017 14:09

"More 'wood and trees' thinking from the BRDC - so much for their commitment to 'heritage' as their abiding motivation: but it was their excessive expenditure on the Vanity-Wing and consequent emasculation of the historical circuit that, not only consumed so much of their resources to get them into this mess. but also showed their lack of understanding of real heritage.
This muddled thinking was exemplified by the grumpy Derek Warwick interview on C4 where he kept reiterating the need for support - what planet are these people on if they think any UK government is going to subsidise a sport that indulges excess ?
If a street-circuit is the only viable option, instead of making a street circuit fit a city, why not do it the other way round and sell the WHOLE of Silverstone to a developer who builds a city over it to fit a Grand prix in once a year ? The BRDC members, most of whom are not awash with cash, would get an enormous payout each; the BRDC bigwigs would keep their 'heritage GP' intact; all the other circuits would benefit from increased usage from all the other meetings and testing; the government would get a much-needed new population centre; and the motorsport industry would retain its infrastructure - sure the circuit would have to change but the BRDC is used to that ! And they could remove themselves to some swanky premises in Pall Mall and leave a more business-like promoter to run the GP.
Temporary grandstands on office precincts, the old pits (bigger than Monaco) could be re-used from its the use as a street-food centre and bazaar, the Becketts complex preserved in a city-park with a shrine to that other martyr to the cause (BCE), Hangar Boulevard with the new Immigration Office (the Stowaway Building) with large precinct in front, similarly the new Police HQ (Copse, of course)and the new IKEA hotel at Woodcut,
opposite the old BRDC clubhouse as the notorious new nightclub Jordan's, with lots of other new offices (including the hq Of LucasAid, the famous manufacturer of electric power-units which are used by the new F1 team Coolhard, which is, like its predecessor McLaren, having a poor season, ascribed to its failure to recharge its batteries overnight) and retail complexes to service all the new penthouse apartment blocks and 6000 new houses....and the Vanity-Wing ? Still full of officious individuals I am afraid, as the City Council offices, but now known as Liberty Hall.
A satirical bit of fun perhaps - more ideas welcome: BUT 'many a true word spoken in jest'?

"

Rating: Positive (1)     Rate comment: Positive | NegativeReport this comment

8. Posted by mickl, 17/07/2017 12:38

"Let me guess...the deals wasn't 'engaging enough for the fans'...........

Think the point it that whilst the circuit isn't losing money at the moment but with the 5% accumulator it will soon not be able to cover costs. Don't think Liberty is grasping that idea. I can't recall if the BRDC has stated the circuit can survive as is if the F1 race was lost. Would existing races and events keep the circuit afloat?

Wonder if there's any clause in the contract that states whether or not the current obligations continues if the circuit changes hands. Maybe a change of owner would allow for a new contract to be negotiated giving both sides a get out option without damaging other current contracts with other promoters."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

Share this page

X

Copyright © Pitpass 2002 - 2017. All rights reserved.

about us  |  advertise  |  contact  |  terms  |  privacy & security  |  rss