Quote:
Originally Posted by ScotsBrutesFan
The thing to remember is that is that it's not a renegotiation. THe old contract will end after the 2019 event.
The BRDC can now take a clean sheet approach to what they need to to do, and can offer in terms of negotiations for a new contract.
There was a comment about letting the dust settle and not even starting the process of negotiations until next year. I hope there is something innovative that can be brought to the table that can result in a contract that's workable for both parties.
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Silverstone puts Liberty in a bit of a dilemma, for what I think are the following reasons...
It is clearly the only circuit capable of hosting an F1 GP in the UK, there is no appetite from MSV or Donington to do this.
By triggering the break clause to stimulate a re-negotiation, this will have pricked up the ears of every other circuit on the calendar that believes it is paying too much or hosting the race is unsustainable.
Silverstone can point to the fact that even with a sell out event and with ticket prices on the limit of what spectators will pay, the race is still costing them around £5m in losses - and growing with the escalator.
So, you are Liberty - what do you do?
Cut the hosting fee and set a dangerous precedent for others?
Keep the fee the same and give back some of the rights at the GP for Silverstone to sell and keep the income - this is risky as it assumes that Silverstone has the capability or can hire in the capability to sell around £6m of rights per annum (including costs of delivery/fees, etc) and increasing this each year to keep in line with the race fee escalator.
Call their bluff and decide on a clean break with the BRDC and Silverstone and go for London - maybe the Docklands idea - which will arguably get a much better reception post Brexit when the UK wants to show the world it is open for business. This also meets Liberty's own brief of focusing on destination cities where they can engage the whole city in events around the GP, get fans to and from the event with integrated public transport and host the event where the people already are.
As for Silverstone, assuming the GP moves to London, they lose the gloss of the GP but also the burden of it and can just revert to being a circuit owner/operator and they should develop other events owned and created by Silverstone, no doubt falling back on their heritage via the new heritage centre they are developing.