Donington is Dead - Long live Donington [merged]

[VIVA GT]

I must admit that I'd never given a thought to the fact that the Wheatcroft Family may not have the money to fund the circuit repairs.
In the past (well, years ago) there never seemed to have been a problem, but maybe they're not doing a lot of building nowadays and the circuit had been their major source of income.
Whatever happens, I do hope the circuit is revived, but this will be a lengthy process.

[old man]

AndyS sums the situation for the landlord up in an excellent post. I am personally aware of the fact that banks are currently simply saying "No" to speculative housing development and commercial rents are going down not up, that is a whole different problem for us all and must also be true for KW

Tom's estate will take some time to sort out but he had been ill for some time and probably was pretty well set up where the family inhertance was concerned.

It is just too good a facility to be left to crumble and we must be patient and continue to show positive support, I am sure he or his connections read 10/10ths after the way the rally was promoted.

[andy97]

Originally Posted by VIVA GT

In the past (well, years ago) there never seemed to have been a problem, but maybe they're not doing a lot of building nowadays and the circuit had been their major source of income.

Thats my assessment (educated guess)

One rumour I have heard locally is that DHL (or the airport or both together) have made the Wheatcrofts a very substanial offer for the land but it has been turned down for the moment in the hope that a motorsport developer will come up trumps. I have resisted posting this info on here for a while but how long will the Wheatcrofts wait for?

I am not sure if I believe the rumour as, operationally, a depot at DP would not be of much sense when DHL already has a depot on the airport site that allows the diect delivery of parcels, sorting and loading directly on to aircraft but you never know.

[AndyS]

When a big chunk of land like this comes up there will always be speculative interest for the freehold. It depends on whether the Wheatcroft's are looking to maximise their earnings or want motorsport on the site. If they want to maximise their earning's then selling the site would probably be the way to go. By the time they've incentivised a new leaseholder it would be at least a couple of years before the rent earned came up to the level of a sale price, probably longer with the type of deal they are likely to have to do. The freehold would be worth more once the market recovers, but if they are clever they would build in claw backs should anybody develop the site and make a fortune out of it. Their intention would seem to be to protect the venue, therefore I guess the negotiations are bogged down in legals and sorting out the finer points of any incentives, stepped rents, rent review patterns, gaurantees and bonds. I deal with this kind of thing on a smaller scale day in day out and it can be painful sometimes!

[Piglet]

The Save Donington campaign was never going to achieve anything other than some additional income for the Wheatcroft & Son Ltd. No serious motorsport operator was going to enter into a multi million pound long term deal on the basis of car enthusiasts turning out on a Sunday afternoon to an autojumble. Some of us mentioned this at the time and were accused of being negative!

Funding will be a huge issue, to get to a decent state the Circuit needs a lot of investment over and above the immediate reconstruction work. The Paddock buildings are well past their useful lifespan and the pit lane is really problematic for international level car racing. A tenant doesn't get the long term benefit of that sort of investement so why would they want to put millions of pounds into the infrastructure of the premises? They will only do it if the rent is low enough and from what I hear that isn't the deal that the Landlord wants to do.

I would suggest that the comments in January and February indicated that the LL had a tenant "on the hook" but the comments in March lead me to think that the deal fell away.

I don't think they are "dotting i's and crossing t's" as is suggested. A deal will be done in principal to produce Heads of Terms, the lawyers will then work on the paperwork. I suspect if they were at HoT stage we would know about it.

Unfortunately I think it's too late for anyone to get the place up and running for this year and that will effect anyone's enthusiasm for doing a deal now.

[AndyS]

From my experience, I think it unlikely they would say much until a deal was actually done. Telling people at Heads of Terms stage can leave you with a lot of egg on your face if it doesn't happen. You can sometimes end up issuing multiple heads of terms before a deal is actually done. Heads is often only a basic agreement, a lot can come up afterwards. From what I am seeing on here it sounds like there are parties there but it's the finer points of the agreement that are holding things up. As they say the devil's in the detail and this can quite often be the death of a deal. I think you're right in saying we're unlikely to see anything racing this year. The focus has to be on next year really.

[kimbo]

Originally Posted by VIVA GT

I must admit that I'd never given a thought to the fact that the Wheatcroft Family may not have the money to fund the circuit repairs.
In the past (well, years ago) there never seemed to have been a problem, but maybe they're not doing a lot of building nowadays and the circuit had been their major source of income.
Whatever happens, I do hope the circuit is revived, but this will be a lengthy process.

I refer to my post of 3rd March

Originally Posted by kimbo

Being reported in Classic & Sportscar that parts of the Grand Prix collection have / are being sold off. Not sure what if any relevance this has to the circuit, but even so, not good.

Kim.

Co-incidence?
Lets hope so.
Forgive me if I don't hold my breath whilst waiting for the circuit to re-open!

Kim.

[Delenn]

I have another suggestion for you.

My step-brother works for an architect. He has just been involved in a massive marina complex design. The marina is over 95% pre-let, and yet, the builders still cannot borrow the money to build it. Yes folks, the banks are not lending to sure fire bets, so would they lend to a motor racing venue operator, even an established one?

There are loads of potential reasons for this not happening yet. Everyone cross everything!

[Tim the Grey]

I would be surprised if the Wheatcrofts lacked money, but not surprised if they lack cash... Everything may be tied up in long term investments and income generators, so not available for a quick grab...
Plus it may have to wait for Tom's estate to be settled before they can legally access any of it...

