SILVERSTONE CONFIRMS ACTIVATION OF BREAK CLAUSE
Silverstone has been the home of the British GP since 1987, and had been under contract to host the event until 2026. But the British Racing Drivers’ Club has triggered a break clause in the contact with Liberty, citing rising costs as the reason.
A 5% escalator fee means the cost of hosting the GP rises every year. In 2010, the BRDC paid £11.5 million. By 2026, the cost would be £25 million, meaning a guaranteed financial loss for the circuit.
“This decision has been taken because it is not financially viable for us to deliver the British Grand Prix under the terms of our current contract,” said BRDC chairman John Grant.
“We sustained losses of £2.8m in 2015 and £4.8m in 2016, and we expect to lose a similar amount this year."
“We have reached the tipping point where we can no longer let our passion for the sport rule our heads."
“It would not only risk the very future of Silverstone and the BRDC, but also the British motorsport community that depends on us.”
The BRDC now hopes to arrange a new deal to host the grand prix beyond 2019, but at a more affordable price.
The F1 group, which is responsible for the promotion of events and owned by Liberty, has also said it wants to work with the circuit owners to arrange a new deal, but hit out at the BRDC for triggering the clause the week off the 2017 GP.
“The week leading up to the British Grand Prix should be a week of great celebration for F1 and Silverstone,” it said in a statement.
“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.”
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Article Written By: Bethonie Waring
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