OCTOBER 5, 2004
Hope for the British Grand Prix?
We hear that there is a potential buyer for the Silverstone circuit, lurking in the background until a decision is made about the British Grand Prix. The newcomers are apparently planning to redevelop the entire facility, perhaps with government help, and plan to create a venue which would have much wider appeal to the general publc, thus boosting revenues available and making the Grand Prix a viable financial deal.
This is a great idea but probably rather unrealistic as an increase in available revenues will inevitably result in a hike in the price of the fees being demanded by Formula One Management, no doubt using the argument that other races (notably China) is paying $40m a year and has agreed to a 10% increase in fees each year, which will take the cost up to $58m a year by the end of the five year contract.
The fact that Silverstone is currently only able to offer $16m a year suggests that even with a big new development programme, Silverstone would struggle to make ends meet under the current system.
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