Nurburgring on the brink

[Rob]

Circuit could be declared bankrupt according to reports
Last Updated: July 18, 2012 10:07am

The Nurburgring could be on the brink of administration according to reports in Germany, after the circuit was refused a bail out from the European Union.

The state government owns around 90% of the Nurburgring's holding company, Nurburgring GmbH, and leased the circuit to Nurburgring Automotive GmbH in a deal lasting until 2040.

The Social Democratic Party invested around €500million in redeveloping the circuit and improving facilities over the last decade, but, having lost their majority at the last election, will not invest anymore.

According to reports in the German media, the circuit's holding company also owes over €300million to the state owned Bank of Rhineland-Palatinate. Newspaper Rhein-Zeitung says the application to the EU for €13million was to service interest on the loan.

Formula 1 is due to return to the Nurburgring next year as part of its deal to alternate the German Grand Prix with Hockenheim, which hosts the race this weekend.

However, with no money available to pay race hosting fees at the Nurburgring, and Hockenheim already stating they cannot afford to host the race each year, the future of the German Grand Prix could be in doubt.

http://www.skysports.com/story/0,,12040_7909246,0.html

[sav_pap]

All about money again...
It's annoying how money can change the standards and left a historical sircuit out of the F1 Calendar.
It's a shame because the layout of the track has been loved by many of the current F1 drivers.

[ferrari4life]

money is what makes monaco a supposedly great race.. When i think its one of the stupidest car display processions of the year.

Its unfortunate that money is where its at.
They should implement some cost sharing deal like the NFL does.

[JONNY F.2008]

well maybe they can alternate with spa instead of the french......

[REDARMYSOJA]

well maybe they can alternate with spa instead of the french......

They already alternate with Hockenheim. Sounds like this is just about the new F1 standards circuit, not the old original section.

[Tobes]

This has sadly been on the cards for some time, the prices at The Nordschleife have doubled and doubled again to help service the debt of The Nurburgring, the govt spent millions of €'s on the new facilities that are virtually unused 50 weeks of the year...

Have a look here...

http://savethering.org

:-s

[Tifoso]

Very, very sad. :-s

[Giallo 550]

This is extremely unfortunate. I have no issue with new tracks, but they shouldn't come at the expense of classic circuits.

[Hornet]

With the economy situation, Mr Bernie needs to rethink the fees, if he is still capable of thinking straight at all.

They keep finding ways to cut cost in Formula 1, with all sort of limits and rule changes. Yet the hosting fee never go down? Something is not right.

[sav_pap]

A1 Ring was one of my favourite. Hope Nirburgring to have better luck.

[Sianellen]

Future of Nürburgring in doubt as Formula One venue faces insolvency

http://www.guardian.co.uk/sport/2012/jul/18/nurburgring-formula-one-venue-insolvency

The future of Germany's Nurburgring is in doubt as it faces possible insolvency.

The future of one of Germany's two Formula One grand prix venues is uncertain as the Nürburgring faces possible insolvency. The news was confirmed on Wednesday at a press conference in Mainz by Kurt Beck, the state governor for the Rhineland-Palatinate area.

According to reports, Nürburgring GmbH, which operates the 90% state-owned circuit situated 35 miles west of Koblenz, owes the Rhineland-Palatinate bank around £235m for redevelopment in 2009.

Despite applying to the European Union's Executive Commission for an emergency loan of £10m to cover interest repayments, that is not expected to be granted. That has forced the state to act, with Beck remarking there was now a "high probability of insolvency at the end of the month due to a lack of liquidity".

The Nürburgring stages the German Grand Prix on a rotational basis with Hockenheim, the scene of this weekend's race. However, the uncertainty surrounding the track would appear to put their hosting of next year's event in jeopardy.

Hockenheim's owners had previously suggested they could no longer afford to stage the grand prix on an annual basis. The managing director, Georg Seiler, has now suggested, though, it could potentially do so if certain conditions were met.

Speaking to Auto Motor und Sport, Seiler said: "At present there is no request. But if there is one, I do see a possibility that F1 comes back every year at Hockenheim.

"But then everything would have to be agreed: the cost side, the contract, the policy and much more. I do not know if this is all so easy to fulfil. Still, we would be happy if we would continue the alternation."

