08/04/2016
NEWS STORY
The Members of the British Racing Drivers’ Club (BRDC) have voted in favour of an Extraordinary General Meeting (EGM) resolution to enable their board to continue negotiations to conclude a deal to lease the circuit property to Jaguar Land Rover (JLR) while enabling the BRDC to retain ownership of Silverstone Circuits Limited and preserve Silverstone as the UK’s premier racing circuit.
According to the BRDC: "The potential deal, which will only be completed if the board can agree terms with JLR that it believes to be in the best interests of the BRDC, would align Silverstone with two premier British brands and put the BRDC on a stronger financial footing".
The BRDC board will now reflect on a wide range of views expressed by members during the EGM in determining the next steps.
In February, weeks after BRDC president, Derek Warwick, claimed there was no rush to sell the Grand Prix venue, the club's chairman, John Grant, suggested the opposite.
"Our balance sheet is still too weak to support a high-risk £50m-plus turnover business and we have no cash reserves to fund future development of the circuit," he told BRDC members.
This came months after Silverstone managing director, Patrick Allen, admitted: "What you really need is somebody who wants to buy a trophy asset and is willing to put a large amount of equity in."
The JLR deal, which is said to be worth £25m would see the circuit become home to over a thousand members of staff, along with a hotel and heritage centre.
The circuit, which in 2009 secured a new 17-year deal to host the Grand Prix, has been hit by a number of issues not least the loss of rental income after leasing 280 acres of surrounding land to business park operator MEPC in an attempt to clear its debts.
In late February, members were advised that the current deal which sees the circuit pay its Grand Prix hosting fee to FOM a year after the race, has now been revised and that payment has to be within a month of the event.
The deal with JLR is further complicated by a bid from Lawrence Tomlinson who owns car specialist racing and sports car manufacturer Ginetta.
It's understood that an exclusivity agreement with JLR means the BRDC board cannot enter into negotiations with Tomlinson until July.