British F1 GP abandoned by promotor

[Pete Cros]

www.itv-f1.com/news/news-story/20650

[FourWheelDrift]

Good they had no interest in motorsports anyway.

They sold all the other tracks to Jonathan Palmer anyway.

[mutley]

Keep getting "page not found", has this item been removed from the itv site?

edited to add:

Seems the link is slightly different
www.itv-f1.com/news/news_story/20650

>> Edited by mutley on Tuesday 20th April 13:10

[FourWheelDrift]

Probably been moved/update.

Here's what Autosport say

Autosport said:

The Interpublic Group is to terminate its contract to run the British Grand Prix at Silverstone following this year's race in July. As part of the termination, Interpublic will pay $93million to Formula One Administration. Interpublic, the world's second-largest advertising company, was bound under the contract to promote the event until 2015. In its annual report last month, it estimated that this would cost approximately $460million. Following this year's event, Interpublic and its subsidiary, Silverstone Motorsports Ltd, will be released from their obligations as the promoter of the British GP. Interpublic will pay the $93million to Formula One Administration to terminate the contract, but will remain bound under its Silverstone lease and its obligations to the British Racing Drivers' Club, which is the landlord of the circuit. Interpublic will continue to honour its Silverstone lease until the end of 2007, and has estimated further costs of $62million, which includes payments of the remaining amounts under the promoters agreement for the 2004 British GP. "This is another step forward in our turnaround," said Interpublic chairman David Bell. "From the point at which I was asked to lead this company, I have made it clear that it is inappropriate for us to be involved in owning or operating venue-based motorsports businesses. We are pleased to have moved closer to completing our exit from the motorsports business." Interpublic entered motorsport in 1999, buying Brands Hatch Leisure – incorporating the Brands Hatch, Cadwell Park, Oulton Park and Snetterton circuits – for £120million. In January, it sold the tracks to Jonathan Palmer's Motor Sport Vision group for an undisclosed sum to stem operating losses of about £350million by its sports and entertainment group during the past two years.

[williamp]

Will this be the end of the British Gp???

We all know its coming, but I hope its not this way...

[FourWheelDrift]

It's only the promoter, Silverstone is still owned by the BRDC, unlike the others they sold off.

Really, just how much promoting does the British GP need? - The fans know when it happens.

queue marketing experts to say how how essential it is and justify the millions spent.

[McNab]

FourWheelDrift said:

It's only the promoter, Silverstone is still owned by the BRDC, unlike the others they sold off. Really, just how much promoting does the British GP need? - The fans know when it happens.

Just to be clear about this, IPG, not the BRDC, owned and sold off the other circuits.

The problem with promoting the race is that Bernie's fee for each GP is estimated to be between £10,000,000 and £20,000,000 which partially explains why IPG quit, and why it has been so difficult to finance the circuit upgrade.