SILVERSTONE ACTIVATES BREAK CLAUSE WITH FORMULA 1
The British Formula 1 Grand Prix could be on the lookout for a new home beyond 2019 after Silverstone activated a break clause in its contract with series management.
Sighting massive losses hosting the last two British Grand Prix’s, Silverstone track owners British Racing Drivers’ Club (BRDC) have formally triggered the break clause in its current contract with Formula 1.
The two parties will now have to come to a new agreement for the British Grand Prix to remain at Silverstone beyond 2019.
“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. 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.” said John Grant, Chairman of the British Racing Drivers’ Club.
“However, I want to be clear that although we have now activated the break clause, we are fully supportive of the changes the Liberty team are making to improve the F1 experience. Our hope is that an agreement can still be reached, so that we can ensure a sustainable and financially viable future for the British Grand Prix at Silverstone for many years to come.” he continued.
The current deal started in 2009 with the hosting fee of £11.5 million and was scheduled to finish in 2026. However, by that time the hosting fees would have reached £25 million.
Silverstone has hosted the British Grand Prix on and off since 1948, and continuously since 1987, making it one of the staples of the Formula 1 schedules.
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Date posted: July 12, 2017