The checkered flag "could soon be waved on the British Grand Prix," after the owner of the Silverstone racing circuit that hosts the Formula 1 race said that "it will cease to run the event because of a dispute over finances," according to Murad Ahmed of the FINANCIAL TIMES. On Tuesday, the British Racing Drivers' Club announced it activated a break clause in its 17-year contract to host the race that had been due to run until '26. Silverstone will now hold its final Grand Prix in '19. The maneuver is an attempt to draw F1 owner Liberty Media "to the negotiating table." The BRDC wants to agree to a new deal to "reduce the cost of holding the event" and its announcement is "designed to draw maximum attention to the dispute," with the '17 race set to take place this weekend. BRDC Chair John Grant said, "We have reached the tipping point where we can no longer let our passion for the sport rule our heads." The U.K. is a "crucial market" for F1. It is the sport's "most lucrative broadcast market by far." Liberty has been "unwilling to renegotiate the contract for the race," with execs fearing any concessions to the U.K. circuit would result in other tracks around the world demanding "similar negotiation" for their "promotion fees." These fees make up one-third of F1's annual revenues of $1.8B (FT, 7/11).
FINANCIAL RUIN: In London, Jack Austin reported it is the "demands of the hosting fee" which goes up by 5% every year -- from £12M in '10, the year in which the new long-term deal started, to £16M ($20.6M) this season and £25M ($32.1M) in '26 -- that are "crippling Silverstone." Liberty "staged a series of talks" with the BRDC and Silverstone, and while Silverstone "wants to continue its relationship with F1," it will "not do so at the cost of financial ruin" (INDEPENDENT, 7/11). REUTERS' Alan Baldwin reported Grant said that Silverstone, which has the biggest turnout of any race on the calendar, was the "only circuit in Britain that could host the race and hoped a more sustainable deal could be reached over the next three years." An F1 spokesperson said that "the decision and the timing of the BRDC's announcement was regrettable." The spokesperson added, "The week leading up to the British Grand Prix should be a week of great celebration for F1 and Silverstone. We deeply regret that Silverstone has chosen instead to use this week to posture and position themselves and invoke a break clause that will take effect in three years' time" (REUTERS, 7/11).
OTHER VENUES?: SKY SPORTS' Galloway & Morlidge wrote the U.K. is "well served by other serious, well-run permanent race circuits but none can match Silverstone's infrastructure and scale." If Silverstone cannot make an F1 hosting contract work, "the challenge would be as great, if not greater, for a Brands Hatch or Donington." London has "long been regarded" as a "dream" destination for a race "for F1 owners past and present, but the logistical challenges of holding a four-day event in one of the world's busiest capital cities remain myriad." Then there is the question of "who exactly would fund it" (SKY SPORTS, 7/11). The BBC reported F1 CEO Chase Carey said this week that it is his "priority" for the event to stay at Silverstone but that there was "interest from other places, other U.K. options, that would have appeal." For Silverstone to continue as host, F1 and the BRDC now have "two years or so to try to hammer out a mutually satisfactory deal" (BBC, 7/11). The PA's Philip Duncan reported nearly 140,000 spectators watched three-time world champion Lewis Hamilton claim his third consecutive win at Silverstone last year. And a "near sell-out crowd is expected again this weekend as Hamilton bids to reduce rival Sebastian Vettel's 20-point lead at the summit of the championship" (PA, 7/11).
