The future of F1’s British Grand Prix "is at risk after the boss of the Silverstone race track revealed that it lacks sufficient funding and needs an investor," according to Sylt, Reid and Morson of the London TELEGRAPH. Silverstone "has a contract to host the British GP" until '26 but a clause in the agreement with F1 CEO Bernie Ecclestone allows it to be terminated as early as next year. The Northamptonshire track "is suffering from a loss of rental income after selling a lease on 280 acres of land" to clear its debts. Its plight "has led to it paying the hosting fee for the British GP in arrears, meaning that a letter of credit from its bankers is necessary for the race to go ahead." However, there is now a danger -- according to Silverstone Managing Dir Patrick Allen -- that "the bank will put the brakes on the letter of credit as ticket sales are barely compensating for the annual increase in the race hosting fee." Allen: "Can I guarantee the future? No I can’t. Could I hand on heart say to Mr. Ecclestone, ‘Don’t worry, your money is absolutely safe for the next 10 years?’ No I couldn’t." An escalation clause in the British GP contract "boosts the annual hosting fee" by around 5% and it currently stands at an estimated £16M ($24.2M). The escalator "is around half of that of its rivals and Silverstone also keeps half of F1’s corporate hospitality takings for British GP whereas other venues rarely receive any of it." Despite this, "the race is still in financial trouble as it lacks government funding." State subsidies "usually cover the running costs of an F1 race so Silverstone instead has to use the proceeds from ticket sales." This "puts it on the back foot" and organizers have been forced to increase ticket prices to compensate for the hosting fee escalation (TELEGRAPH, 9/27).
