RE: Mallory Park's future in doubt
Discussion
Sad times
MALLORY PARK MOTORSPORT LIMITED TO BE PUT INTO ADMINISTRATION
It is with great regret that Mallory Park Motorsport Limited has today announced that the company has been put into Administration.
Mallory Park has been operating as a motorcycle and car race circuit for many years and has much history attaching to the circuit. In 1985 a highly restrictive Noise Notice was attached to Mallory Park Motorsport Limited ('MPML') embracing all circuit activities but, significantly, a number of the provisions within the Notice were very much open to interpretation.
MPML has enjoyed a long and fruitful relationship with Hinckley & Bosworth Borough Council over the years and a level of understanding had been established to work within the 1985 Notice. Regrettably, however, this arrangement was placed under scrutiny by local residents some of whom were new to the village, who made representations to HBBC to apply the rigid interpretation of the 1985 Notice.
MPML and the local authority worked extremely hard with the residents to find a compromise solution but, unfortunately, the council decided to prosecute MPML on five charges of the Notice during 2012 which involved operating on a Saturday over and above the four days agreed in the Notice. The court hearing took place in August 2013 and ruled that MPML was guilty of this breach on the five occasions, but MPML was given the right to take the establishment rights of the 1985 Notice to a higher court.
The immediate implication of the Court decision was to oblige MPML to observe the provision of the 1985 Notice, which allows only for 40 days racing on Sundays per annum (but with a dispensation to allow four Saturdays per annum) and testing on Wednesdays. MPML was accordingly obliged to cancel all track day operations, resulting in a significant loss of income (a situation also felt by local businesses and local employers) and use of the track for local community activities - young driver training etc. Overall, the imposition of such restrictions has inevitably led to MPML having a financially unstable business plan.
Following the Court case, MPML immediately implemented the highly restrictive conditions of the 1985 Notice, thus effectively reducing the circuit activity to two days per week. Significant losses were being incurred which no business can sustain. It was clear that a more dynamic approach needed to be taken to overcome the significant hurdles and two weeks ago MPML developed an innovative three stage Recovery Plan to take Mallory forwards which would hopefully meets the wishes of the residents and form the basis of a viable business.
Very constructive dialogue was held with the Leader of HBBC and senior officials and we were receiving very encouraging reactions from them to the Plan. A fundamental component of the Plan was the agreement of the Land Owner to reduce the annual lease rental, which had risen by over 40% over the last eight years and had reached untenable levels. Very regrettably, despite intense work by the MPML board, the Land Owner - Titan Properties Ltd - refused to make a substantive offer to allow the Recovery Plan to proceed.
British Automobile Racing Club were keen to support MPML (and did so up to the final race meeting yesterday by paying for certain essential supplies allowing the meeting to place) and indeed would have supported MPML to ensure all its trade creditors were paid. To that end, it needed the support of the Landlord with a sustainable rent but, regrettably, this was not possible to achieve.
Accordingly, having no firm visibility into 2014 and beyond, MPML directors had no option but to place the company into Administration.
The administrator, Ian Robert of Kingston Smith & Partners LLP, commented: “I will be working with all the stakeholders to ensure that Mallory Park will see racing again. I hope the administration process can assist in finding a solution which will be beneficial to all parties concerned.”
He continued: “To that end, I will be negotiating with the landlord and the council, with the support of the BARC, to ensure that racing can be enjoyed at Mallory Park for years to come. Although it is early days, I am hopeful that, once a solution to the lease is found, all of the company’s creditors should receive a substantial dividend, which I understand is very much the driving force behind the continued support of the BARC.”
MALLORY PARK MOTORSPORT LIMITED TO BE PUT INTO ADMINISTRATION
It is with great regret that Mallory Park Motorsport Limited has today announced that the company has been put into Administration.
Mallory Park has been operating as a motorcycle and car race circuit for many years and has much history attaching to the circuit. In 1985 a highly restrictive Noise Notice was attached to Mallory Park Motorsport Limited ('MPML') embracing all circuit activities but, significantly, a number of the provisions within the Notice were very much open to interpretation.
MPML has enjoyed a long and fruitful relationship with Hinckley & Bosworth Borough Council over the years and a level of understanding had been established to work within the 1985 Notice. Regrettably, however, this arrangement was placed under scrutiny by local residents some of whom were new to the village, who made representations to HBBC to apply the rigid interpretation of the 1985 Notice.
MPML and the local authority worked extremely hard with the residents to find a compromise solution but, unfortunately, the council decided to prosecute MPML on five charges of the Notice during 2012 which involved operating on a Saturday over and above the four days agreed in the Notice. The court hearing took place in August 2013 and ruled that MPML was guilty of this breach on the five occasions, but MPML was given the right to take the establishment rights of the 1985 Notice to a higher court.
The immediate implication of the Court decision was to oblige MPML to observe the provision of the 1985 Notice, which allows only for 40 days racing on Sundays per annum (but with a dispensation to allow four Saturdays per annum) and testing on Wednesdays. MPML was accordingly obliged to cancel all track day operations, resulting in a significant loss of income (a situation also felt by local businesses and local employers) and use of the track for local community activities - young driver training etc. Overall, the imposition of such restrictions has inevitably led to MPML having a financially unstable business plan.