[RCMADD]

i think with regards to a new lease holder announcement,, we will just have to wait,,and wait,,and wait.

[Rudernst]

I have heard that Tom Wheatcroft ordered several pre war Mercedes GP W125 replicas from Crosswathe & Gardiner before his death for what must have been a great deal of money. He actually mentions that in his autobiography.
The original ideas must have been to sell some of them.
The story goes that none has been sold yet, which means money must be generated to pay the bills coming in from C&G.
This is supposed to be one of reasons behind selling off the collection.

Sounds convincing to me.

R.E.

[privateer]

You have to watch the advert first!!


http://link.brightcove.com/services/player/bcpid1119137831?bctid=71000393001

[blueoval2]

I never realised how bad the circuit looked just shocking to see the state of the place.

[Peat]

It looks awful, yes. But i fail see how with the right investment, that it could'nt be up and running again within at least a month.

[Tim Falce]

Apart from the bits that are dug up and the ****up by where the new tunnel is it doesn't look too bad. Yes the infield has been butchered but hopefully we don't drive that so get a few bags of grass seed and a tractor that could be sorted in a day or two. It just needs time on the track.

[grantp]

The infield isn't that much worse than it was after Gillett created the 2 event MotoX track.

Having been left so long the new tunnel is bound to be a problem since it was never completed.

The longer it is all left the more of a challenge it will be, especially if it goes though another winter without attention.

Signs at the entrance suggest there is now a Motor Caravan business operating from the facility somewhere. I may need to pay a visit to suss it out.

Edit:

Er, managed to sort of suss it out on line. I think.

http://www.caravanmotorhomesales.co.uk/2010/03/

[dyewat808]

Originally Posted by Peat

It looks awful, yes. But i fail see how with the right investment, that it could'nt be up and running again within at least a month.

Thats the problem. Who's gonna want to invest in it now?

The whole business is really sad. We don't need to lose yet another racing circuit - it does very little for series like the BTCC. If F1 hadn't come in and butchered the track for Bernie's detestable wants, it may still be here.

Its a disgusting and bitterly disappointing way to see a circuit go.

[Lancsbreaker]

Originally Posted by dyewat808

Thats the problem. Who's gonna want to invest in it now?

Well, when my numbers come up in the double rollover this weekend I'll offer to pay for the track repairs if we can get racing back on the circuit......might need a few free entries to compensate, tho.....

[NICK ALLISON]

How about a public subscription to say at £100.00 per share to raise £2 million to repair the basic infrastructure and get things moving.If not enough is raised you get the money back .If it is successful then everyone owns a £100.00 share . BARC or MSVR to run it. There has to be enough competion licence holders ,entrants , marshals and enthusiasts to raise this money£2 million needs 20,000 people at £100.00 a go. Could always lease to a car manufacturer (like Mercedes at Brooklands ) as their own test track (VW owned Bentley in Derby for example )and combine it with commercial motorsport and track days .l

[Lancsbreaker]

Nice idea....but according to the 2009 MSA report in 2008 there were 10313 Race licence holders, and 1715 Speed licence holders.....even if all of them joined up you'd still be some way short......

[White flag man]

I think that's a great idea. You could go the the British GP and have a collection there aswell, as it is the mess that's left of Donington that has allowed those people to see the GP at Silverstone. Also, if you go to any BTCC meeting, you'll see at least 20,000 marshals there!
If I won big on the lottery you'd have your £2 millon. I'll try again this Friday.

[Woolley]

Originally Posted by White flag man

You could go the the British GP and have a collection there aswell

Make sure you stick the bucket under Bernie's nose while you're at it. Kneel down if necessary, just make sure he realises the consequences of his actions.

[VIVA GT]

Originally Posted by NICK ALLISON

How about a public subscription to say at £100.00 per share to raise £2 million to repair the basic infrastructure and get things moving.If not enough is raised you get the money back .If it is successful then everyone owns a £100.00 share . BARC or MSVR to run it. There has to be enough competion licence holders ,entrants , marshals and enthusiasts to raise this money£2 million needs 20,000 people at £100.00 a go. Could always lease to a car manufacturer (like Mercedes at Brooklands ) as their own test track (VW owned Bentley in Derby for example )and combine it with commercial motorsport and track days .l

Nick, I think you'll find it was another famous car (well, aero engine) company in Derby - Rolls Royce! But I do like your idea.

[mickey29]

Originally Posted by White flag man

I think that's a great idea. You could go the the British GP and have a collection there aswell, as it is the mess that's left of Donington that has allowed those people to see the GP at Silverstone. Also, if you go to any BTCC meeting, you'll see at least 20,000 marshals there!
If I won big on the lottery you'd have your £2 millon. I'll try again this Friday.

It is the failure of Donington Management only. The spectators have suffered enough with the exorbitant ticket fees forced on them by FOM charges to Silverstone.

The only people responsible for the mess at Donington are Simon Gillett and FOM. It is a private enterprise and the only way that it can be rescued is with a very high level of private investment.

A well meaning fan/driver lead charity-a-thon will leave us with a poor circuit in need of updating AND STILL NO MONEY TO DO IT.

Donington is a moneypit and it will require far more money than a whip round will provide.

[Dave Brand]

Originally Posted by NICK ALLISON

(VW owned Bentley in Derby for example )

Bentley moved to Crewe in 1946!