MAY 8, 2002
Kirch PayTV goes to the wall
This will mean that things will be tighter than ever for the group which is just beginning to have to pay off its Eurobonds. In addition to that the company has to pay the teams almost half the money received from the TV revenues and so all the teams are going to lose money if Kirch cannot pay its bills. It is not clear what happens if the money does not arrive from Kirch but as the deals are based on percentages there is not thought to be any likelihood of the Concorde Agreement being broken.
Whatever the case it will add to the worries about Formula 1's short-term financial problems and will make even harder for the teams which are complaining that they are short of cash.