Following the Court case, MPML immediately implemented the highly restrictive conditions of the 1985 Notice, thus effectively reducing the circuit activity to two days per week. Significant losses were being incurred which no business can sustain. It was clear that a more dynamic approach needed to be taken to overcome the significant hurdles and two weeks ago MPML developed an innovative three stage Recovery Plan to take Mallory forwards which would hopefully meets the wishes of the residents and form the basis of a viable business.
Very constructive dialogue was held with the Leader of HBBC and senior officials and we were receiving very encouraging reactions from them to the Plan. A fundamental component of the Plan was the agreement of the Land Owner to reduce the annual lease rental, which had risen by over 40% over the last eight years and had reached untenable levels. Very regrettably, despite intense work by the MPML board, the Land Owner - Titan Properties Ltd - refused to make a substantive offer to allow the Recovery Plan to proceed.
British Automobile Racing Club were keen to support MPML (and did so up to the final race meeting yesterday by paying for certain essential supplies allowing the meeting to place) and indeed would have supported MPML to ensure all its trade creditors were paid. To that end, it needed the support of the Landlord with a sustainable rent but, regrettably, this was not possible to achieve.
Accordingly, having no firm visibility into 2014 and beyond, MPML directors had no option but to place the company into Administration.
The administrator, Ian Robert of Kingston Smith & Partners LLP, commented: “I will be working with all the stakeholders to ensure that Mallory Park will see racing again. I hope the administration process can assist in finding a solution which will be beneficial to all parties concerned.”
He continued: “To that end, I will be negotiating with the landlord and the council, with the support of the BARC, to ensure that racing can be enjoyed at Mallory Park for years to come. Although it is early days, I am hopeful that, once a solution to the lease is found, all of the company’s creditors should receive a substantial dividend, which I understand is very much the driving force behind the continued support of the BARC.”
Anyone care to precis precisely what the issue is here?
I hate to see motorsport venues close. In general, I have no time at all for people who move to live near a race track and then complain about the noise.
So what is the root cause here? Bad management of the track? Unreasonable new NIMBY's moving in?
Or both?
Is there a feasible way that the track can continue under new management?
Or has the local council effectively killed the place off, with little hope of the local community supporting it?
I hate to see motorsport venues close. In general, I have no time at all for people who move to live near a race track and then complain about the noise.
So what is the root cause here? Bad management of the track? Unreasonable new NIMBY's moving in?
Or both?
Is there a feasible way that the track can continue under new management?
Or has the local council effectively killed the place off, with little hope of the local community supporting it?
Scuffers said:
correct me if I am wrong, but MALLORY PARK MOTORSPORT LIMITED does not own the cct.
I assume all that this is the operating company going tit's up.
(and thus assume a new one will surface shortly - and with luck, will stick to the ccts approved number of days etc?)
Has everyone lost the ability to read a press release?I assume all that this is the operating company going tit's up.
(and thus assume a new one will surface shortly - and with luck, will stick to the ccts approved number of days etc?)
Press release said:
The administrator, Ian Robert of Kingston Smith & Partners LLP, commented: “I will be working with all the stakeholders to ensure that Mallory Park will see racing again. I hope the administration process can assist in finding a solution which will be beneficial to all parties concerned.”
He continued: “To that end, I will be negotiating with the landlord and the council, with the support of the BARC, to ensure that racing can be enjoyed at Mallory Park for years to come. Although it is early days, I am hopeful that, once a solution to the lease is found, all of the company’s creditors should receive a substantial dividend, which I understand is very much the driving force behind the continued support of the BARC.”
He continued: “To that end, I will be negotiating with the landlord and the council, with the support of the BARC, to ensure that racing can be enjoyed at Mallory Park for years to come. Although it is early days, I am hopeful that, once a solution to the lease is found, all of the company’s creditors should receive a substantial dividend, which I understand is very much the driving force behind the continued support of the BARC.”
I think the point is, that it may well be that new operators could step forward, but are they wasting their time in the face of opposition from local people and the council that will just make it too much hassle?
They'll be 5000 houses and a bloody big Asda on the sight inside a decade unless a way is found for a circuit to remain viable.
They'll be 5000 houses and a bloody big Asda on the sight inside a decade unless a way is found for a circuit to remain viable.
toppstuff said:
I think the point is, that it may well be that new operators could step forward, but are they wasting their time in the face of opposition from local people and the council that will just make it too much hassle?
They'll be 5000 houses and a bloody big Asda on the sight inside a decade unless a way is found for a circuit to remain viable.
If you've followed the story, there isn't that much opposition to the circuit owners operating within the 1985 agreement, the 'current' operators apear to have disregarded that and built a business model based on many more days of operation than were in that agreement, and now believe that they cannot run the place under any other circumstances....another operator may well be able to.They'll be 5000 houses and a bloody big Asda on the sight inside a decade unless a way is found for a circuit to remain viable.
