Friday 22nd November 2013

Ringside Seat: Transparency and fairness

Following the 'ADAC buys Nurburgring' saga, Dale just want to know who the real bidders are

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Transparency and fairness are buzzwords when politicians and businessmen are caught with their hands in each other's pockets, but here at the Nurburgring we are struggling to see signs of either. It's leaving me with a sinking feeling that things are going wrong for the Nurburgring's future.

ADAC heavily involved in German motorsport

A week or so ago a few of the tabloid websites ran with the story that the ADAC (Germany's equivalent to the RAC, but bigger and more politically connected) had bought the debt-ridden Nurburgring. The story was totally incorrect. It was simply a mis-translation of a German story where the ADAC President Peter Meyer simply confirmed that the ADAC had tendered a bid. They've since back-tracked and edited the story that's online, but the headline in the URL was clear.

But why was this bid by the ADAC newsworthy in Germany in the first place? It was the first of the many bidders to 'go public'. Of course, lots of us already 'knew' that the ADAC had offered to buy the race tracks from the government, but we'd also heard that they didn't want to buy the museum, hotels, rollercoaster and that huge concrete boulevard.

Track won't be sold off separately

This, naturally, was an unattractive offer for the State. We all know the F1 track and the Nordschleife are sound businesses and great assets. The ADAC could run them brilliantly and make good money for us all. But who would pay anything more than buttons for that mass of concrete with no track attached?

For those in the know, the ADAC's bid of "mid-double-digit millions" was a tremendous low-ball. Combined with the cherry-picking attitude of plucking the best bits from the middle of the half-billion Euro mess, it was sadly obvious that it would never succeed. But it's indicative of the real processes going on behind closed doors.

Nearly five years ago all of us Nurburgring fans were up in arms because the track had been leased to a private company with no bidding process and no consultation. Of course, that turned sour like everybody said it would.

Testing generates great income for the 'ring

Now, to be brutally honest, we're not in a much different situation. At least this time we know there's a bidding process. But the only public bidder has been the ADAC, the others who are still in the game lurking in the shadows. And maybe they'll be good for the Nurburgring, or maybe they'll just dump a lot of cash into the politician's coffers.

I can give you guesses, but nothing concrete. And that's totally wrong.

In my opinion, the ADAC only went public with its bid as a pre-emptive strike against bad PR. It knew it had failed, it knew it could face future criticism for not trying to save Germany's biggest automotive landmark, so it spun the story out as "greedy state rejects enthusiasts bid".

Now I have this sinking feeling again, and the only way it will leave is when I see all the bidders laid out on one sheet of paper before the track is sold. Transparent and fair. Too much to ask? Probably, but I live in hope.

[MichelV]

If the state is so into debt for this Nurburgring thing it is "good" for the sale that there is no transparency. Ohterwise they would loose face when the winning bid would be lower then the outstanding total debt (which it will most likely always be).

As for the ADAC. It is a commercial organisation with poitical ties, so the press release fits the bill.

It is a hotel-sized L-shaped cock-up; whomever buys it will always low ball and concentrate on the things that make money/sense....

That is why I always book at Hotel Zur Burg ;o)

I believe we will be fine. Then again I have thought countless times I could recover the car, only to find myself facing the wrong way round.

Michel