RE: Circuit of Wales 'unviable' says Silverstone

RE: Circuit of Wales 'unviable' says Silverstone

Tuesday 25th March 2014

Circuit of Wales 'unviable' says Silverstone

UPDATE: Ebbw Vale circuit disputes Silverstone claims with explicit statement of legitimacy



UPDATE 14:00 24/3/14: Unsurprisingly it hasn't taken the Circuit of Wales long to respond to Silverstone's claims of illegal state aid. In a response posted on its website, it was stated that the track qualifies for Government support as it is located 'in one of the poorest areas of the country'.

CEO Michael Carrick added: "We are disappointed to have heard of the content of this letter, it sounds like Silverstone is resistant to investment within the automotive sector which is vital to its continued growth and development in the UK. The suggestion of ' illegal state aid' made by Silverstone also highlights they do not understand the basic process of applying for state funding of this nature."

[Source: CoW]


Original story, as reported 12:00 24/3/14:
It's been a while since anything has been heard about the Circuit of Wales. The Ebbw Vale track development sounded exciting, with motocross and karting as well as the 3.5-mile circuit. But recently progress has been delayed; the directors requiring a big-ticket event such as MotoGP for the circuit before construction could commence.

Today Silverstone further put the boot in, arguing that the project is "unviable" and declaring in a statement that any government financial support for the project would be deemed 'illegal state aid'. "A transfer of state resources would give Circuit of Wales an economic and selective advantage over other circuits," Silverstone management said in a statement. "Silverstone has no objection to competition between UK circuits, but it has to be a level playing field."

The Midlands track pointed out that a similar argument was put forward by the Government when Silverstone was looking for money to help keep the British Grand Prix and expand its Motorsport Valley project. "The application was denied on the basis that this would be classed as illegal state aid," it said.

It also drew comparison between Donington's failed attempted to woo Formula 1 and the Circuit of Wales. "Motor sport at circuit level is not particularly profitable and often loss-making," it said. "It would be unrealistic to suggest Circuit of Wales will be the exception."

More as and when it arrives.

[Sources: Silverstone, Autosport]

Author
Discussion

Mellow7

Original Poster:

219 posts

187 months

Tuesday 25th March 2014
quotequote all
If Harris stopped blowing his cash on Ferrari's every 6 months and invest in this I bet he'd have his name on a corner!

robinessex

11,046 posts

180 months

Tuesday 25th March 2014
quotequote all
Have a word with our continental cousins. They know how to drive a coach and horses through EU rules regarding 'state aid'. Maybe we could put it in the common agricultural policy budget. It's in the countryside after all!

Dazed & Confused

202 posts

203 months

Tuesday 25th March 2014
quotequote all
robinessex said:
Have a word with our continental cousins. They know how to drive a coach and horses through EU rules regarding 'state aid'. Maybe we could put it in the common agricultural policy budget. It's in the countryside after all!
Well done on looking up from your Daily Mail long enough to blame a statement from Silverstone on the EU....

Munter

31,319 posts

240 months

Tuesday 25th March 2014
quotequote all
PW said:
I can't believe they're seeking investment, government investment no less, on the basis of such flimsy numbers and with such fundamental mistakes in their proposal.
I've never made any sense of the numbers. And it's not just attendance. It's the number of units they think they'll attract race teams to exist in.

The whole thing is a farce. It's based around enthusiasm, over common sense.

Arbs

143 posts

174 months

Tuesday 25th March 2014
quotequote all
I'm sure there is a recent millionaire racer about with a few spare million that I'm sure he could throw in. Do you recon they have tapped him up yet?

Howrare

302 posts

205 months

Tuesday 25th March 2014
quotequote all
Any idea how Rockingham managed it? Perhaps a little more depth required here?

storminnorman

2,357 posts

151 months

Tuesday 25th March 2014
quotequote all
Speaking generally, having more circuits around the country is a surely a benefit to motorsport as it widens the interest. Being a motorsport fan all it takes is a good experience to want more - I took a chance on spectating at some hillclimbs and subsequently found myself making trips to Silverstone, Donington and planning trips to rallies and overseas circuits.

With that in mind, Silverstone should welcome the competition and be more supportive of a sport that, in it's own words, struggles to make ends meet. However based on what is posted above, it needs to be done properly and fairly. Donington got bad press for failing to provide for F1 and another failed circuit surely makes british motorsport look like a sick man.

Munter

31,319 posts

240 months

Tuesday 25th March 2014
quotequote all
Howrare said:
Any idea how Rockingham managed it? Perhaps a little more depth required here?
They had an actual series signed up to race on it.

...and I believe made a stonking great loss the likes of which almost closed the place.

Mellow7

Original Poster:

219 posts

187 months

Tuesday 25th March 2014
quotequote all
"Where are the 400,000 odd unaccounted visitors per year coming from?"

