Friday 31st October 2014

Nurburgring sold (again)

Russian billionaire Viktor Kharitonin reportedly buys controlling share in Nurburgring

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The Nurburgring seemingly has a new owner, as Russian billionaire Viktor Kharitonin has reportedly swooped into the void left by a struggling Capricorn. So says respected German business weekly Wirtschafts Woche.

The state of Capricorn's finances have been a big question ever since the first day they were named owners incumbent by the state government. Recently it was widely reported that Capricorn boss Robertino Wild was in financial dire straits, with accusations of his property and art collection being mortgaged twice over.

Just to recap, Capricorn and Getspeed were in a partnership to buy the 'ring for a deal worth around 77m euros. Capricorn being the senior, two-thirds, partner in the agreement. It's this senior part of the deal that Kharitonin is understood to have bought into.

Dark clouds lifting at last? Possibly...

The first part payment of 5m euros was paid earlier in the year by the junior partner, Getspeed. But with more payments deadlined for tomorrow and December, and Getspeed being visited by state Bailiffs last month, it seemed like only a miracle could save the controversial deal controversial deal. But as Wirtschafts Woche reports in the article linked above, Kharitonin has made the payments due both this month and in December.

In the very short-term sense, this news comes as a relief, because in the worst-case scenario, the Nurburgring might have closed with immediate effect had Capricorn or Getspeed not made the next payment. The state had already made noises to say it wasn't going to pay the day-to-day running costs of the 'ring or the wages of its staff. Most locals and regulars find it hard to believe that this could be good for the 'ring in the long-term though.

"It's the worst case come true," says Mike Frison, long-time Nurburgring fan and the campaigner behind the Save The Ring movement. "So many times the administrators and politicians kept saying that the 'ring would be taken care of. That it would never fall into the hands of some Russian oligarch. Never trust a politician. Q.E.D. For me it's so sad to be right again."

It's Kharitonin's firm NH Holding that has taken control of Capricorn's stake, and therefore the whole Nurburgring. Kharitonin made his personal fortune alongside more well-known countrymen Roman Abramovich and Evgeny Shvidler in Pharmstandard. His petrolhead habit is largely unreported, but he does appear in the entry list for the Mille Miglia. In nothing less than a 1935 Mercedes-Benz 500K.

Considering he apparently just spent around over £30m on a couple of flats in London, it might not be surprising that he just bought control of, arguably, the world's greatest race track for a few million more...

[Sources: Wirtschafts Woche, Bild.de, Forbes, 1000Miglia.it, BusinessInsider]

 

[NIgt3]

Absolute farce, the state and politicians should hang their heads in shame at 1. How it got to this in the first place 2.the way the sales been handled.

[agtlaw]

Looking forward to the dashcam footage.

[Willy Nilly]

Looking forward to the title

[redroadster]

One minute the Russians are blowing up planes with innocent people next they are treating themselves to a nice race track cushty.

[Motorrad]

The Nurburgring has been a shadow of it's former self for a long time now. This doesn't make any difference.

Expect higher prices, more closures, less fun.

[Ursicles]

Glad I've driven it a few times in the past because at the moment the allure of the place is def slipping.

[ess]

"Russian billionaire buys <INSERT HERE>"
Sounds familiar.

Sure it will end happily ever after.
Money, sense etc

[Kolbenkopp]

NIgt3 said:

Absolute farce, the state and politicians should hang their heads in shame at 1.

Agree. But it's somehow to be expected, given the politicians at Länder (and lower) levels here.

E.g. Rhineland-Palatinate's current minister of economics (Green Party). Born in 64, she trained as multilingual personal assistant first, then did an apprenticeship in wholesale and export trades. After that, 4 years work experience as a personal assistant. Then family time and part time economics student. After that 5 years as a clerk for the Green Party.

That's all perfectly honest and fine. But just does not cut it for the amount of power these people have (IMO). You end up with *very* naive characters being in charge here as long as they play their political career right and have a bit of luck.

[Kolbenkopp]

@Dale: appreciate the article, the research and the linking of original German sources. Grim topic, but at least in depth quality info. Vielen Dank!

