Friday 27th May 2016

Sabine versus the Nurburgring

Local businesses still not happy with latest regime at the 'ring

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As part of a wider-ranging chat Sabine Schmitz has revealed she really isn't happy that the Nurburgring has been sold lock, stock to a Russian billionaire. An early figurehead for the Save The Ring campaign, set up to protest at the costly and controversial developments a few years back, she's no less vociferous in her opposition to the Capricorn group that eventually took control. Nor, seemingly, is she much of a fan of the news Capricorn's owner, Russian billionaire Viktor Kharitonin, has reportedly raised his stake to 99 per cent from 80 per cent.

The saga continues...

"It's not my dream, but we can't change anything," she told us. As many 'ring regulars will know, Schmitz grew up in Nurburg and still helps run the family's Hotel am Tiergarten, on top of a motorsport business she runs with her boyfriend.

Her continued beef with the owners is that they channel business to the Lindner hotels in the area, an accusation levelled from the very start of the massive redevelopment that opened in 2011. "If you rent the track you have to rent their hotels too, and that was a big disaster for the families who lived there since 80, 90 years, everybody was very upset about it," she says.

The Nurburgring has been a key German tourist destination since it was opened in 1927, but in recent years it has lurched from one financial disaster to another, despite the input of millions of euros of state aid. "They made some big mistakes, like cancelling Rock am Ring, the big rock concert. It meant missing out on a lot of money during the summer," Schmitz says.

In Capricorn's defence it does seem to be making a go of things outside of the track. The StrongmanRun last weekend attracted 10,528 participants the company said, and it has added a professional element to the Rad am Ring cycling event on the last weekend in July. It's cashing in on the track by adding advertising hoarding round the track, and has signed a new partner for the Ring Taxi that helped propel Schmitz into the limelight.

[Sources: Autocar]

 

[Sam All]

It's business, or am I missing something.

[Sam All]

Ryvita said:

Only worry would be if they start to ratchet up prices during busy weekends like the VLN.

The Dorint, and its predecessor the Sport Hotel have been doing that for many decades for N24.

Just as airlines/hotels do so at Xmas/ school holidays.

Opportunity for some.

[Sam All]

samoht said:

Capricorn arguably have at least a local monopoly of the motorsport events market with the Nurburgring; using that legal monopoly to force its hotel rooms on all its users seems analogous to me, and on shaky legal ground.

Capitalism is great, but it doesn't exist in a vacuum; there is an established legal framework defining 'the rules of the game', and monopoly law is part of that.

This sounds at least unethical and quite possibly illegal; I hope the EU Competition Commission investigate.

But is it all users? Is the Dorint still in business ?

If it is illegal. the activity will cease.

Wonder if I could take my home cooked "steak on a stone" into the Pistenklause and enjoy a pint ?

[Sam All]

anonymous said:

[redacted]

So how do you reckon this play out?

And how many rooms does the Lindner have and how many in the area - any idea? 130 and 000's is my impression. Please update me.

When the Dorint opened with its 200+ rooms, there were concerns. The Tiergarten hotel has done ever so well since then.

[Sam All]

anonymous said:

[redacted]

Why don't you tell me - but let me offer you a clue, if is not a monopoly. You can keep arguing with yourself about this till the moos come home.

Do you know if it is illegal activity? Will the assertion get any traction? Litigation is expensive and damaging - I suspect Lindner counsel will have advised them.

I doubt there is a case to answer.