Forest of Dean...

framerateuk

2,730 posts

183 months

Tuesday 25th March 2014
quotequote all
Munter said:
The whole thing is a farce. It's based around enthusiasm, over common sense.
I pretty much agree. It would be within a 30 minute drive for me, and I'd love to see it go ahead, but I just can't see it happening.

That said, having spoken to someone in the know, the top people involved are business men, and have no interest at all in motorsport. They must think they have some sort of chance of making their money back if they're willing to pursue it?

Graham

16,368 posts

283 months

Tuesday 25th March 2014
quotequote all
mmm so I suppose having a bloody great duel carriageway built so people can get to your circuit doesnt count as state aid...


Silverstones just pissed as it looks like the new circuit might get motogp from them.

The biggest problems circuits have over there viability is operating restrictions due to noise. if the new circuit could run 7 days a week and have the odd 24hr race it might stand a chance.

Alex Langheck

835 posts

128 months

Tuesday 25th March 2014
quotequote all
Silverstone aren’t happy, ah bless them.

They want government backing for the British Grand Prix – but none is forthcoming. And now this is just making them even more unhappy. They must know the Welsh Assembly already back the UK round of the WRC? So apart from the amount of money involved – what is different from the Welsh Assembly backing this circuit?

P-Jay

10,551 posts

190 months

Tuesday 25th March 2014
quotequote all
Silverstone's reaction to CoW seems all a bit snide to me, but I cannot see how it could ever self-fund itself, no way, no how is it going to get enough bums on seats.

andy97

4,691 posts

221 months

Tuesday 25th March 2014
quotequote all
Anglesey was re-developed partially with an EU grant for a region with special development status (ie one requiring re-generation). Ebbw Vale probably counts as a similar area, but Silverstone won't!

CrutyRammers

13,735 posts

197 months

Tuesday 25th March 2014
quotequote all
P-Jay said:
Silverstone's reaction to CoW seems all a bit snide to me, but I cannot see how it could ever self-fund itself, no way, no how is it going to get enough bums on seats.
Agreed. But it doesn't show Silverstone in a very good light, I don't think.

motoloco

31 posts

164 months

Tuesday 25th March 2014
quotequote all
[quote=Graham]mmm so I suppose having a bloody great duel carriageway built so people can get to your circuit doesnt count as state aid...


I guess you mean the A43? That was built to after a long campaign to take all the heavy traffic between the M1 to M40 off the single carriageway roads that ran through several villages. 365 days a year, not just to alleviate the inconvenience on F1 day. Silverstone's benefit was a lucky coincidence.

bqf

2,226 posts

170 months

Tuesday 25th March 2014
quotequote all
It's hard enough keeping the circuits we have going in Britain - having some mahoosive new circuit in the arse-end of nowhere isn't going to help. Lets face it, Anglesey is hardly making millions every year is it??

The Nurburgring experience shows that motorsport is a minority interest, and trying to broaden the appeal will just fail.

Better to invest in other UK circuits and improve facilities, than open a massive new circuit in Wales, which is very difficult for everyone except the Welsh to get to.

I race for my hobby, and while anglesey is on my calendar I (and many others) will think about going there, simply because it's a PITA to get to. Ebbw Vale wouldn't be any easier I don't think.

I know the Nurburgring is also in the mittel of nowhere but that has a special attraction....

big_boz

1,684 posts

206 months

Tuesday 25th March 2014
quotequote all
Is this not at the bottom of the Brecon Beacons?.....all well and good building a circuit, but if no one can get to it because there are no flipping road going there, what is the point!

Silverstone is just about as central at gets and has major road networks coming from all directions.

Silly

framerateuk

2,730 posts

183 months

Tuesday 25th March 2014
quotequote all
big_boz said:
Is this not at the bottom of the Brecon Beacons?.....all well and good building a circuit, but if no one can get to it because there are no flipping road going there, what is the point!

Silverstone is just about as central at gets and has major road networks coming from all directions.

Silly
It's only 25 minutes from the M4 - dual carriageway the whole way. I make the trip every other weekend.

It's also linked to the M50 by a dual carriageway.

It's very very easy to get to.

lamboman100

1,445 posts

120 months

Tuesday 25th March 2014
quotequote all
big_boz said:
Is this not at the bottom of the Brecon Beacons?.....all well and good building a circuit, but if no one can get to it because there are no flipping road going there, what is the point!

Silverstone is just about as central at gets and has major road networks coming from all directions.

Silly
Ah, Wales... That economic powerhouse with all the best ideas.

I know what we can do to improve her... let's build a high-cost, low-profit racetrack in the one of the rainiest, dampest, un-sunniest parts of Britain... make sure we build on the edge of the main road network and far away from major airports... that should do it ;-)