01/07/2017
NEWS STORY
As expected, the British Racing Drivers' Club (BRDC), which owns Silverstone, looks certain to trigger a clause in its contract with Formula One Management (FOM) which will mean the 2019 British Grand Prix is the last held at the iconic track.
The circuit currently has a deal which sees it host the race until 2027. However, late last year, BRDC chairman John Grant warned members of the 'elephant in the room', namely that in continuing to host the event, with hosting fees rising by 5% each year, the circuit faced a "potentially ruinous risk".
It was subsequently revealed that a clause in the contract allows the BRDC to terminate it after the 2019 race, but that the clause must be triggered before this year's race on July 16.
While all this was happening, of course, F1 changed hands, with Liberty Media purchasing the sport and appointing Chase Carey to replace Bernie Ecclestone.
While Carey has said he is keen to keep Britain on the F1 calendar, and the event at Silverstone, from the outset he has made clear that there will be no reduction in the hosting fee.
Consequently, the BRDC has two choices, either it continues with the current contract until 2027 but raises ticket prices accordingly (do the math), or exercise the clause in its contract.
Just days before the deadline, it appears the BRDC has opted for the latter.
Philip Walker, a director of the BRDC, told the Mail on Sunday: "It is highly probable we will have to activate the break clause."
Another senior figure, who asked not to be named, added: "It has come too early for Liberty. They do not yet know which races they want to help keep on the calendar. For example, Chase has never been to a grand prix at Silverstone.
"It is not Liberty's fault," they added. "They would like to be of assistance but time has been too short and we will now give ourselves a longer stretch to sit down with them again and plan for the future."
The bottom line is that Liberty needs to start seeing a reward on its £6bn purchase, and that isn't going to happen by agreeing new terms with the likes of Silverstone, not when other circuits would then want similar deals.
While some always questioned the original deal, which was largely the work of Damon Hill whilst BRDC president, the fact is that such as it is, the deal is indeed a "potentially ruinous risk". Though the fee for the first race under the contract cost £12m the year-on-year increase means that by 2026 the BRDC would need to find around £26m.
To further complicate matters, Carey has made no secret of his desire to see more street races, and one of the cities at the top of his wish list is London.