Paul Jeffrey
Premium
The BRDC, owners of the Silverstone circuit, have confirmed a break clause has been triggered that effectively terminates the deal to host the UK's round of the Formula One World Championship after 2019.
Currently under contract to host the Formula One British Grand Prix until 2026, the British Racing Drivers Club have the option to terminate their agreement with Formula One at the end of the 2019 running of the event, a clause in which they have activated ahead of the race this year.
BRDC Chairman John Grant said of the news:
"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.
“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.”
“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.”
It is generally understood that Silverstone have to pay an annual increase of 5% on the original deal brokered by former World Champion Damon Hill back in 2010, with the initial £11.5m fee rising to as much as £25m by the end of the current agreement.
Suffering yearly losses despite the incredible attendance figures each season, the BRDC have been forced to play their hand and protect the long term interests of the circuit either with or without the headlining Grand Prix event.
Although signalling the end of the current arrangement, the BRDC are thought to be keen to sit down with Liberty Media and the FIA to thrash out new terms on a deal post 2019, however with a mooted event around the streets of London and the ever present, albeit distant threat of rival tracks Brands Hatch and Donington Park, it is by no means certain that Silverstone will retain the race in a new deal with the power brokers of the sport.
Despite the loss of prestige that would come with losing the British Grand Prix, Grant feels that retaining the event is not critical to the success of the venue and a "bright future" could still be possible without Formula One.
"While we would hate to lose the British Grand Prix, Silverstone will have a bright future without it – both commercially and in terms of continuing to serve as the heart of the British motor racing community.
"But losing the British Grand Prix would have a negative impact that is felt far beyond Formula 1 and Silverstone.
"Seven out of the 10 F1 teams are based in the UK – many close to Silverstone. This brings vital jobs to the country, as well as having a positive impact on the local communities and economy.
"There’s a good reason why the area around Silverstone is known as the 'Silicon Valley of motor sport'. Take away the British Grand Prix and this is all placed at risk."
As news of the Silverstone deal ripples through the Grand Prix community, Red Bull Team Principle Christian Horner warns that unlike previous years, Silverstone are no longer the only game in town capable of hosting a Formula One race in the UK."But losing the British Grand Prix would have a negative impact that is felt far beyond Formula 1 and Silverstone.
"Seven out of the 10 F1 teams are based in the UK – many close to Silverstone. This brings vital jobs to the country, as well as having a positive impact on the local communities and economy.
"There’s a good reason why the area around Silverstone is known as the 'Silicon Valley of motor sport'. Take away the British Grand Prix and this is all placed at risk."
“Silverstone is a wonderful track,” said Horner. “The teams and the drivers love driving there. Liberty has made a commitment that there will be a British Grand Prix.
"But with this London event happening tomorrow (street demonstration), if that was a success – which hopefully it should be – with the recent legislation changes that are happening in the City of London, one can imagine a London Grand Prix being pretty attractive to the Liberty guys.
“Silverstone needs to be a little bit careful how they handle themselves and negotiate, that they don't find themselves losing out. I am amazed that they have triggered their break clause.”
"But with this London event happening tomorrow (street demonstration), if that was a success – which hopefully it should be – with the recent legislation changes that are happening in the City of London, one can imagine a London Grand Prix being pretty attractive to the Liberty guys.
“Silverstone needs to be a little bit careful how they handle themselves and negotiate, that they don't find themselves losing out. I am amazed that they have triggered their break clause.”
It is expected that parties from the BRDC and Formula One will begin negotiations as to the future of the British Grand Prix in the very near future.
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Do you think Silverstone can retain the British Grand Prix after 2019? What other options exist for Formula One in the UK? Let us know in the comments section below!
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