Formula 1 execs "expect British Grand Prix organizers to activate a break clause next week," according to Alan Baldwin or REUTERS. A source said that Formula One Management offered to take over the race for five years, "absorbing annual losses of between two and three million pounds" ($2.6M-$3.9M). The offer, and another to delay the deadline to the end of the month to allow more time for negotiation, "proved insufficient." The British Racing Drivers' Club argued "the break clause would allow more favorable terms to be reached." F1 Managing Dir, Commercial Operations Sean Bratches "expressed optimism" that Britain would remain on the calendar. He said, "We need promoters who share that vision. We have three years to achieve that objective and are optimistic that a new fan-centric solution can be found" (REUTERS, 7/5). The BBC's Andrew Benson wrote it "has not definitively happened yet," but it is now "almost certain that Silverstone will in the next few days exercise an option to end its contract to host the British Grand Prix" after '19. The future of the British Grand Prix has been "in doubt" for as long as many people in F1 can remember. The current contract, signed at the end of '09 for a 17-year period, was "meant to end that." But it "has done anything but." The "devil was in the detail." The current contract -- signed at the end of a "tedious few years of speculation and machinations concerning the future of the race" -- was for £12M in the first year, '10. But it has a 5% annual escalator in it. So this year, the race costs £16.9M ($21.9M). By '27, the "final year of the deal if it were to run its course," £27.5M ($35.7M). These numbers are "massively less than some circuits are paying." For example, Bahrain pays at least $40M per year, Russia $50M and Azerbaijan a reputed $75M. But those races are funded by authoritarian governments "keen to promote their country to the world." Silverstone is a private members' club that "has to run a viable business." Silverstone "desperately wants to host the British Grand Prix but it cannot do it at any price." Negotiations with F1 owner Liberty Media are "still ongoing but have pretty much reached an impasse." F1 said that it "cannot renegotiate an existing contract." So then the question becomes, "what does F1 do next?" You can "forget right off the bat any suggestion that any other permanent circuit in Britain could host the race." There is "none suitable for a start -- and none that could afford it either." F1 CEO Chase Carey and Bratches are "highly accomplished businessmen" but it would take "some kind of miracle to resolve all those issues" (BBC, 7/6).
ENGINE MEETING: AUTOSPORT's Barretto & Rencken reported Aston Martin and Cosworth made their first appearance in the group discussing future F1 engine regulations this week. F1 execs and FIA are "working on plans to adjust the current formula of turbocharged hybrid engines and create a new specification" from '21. A second formal meeting of what is now officially named the Power Unit Working Group was held on Tuesday, with Aston Martin, Cosworth, Zytek and Magneti Marelli attending for the first time (AUTOSPORT, 7/5).