[sav_pap]

Nirburgring is also in the middle of nowhere, hidden in the German nature.
So if Monsieur Bernie or the locals who are in charge want to help and save the circuit, they could invest and build some facilities (hotels, casinos, parks, stores etc...) to make Nirburgring an attractive destination. Earnings could be shared to the investors and all would be happy.
Germany is a very, very, very wealthy country with heavy industry and huge gross national income. I wonder how they left and took no advantage of it yet.

[Rob]

Nurburgring gets financial boost from local government
By Jonathan Noble Friday, August 3rd 2012, 09:56 GMT

The Nurburgring's hopes of holding the German Grand Prix next year have been boosted following local government intervention to help the financially beleaguered circuit.

Following weeks of uncertainty about the fate of the famous track, which was facing bankruptcy on the back of a failed revamp project, it has now secured the finances it needed to move forward.

The Rhineland-Palatinate's state legislature has approved 254 million Euro to help guarantee a 330 million Euro loan that was handed to it for the circuit improvements.

Although the track is not yet totally in the clear, the local government intervention should give it the breathing space to sort out its financial situation.

Nurburgring track boss Jorg Linder was quoted as saying by the Frankfurter Allgemeine Zeitung newspaper: "I am very optimistic that formula one will be going to the Nurburgring next year."

F1 supremo Bernie Ecclestone warned last week that if the Nurburgring's troubles were not sorted out then he would move the German GP to Hockenheim in 2013 - but he did want to try and help the venue out.

"We are talking to them, so will see," he told AUTOSPORT. "I wouldn't want either of them to go bust. We need to keep the German race - so we have to do the best we can."

http://www.autosport.com/news/report.php/id/101699

[Kiwi Nick]

I fear that this sort of failure will become more and more common as governments see that subsidizing F1 racing is a losing proposition. F1 sucks so much money out of the events that they are almost always financial negative. Who can afford to promote and/or subsidise Sir Bernard's traveling circus? Monarchies (Monaco, Bahrain, Abu Dhabi), despotic governments (China), countries hoping to be recognized on the world stage (Hungary, Malaysia, Korea) and groups of individuals who love the sport and have money to lose (USA, GB). If Sir Bernard took less, F1 would be more stable. The USGP at Indianapolis is a good example; the George family finally told Bernie to shove it, they can make more money with less hassle by working with Indy Car, NASCAR and Moto GP.

[scuderiaferrari]

Shame because its a nice circuit.

[SilverSpeed]

Yeah agreed and every now and then I myself drive on the legendary Nordschleife!

Good news and hopefully they kick lindner out!

[Tobes]

Nirburgring is also in the middle of nowhere, hidden in the German nature.
So if Monsieur Bernie or the locals who are in charge want to help and save the circuit, they could invest and build some facilities (hotels, casinos, parks, stores etc...) to make Nirburgring an attractive destination. Earnings could be shared to the investors and all would be happy.
Germany is a very, very, very wealthy country with heavy industry and huge gross national income. I wonder how they left and took no advantage of it yet.

Not been there recently then...?

It's because they built all the new hotels, restaurants, Ring Casino (which is rubbish), and the roller coaster, Ring Works etc that they owe all the money...

It's really smart there...

[Rob]

NURBURGRING EYES 'LONG' GRAND PRIX CONTRACT
Tuesday 21 August at 07:35 : Aug.21 (GMM)

The Nurburgring's current financial problems do not mean the German circuit has no future on the F1 calendar.

That is the claim of the fabled venue's boss Jorg Lindner, who said the company headed by himself and Kai Richter have a lease on the Nurburgring until 2040.

"I intend to fulfil it," he is quoted by the Rheinische Post newspaper.

The Nurburgring has entered an insolvency process, but Lindner said talks with F1 chief executive Bernie Ecclestone remain on track.

"Everyone is talking about Mr Ecclestone, but nobody except us is talking to Mr Ecclestone," said Lindner, who revealed he had a meeting in London recently with the 81-year-old Briton.

The topic, he said, was a formula one race contract.

"Specifically, we are aiming for a long term relationship, not only for the season 2013," Lindner insisted.

"The receivers have given us an assurance that agreements we make with Mr Ecclestone need to be a part of the (insolvency) proceedings.

"Naturally, a sale would have a higher value with a formula one contract," he said.

http://www.onestopstrategy.com/dailyf1news/nieuw/article/17892-Nurburgring+eyes+%27long%27+grand+prix+contract.ht ml