Silverstone's fate - Octagon sells off Motorsport

[pixie]

Interesting comments from Bernie...........report taken from BBC's webpage

Bernies comments

[chezza]

Hmmm...Things like this have been floating around for a while. Unfortuantely it seems that it is more likely that they are true. The British GP cannot disappear from the calendar, but I have no idea what the solution could be, especially as nobody seems to want to take on the responsibilty of such an event, and circuit.

[Stephen Green]

It seems to me that once again BE is using this to have a dig at the BRDC. I wouldn't be at all surprised if the other rumour resurfaced, that he buys Brands Hatch and runs the GP there using Nicola Foulston to manage the circuit on his behalf. Lets not forget that he already owns Paul Ricard through a nominee company.

[Mark Mitchell]

BBCi reports...

The British Grand Prix is facing a fresh crisis following a decision by the company that owns the contract to run the race to sell up.

Octagon Motorsports bought a 15-year lease to run the Grand Prix in 1999, but its parent company - the US marketing giant Interpublic - is to sell all its motorsport business because of debts.

Formula One boss Bernie Ecclestone said he was not worried about the move, but admitted it raised questions about the future of the race.

Ecclestone now admits the contract Octagon signed with him when it bought the rights to the race was not commercially viable.

"If no-one wants to run the race, then there won't be a British Grand Prix"
-Bernie Ecclestone

"If someone buys Octagon, whatever its assets and liabities are, they will assume them. So either Octagon will run the race or someone else will," he told the BBC Sport website exclusively.

"It's a pity Octagon entered into an agreement not knowing what the commitments were, but I have no doubt they will honour those commitments.

"They made their decision based on research. They knew what they were getting into - I told them not to do it.

"The contract is guaranteed by Interpublic. But if no-one wants to run the race, then there won't be a British Grand Prix."

[Cynic]

So is anyone actually suprised by this? I for one will not be sorry to see the back of them. It was obvious from the start that they bought Octagon because they saw it as a cash cow. This result was inevitable from the moment they realised how little money they were going to make from the GP. The only problem now is that we have to hope someone is prepared to pick up the pieces.

[Stephen Green]

There is already a thread in the F1 forum on this issue so I am going to merge the two ladies and gentlemen...

[Tony_J]

Its not just the GP. The 4 circuits Octagon own are up for sale. Not long ago they were trumpeting about their investments for this year. Will the circuits be left like building sites as work stops? Autosport suggests that their £120m purchase of Brands Hatch leisure from Foulston has dwindled to a mere £44m

[Bononi]

Done.

[Cynic]

£44m? Right, someone start collecting everyone's spare change, and I'll see if I can haggle them down a bit more. And in case anyone thinks I'm not serious, this sort of thing works for football clubs, why not for circuits?

[Suzy]

This is not pleasing. Mind you, Octagon were expecting to make a loss and they are not the only company losing out in the current climate.

Wonder what to do with my Octagon season ticket - hope it will still be valid.:confused:

[Stephen Green]

Until the circuits are sold your ticket should be valid. Interpublic are only talking of adopting an exit strategy at the moment which indicates they are still considering their options.

[Piglet]

There's nothing new in the stuff about Octagon.

The stuff from BE about the BRDC and GP rights is really quite funny! That's not quite the way I remember how it all happened...wasn't it something to do with being handed an April GP date (in November!) and then BHL trying to take over the world, paying the earth for the rights along with negotiating away their rights to revenue from the hospitality AND then discovering that they didn't have a circuit to run it at!!

[Mr V]

Originally posted by Stephen Green
I wouldn't be at all surprised if the other rumour resurfaced, that he buys Brands Hatch and runs the GP there using Nicola Foulston to manage the circuit on his behalf.

As much as i'd love to see F1 cars running at Brands aswell as Silverstone, due to the planning permission needed etc for Brands, i think that it's more likely to see no British gp on the calender than a race at Brands

[Stephen Green]

Two points.

1. The April date was handed to the BRDC because they refused to sell Silverstone to BHL (that's my theory at least)

2. Brands GOT planning permission, it was the government at the last minute deciding there should be a public enquiry that buggered things up.

[Sato san]

Originally posted by Stephen Green
that he buys Brands Hatch and runs the GP there using Nicola Foulston to manage the circuit on his behalf.

I thought Nicola Foulston had had enough of Managing BHL and Brands Hatch race track.....It has been a few years , so maybe she would come back and run it. ???

[chrisgr31]

Did Octagon pull the planning application after the decision to have a planning enquiry? After all that work I'd have thought they should have kept the application in. That would have given them greater flexibility, an presumably increased the value of Brands Hatch as a successful outcome would have removed some of the uncertainity about the future of the venue.

[Piglet]

Originally posted by Stephen Green
Two points.

1. The April date was handed to the BRDC because they refused to sell Silverstone to BHL (that's my theory at least)

I doubt there are many people who would disagree with you on this....I just wasn't going to put it in print!!!

[Stephen Green]

No they didn't pull the planning application. Planning permission was granted, it was the Labour Government that decided they wanted a public enquiry, so in theory the planning consent stood subject to the enquiry being passed.

Piglet, that's why I added (that's my theory at least!)

[chrisgr31]

Originally posted by Stephen Green
No they didn't pull the planning application. Planning permission was granted, it was the Labour Government that decided they wanted a public enquiry, so in theory the planning consent stood subject to the enquiry being passed.

So does that mean the Public Inquiry is still to be held? In which case if the otcome is positive the GP could return to Brands anyway?

[Stephen Green]

Sadly I don't think the public enquiry will now take place as Brands Hatch/Octagon decided not to persue the matter. However, if Brand Hatch were to be sold to whoever takes over the rights to the British GP it's feasible it could be resurrected.

[pixie]

Brands Hatch simply doesn't have the infustructure to cope with a F1 GP, and I'm not just talking about current circuit constraints. There is only one road going pass the place, at least at Silverstone you can approach from a couple of directions. The circuit struggles to handle the WSB event each July.

No It is doubtful if you'll ever see F1 there again. Silverstone or nowhere I'm afraid..................and it could well be nowhere in the current financial climate

[chezza]

Lets just hope that the work that is being carried out at the circuits is completed, that can stop Bernie having a pop at the BRDC for the facilities at Silverstone. Also lets hope that a buyer/buyers comes forward as it would be a shame for the GP to disappear from Britain.

[El_Gibleto]

The most important thing is that the 5 circuits involved remain as racing circuits.

Does anyone know if the is a clause in the contract allowing Silverstone to revert to BRDC control if Octogan/Interpublic default on the terms of the lease, that would probably be the best outcome for Silverstone.

[bcobbus]

Being that I'm not too framiliar with Octogan and the tracks they owned, was Donnington among the five or so? What are the five tracks again?

[Piglet]

[i]Does anyone know if the is a clause in the contract allowing Silverstone to revert to BRDC control if Octogan/Interpublic default on the terms of the lease, that would probably be the best outcome for Silverstone. [/B]

That would be a standard term in a lease so I'd imagine so. The performance of the Lease to Octagon was secured by a guarantee from Octagon Worldwide, Jackie Stewart is now quoted as saying it is guaranteed by Interpublic so something has changed slightly there (perhaps OWW is now IP).
I'd be surprised if Octagon defaulted on the lease, more likely that they'll assign it to someone else (will almost certainly require the BRDC's consent and an equivalent guarantee)or they'll buy their way out of it. Either way, that will leave the BRDC having to made a large amount of investment in the circuit (multi million I'd imagine), if they are willing and able to do this.