Pothole said:
If you've followed the story, there isn't that much opposition to the circuit owners operating within the 1985 agreement, the 'current' operators apear to have disregarded that and built a business model based on many more days of operation than were in that agreement, and now believe that they cannot run the place under any other circumstances....another operator may well be able to.
I will confess that I am not clued up on the details.So, this 1985 agreement, how much motorsport and at what db levels does it allow for, if I may ask someone to précis it?
toppstuff said:
Pothole said:
If you've followed the story, there isn't that much opposition to the circuit owners operating within the 1985 agreement, the 'current' operators apear to have disregarded that and built a business model based on many more days of operation than were in that agreement, and now believe that they cannot run the place under any other circumstances....another operator may well be able to.
I will confess that I am not clued up on the details.So, this 1985 agreement, how much motorsport and at what db levels does it allow for, if I may ask someone to précis it?
Pothole said:
If you've followed the story, there isn't that much opposition to the circuit owners operating within the 1985 agreement, the 'current' operators apear to have disregarded that and built a business model based on many more days of operation than were in that agreement, and now believe that they cannot run the place under any other circumstances....another operator may well be able to.
Depends how much the rent has been put up over the years though really...If a landlord thinks his site is worth more for say houses etc and decides that as a racing circuit it wants to realise the same return as that of prime development land then the place subject to planning could be scuppered...Ruthless landlords often use this method as a tactic for changing land use and planning
consents. Could be a lot of tactics at play and whilst 3 days a week may suit 1 business model it may not now if the rent has been jacked up!!
heightswitch said:
Pothole said:
If you've followed the story, there isn't that much opposition to the circuit owners operating within the 1985 agreement, the 'current' operators apear to have disregarded that and built a business model based on many more days of operation than were in that agreement, and now believe that they cannot run the place under any other circumstances....another operator may well be able to.
Depends how much the rent has been put up over the years though really...If a landlord thinks his site is worth more for say houses etc and decides that as a racing circuit it wants to realise the same return as that of prime development land then the place subject to planning could be scuppered...Ruthless landlords often use this method as a tactic for changing land use and planning
consents. Could be a lot of tactics at play and whilst 3 days a week may suit 1 business model it may not now if the rent has been jacked up!!
Mallory is a fantastic little circuit as well. Another case of people moving next to a motor circuit and then proceeding to complain about it.. can't describe how angry it makes me feel Well done to the f
king nimbys. Another piece of British motorsports heritage gets destroyed because of their stubborn ignorance.
It was a race track before most of you were born. It was a racetrack before any of you lived there. So why are you so fking surprised it got used as a fking racetrack?
king nimbys. Another piece of British motorsports heritage gets destroyed because of their stubborn ignorance.It was a race track before most of you were born. It was a racetrack before any of you lived there. So why are you so f
king surprised it got used as a fking racetrack?Always hard when you only have 1 version of events. The press release is from the management company - who have now gone bust.
But it looks as though they had paid for rent increases by interpreting the agreement quite loosely. They have been challenged on that by local residents and the business model is now unsustainable. A new tenant will either have to find a business model which works with the rent as it is, or the landlord will have to set the rent at a level which is sustainable on fewer days racing.
I suspect that much of that will depend who paid for the resurfacing! If the landlord paid then I would have thought they would want it kept as a racetrack having invested so much into it. If the management company did so, and the track owner isnt liable to the bill then they might be less concerns about exactly what happens to it.
But it looks as though they had paid for rent increases by interpreting the agreement quite loosely. They have been challenged on that by local residents and the business model is now unsustainable. A new tenant will either have to find a business model which works with the rent as it is, or the landlord will have to set the rent at a level which is sustainable on fewer days racing.
I suspect that much of that will depend who paid for the resurfacing! If the landlord paid then I would have thought they would want it kept as a racetrack having invested so much into it. If the management company did so, and the track owner isnt liable to the bill then they might be less concerns about exactly what happens to it.
I live about 3 miles from Mallory to the NE and I know people who live in the village
it is down to a vocal minority who just don't want the circuit to be active at a level that will sustain a viable circuit
but on the upside I will have plenty of work when Titan Properties Ltd (who are a property developing company) either sell up for housing or develop the site themselves.
so well done nimbys you have years of building development to look forward to at worst and at least a huge desolate open space smack bang in the middle of your village that the scallies from earl shilton will love racing around of dirt bikes ,I for one cant wait for the 3.174keys to move in you can have the lot from the good Friday site at bagworth.
it is down to a vocal minority who just don't want the circuit to be active at a level that will sustain a viable circuit
but on the upside I will have plenty of work when Titan Properties Ltd (who are a property developing company) either sell up for housing or develop the site themselves.
so well done nimbys you have years of building development to look forward to at worst and at least a huge desolate open space smack bang in the middle of your village that the scallies from earl shilton will love racing around of dirt bikes ,I for one cant wait for the 3.174keys to move in you can have the lot from the good Friday site at bagworth.
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