[F1GTRUeno]

Well Abramovich actually seems like a decent owner of Chelsea but the oligarch's don't have an amazing track record (hurrr) with buying things and handling them properly.

[Jewelly_Boy]

I think people are being slightly harsh on the Ruskies, probably because hardly any of you have any experience of them other than what you read in the paper which is probably 80% lies.

Having dealt with one daily for 12 months, they really aren't that bad and are actually quite generous.

[Motorrad]

Jewelly_Boy said:

I think people are being slightly harsh on the Ruskies, probably because hardly any of you have any experience of them other than what you read in the paper which is probably 80% lies.

Having dealt with one daily for 12 months, they really aren't that bad and are actually quite generous.

Yes, we're all Daily Mail reading stupid folk from outside that there London so we really have no experience of nasty foreign folk.

[greygoose]

Jewelly_Boy said:

I think people are being slightly harsh on the Ruskies, probably because hardly any of you have any experience of them other than what you read in the paper which is probably 80% lies.

Having dealt with one daily for 12 months, they really aren't that bad and are actually quite generous.

Your sample size of one Russian has certainly made me reconsider the goings on in Ukraine.

[SLCZ3]

Jewelly_Boy said:

I think people are being slightly harsh on the Ruskies, probably because hardly any of you have any experience of them other than what you read in the paper which is probably 80% lies.

Having dealt with one daily for 12 months, they really aren't that bad and are actually quite generous.

I do not think Shell and BP would be in agreement with that.

[samoht]

redroadster said:

One minute the Russians are blowing up planes with innocent people next they are treating themselves to a nice race track cushty.

Fear and loathing of Vladimir Putin is entirely sensible; Prince Charles was spot-on comparing him with Hitler.

However, fear and loathing of all Russians is not fair or reasonable, especially as many of those you might meet have themselves come here to escape from Putin.

[burwoodman]

samoht said:

redroadster said:

One minute the Russians are blowing up planes with innocent people next they are treating themselves to a nice race track cushty.

Fear and loathing of Vladimir Putin is entirely sensible; Prince Charles was spot-on comparing him with Hitler.

However, fear and loathing of all Russians is not fair or reasonable, especially as many of those you might meet have themselves come here to escape from Putin.

They've ruined Dubai hotels. In fact any nice hotel, spot the Russian behaving like a farm animal. Vulgar, rude, aggressive. Huge generalisation, but spot on imo

[SuperVM]

greygoose said:

Jewelly_Boy said:

I think people are being slightly harsh on the Ruskies, probably because hardly any of you have any experience of them other than what you read in the paper which is probably 80% lies.

Having dealt with one daily for 12 months, they really aren't that bad and are actually quite generous.

Your sample size of one Russian has certainly made me reconsider the goings on in Ukraine.

I work with a Russian, he's quite big. I think all Russians must be quite big.

[Hugo a Gogo]

SuperVM said:

greygoose said:

Jewelly_Boy said:

I think people are being slightly harsh on the Ruskies, probably because hardly any of you have any experience of them other than what you read in the paper which is probably 80% lies.

Having dealt with one daily for 12 months, they really aren't that bad and are actually quite generous.

Your sample size of one Russian has certainly made me reconsider the goings on in Ukraine.

I work with a Russian, he's quite big. I think all Russians must be quite big.

nonsense, I have two russian friends, the are both women, one is tall, is is quite small

I think all russians are women, and of average height

[Bisonhead]

I have never been, but do recognise the Ring's importance. I dont care who owns it, as long as it can be maintained as a track where consumers and businesses alike can do what they want/need to do, I'll be happy

[Mark-C]

Hugo a Gogo said:

SuperVM said:

greygoose said:

Jewelly_Boy said:

I think people are being slightly harsh on the Ruskies, probably because hardly any of you have any experience of them other than what you read in the paper which is probably 80% lies.

Having dealt with one daily for 12 months, they really aren't that bad and are actually quite generous.

Your sample size of one Russian has certainly made me reconsider the goings on in Ukraine.

I work with a Russian, he's quite big. I think all Russians must be quite big.

nonsense, I have two russian friends, the are both women, one is tall, is is quite small

I think all russians are women, and of average height

I've never met a Russian so they clearly don't exist ....