Eurosport - Wed, 07 Jan 17:32:00 2009
One of the key partners in Donington Park's bid to host the British Grand Prix from 2010 onwards has confessed that they face problems securing the necessary funding.
"Would we rather have been testing the market and putting together this product a year ago? Of course we would," said Andrew Hambel, chief executive of ISG, a joint venture between sports media giant IMG and stadium finance specialists Bastion and the company engaged to structure the seat packages for the 2010 race.
"Now is neither the best time to be persuading people to part with money for a new sporting proposition, nor is it the best time to be asking banks to back an offer of this sort."
Donington is trying to raise the final £40 million towards its re-development budget, which will go towards a range of improvements including track re-alignment, a new pit and paddock complex, six new grandstands for up to 68,000 fans, a new media centre and new hospitality suites.
But with the credit crunch hitting motorsport hard, DVLL's original plan - getting funding by offsetting bank debt against future ticket revenue - is a much less certain source of revenue than when the same principle was used successfully in the building of the new Wembley stadium. And with much of that resting on the sale of 6,000 corporate seats at an annual cost of £5,000 - thereby generating as much as £30 million a year from just five-to-ten per cent of paying customers - the circuit faces an uphill struggle.
"Of course we would have been more confident of being able to do this twelve months ago, but the project has a lot going for it," added Hambel.
"Formula 1 remains a huge draw, and the Lewis Hamilton effect is very positive. Whether it all stacks up to deliver the kind of financing we need is uncertain, but we would not be devoting the time we are to putting this package together if we were not confident that we can deliver."
DVLL's chief executive Simon Gillett, who bought a 150-year lease on the 100-acre Donington site for £30 million two years ago, remains bullish about the project, and is is positive that the necessary work can all be completed before the September deadline imposed by Bernie Ecclestone.
"I don't have to convince people," he asserted. "I'll convince them by building it."
Comment 11 - 30 of 50
jbolan@btinternet
voodoopenguin: You kind of echoed the feelings I failed to emphasise properly. A British Grand Prix needs to be on the Calendar, whether at Silverstone or Donnington. And I was discussing the idea of a roaming European GP the other day, but rotating it around countries not willing or able to commit to 5 years at a time. If 5 tracks in 5 countries could split the cost 20% each and propose it to Bernie, then as long as they are up to scratch each country could have a share. The same could be said of the USA, why go to one track every year, why not alternate Laguna Seca and Indianapolis (for example)?
marion,get some therapy......then chew your @#$% off
It might be that Donnington have to pay silverstone to run the GP for another year so they can get Donnington ready. Does not seem a silly idea.
Looks like someone has done the nasty on MGA. All his posts have gone.
Hi everyone,just back from 3 weeks of skiing etc in freezing Poland boy was it cold even F1 drivers would have trouble with that one!I would love to continue to stick with Gillets' enthusiasm from what I have read he is the only hope for a continuing British GP.
if Bernie takes away the British GP he may get lynched
one, two onetwo
ginger - I will just be happy if we keep a British Grand Prix. With all the new venues popping up I really don't see the need for a separate European Grand Prix especially if it is in a country that has one already.
Compared to the costs of staging the 2012 Olympics in the UK, this 40 millon pounds development cost is chickenfeed, I am afraid this story has more to do with the Economic problems the UK is suffering than with the relative merits of one circuit over another. Times are hard, and the investors are wary.
Sir Jackie Stewart, you openened your big mouth once again the other day, now open your big pockets like you should have done time and time again, put your money where your bith mouth is.
Marnio - Marion / U Are A To$$er , Goodbye
What you looking at is the possible (and probable) future of F1. The British GP is by all rights finished, as is the French, as is both North American races. There is noise being made about both the US and Canadian coming back, but that is all it is....noise. Unless F1 makes a radical change in direction and stops insisting on huge sums just to stage a race, and demanding ever more opulent accomadations for the wealthy, more tracks, and more teams, will abandon the sport.
MGA: That's the loophole they used. Hockenheim was German race, Nurburgring was European race. As in Spain, Velencia is officially European Grand Prix. And don't even get me started on the @#$% they pull in Italy to justify two visits to the country. Surely the European Grand Prix should be just that, European and ergo roaming from country to country from one year to the next. Not tied to one place for 5 years. Velencia isn't the European GP, it's Spain II so Bernie can grab money from the Alonso bandwagon before it disappears again.
voodoopenguin: Thank you, I thought it was in the early 90s, but wasn't sure and couldn't be bothered to look it up. I don't suppose you've got an answer for the rest of the post though do you? If Ferrari, Schumacher and Alonso earn their respective countries a second race, surely Mclaren and Lewis together should give Britain a shout for a second race from time to time?
With the BBC getting the TV rights, who is going to pay a fortune to go to any Grand Prix in the UK, European races are much cheaper, and the clever race fans go to Le Mans, so in 2010 right in the middle of this recession, and you've paid £300 for your day ticket, everytime Lewis drive past some snotty nosed kid who knows f-all about F1 waves his 10 foot flag right in front of the action, F1 is great as a guest, but @#$% when you pay your cash, your treated like a second class citizen.
Donington was as Predictable - as MARION the to$$er
"Slightly off point though, when was the last time Britain got to host two races in a season?" - 1993
Slightly off point though, when was the last time Britain got to host two races in a season? I only ask because for the foreseeable future Spain is going to get two races off the back of Fernando Alonso's success and popularity. Previously, Germany held two races because of Schumacher. And I'm sure Ferrari is a major reason for two trips per year to Italy. So what is it Bernie has against Britain, and why do those places "deserve" a second race ahead of countries who can't even get a single visit?
MGA: Silverstone has developed an undeserved mythical status amongst some quarters. I personally just want there to be a British Grand Prix on the calendar, and if Donnington can provide us with racing, real racing, then there's no reason why it shouldn't be held there.
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