Formula One supremo Bernie Ecclestone has declared an end to Donington Park’s ambitious plans to host the British Grand Prix and offered Silverstone the chance to keep the race on the calendar.
The commercial supremo said that Donington Ventures’ efforts to raise the funds needed to develop the circuit were over.
Donington said in a statement last Friday that a £135 million bond had failed to secure enough subscribers and they had until noon on Monday to remedy a breach of contract or lose the race.
The Briton said there would be no penalties for Donington’s failure and Silverstone had already been offered a similar 17-year deal for a traditional race whose place on the calendar now looks uncertain. Yahoo! Eurosport
The expiry, at midday yesterday, of yet another “final” deadline set by Ecclestone for the owners of Donington Park to come up with the £130m required to redevelop the East Midlands track in time to fulfil its contract to stage a Grand Prix in 2010 (and for the 16 years thereafter), surprised no-one, not least since a statement last Friday had already confirmed a proposed bond issue had “failed to secure enough subscription”.
His insistence over the weekend that Silverstone could sign a contract for the race as early as today is regarded as hugely misleading, when the deal on offer is effectively the same one the British Racing Drivers’ Club, which owns the Northamptonshire circuit, felt unable to risk signing 18 months ago.
Essentially FOM (Formula One Management), controlled by Ecclestone, wants a guaranteed annual fee understood to be in the order of £11m, with a built-in escalator over the length of the contract. But facing the problem that their only source of income connected with the race is ticket sales, the BRDC are understood to only feel able to pay £9m.
In the circumstances Ecclestone’s insistence that even in the current economic climate he will not offer the British Grand Prix a reduced rate – such as those paid by Monza and the hugely wealthy tax haven of Monaco – is likely to lead to an increase in calls for his brutal commercial armlock on the sport to be broken.
BRDC president Damon Hill said yesterday he remained optimistic an agreement would be reached, but reiterated Silverstone would not sign a contract that could put the financial future of the track at risk.
“I’m confident a deal can be worked out. The contract can be of any combination of years, but it has to be affordable,” Hill said. Independent
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