JUNE 11, 2003

The Nurburgring to sue the EU?

The management of Nurburgring GmbH says it wants to take legal action against the European Union because of the planned tobacco ban in the middle of 2005. The company says that the new legislation if it goes ahead will do the company permanent damage. The original plan was for the European tobacco ban to begin at the end of 2006. The Nurburgring only has a contract until the end of 2004 and the company is worried that as a result of the legislation the European Grand Prix will be lost, as the Formula 1 World Championship will look outside Europe rather than agreeing a new long-term contract with the Nurburgring organizers. And if that happens getting the race back in five or seven years time is not going to be possible because the Nurburgring will not have the revenues to develop the track as it will need to be developed. The company says it has spent an estimated $50m on upgrading work in the course of the last eight years.