Silverstone triggers British GP break clause

The owners of Silverstone have triggered a break clause in the race contract that will see the British Grand Prix deal end in 2019.

The British Racing Drivers' Club (BRDC) announced the news at a news conference at Silverstone on Tuesday, stating it is "not financially viable" to continue holding the race with a 5 percent escalator in the hosting fee. BRDC chairman John Grant said the race was likely to make another significant loss in 2017 and that the situation could not be allowed to continue.

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"This decision has been taken because it is not financially viable for us to deliver the British Grand Prix under the terms of our current contract," Grant said. "We sustained losses of £2.8m in 2015 and £4.8m in 2016, and we expect to lose a similar amount this year.

"We have reached the tipping point where we can no longer let our passion for the sport rule our heads. It would not only risk the very future of Silverstone and the BRDC, but also the British motorsport community that depends on us.

"However, I want to be clear that although we have now activated the break clause, we are fully supportive of the changes the Liberty team are making to improve the F1 experience. Our hope is that an agreement can still be reached, so that we can ensure a sustainable and financially viable future for the British Grand Prix at Silverstone for many years to come."

The original contract was due to run until 2026 but Grant confirmed that "unless a new contractual arrangement can be reached with Liberty Media, 2019 will be the last year that the British Grand Prix takes place at Silverstone – the only viable venue for a British GP."

Despite the decision to activate the break clause, Grant says he is hopeful of renegotiating a new deal with Liberty Media – who offered to extend the break cause deadline until after this weekend's event – as the BRDC is supportive of the plans outlined by F1's new owners.

"Losing the British Grand Prix would have a negative impact that is felt far beyond Formula 1 and Silverstone. The UK motorsport industry today is worth an estimated £10.5 billion - employing over 45,000 people and exporting over 75 percent of its output. That is larger than the equivalent sectors in Germany, Italy and France combined. Having the British Grand Prix at Silverstone – the biggest occasion on the motor racing calendar – serves as a focal point for so much of what is great about UK motorsports, and the wider engineering and manufacturing sectors.

"Seven out of the 10 F1 teams are based in the UK – many close to Silverstone. This brings vital jobs to the country, as well as having a positive impact on the local communities and economy. There's a good reason why the area around Silverstone is known as the "Silicon Valley of motor sport". Take away the British Grand Prix and this is all placed at risk.

"Under its new Liberty ownership, Formula 1 has put forward some great ideas for developing F1 and we fully support their plans for creating a better show and fan experience. Putting fans at the centre of our sport is exactly what we believe in – that's one reason why Silverstone has become the most popular Grand Prix on the calendar.

"That's why we've been in ongoing discussions with Liberty's new F1 team about how the situation could be resolved – putting forward a number of proposals that we believe could secure the long-term, financial viability of the event.

"Although we have now activated the break clause, we have made it clear that we are open to working with our friends at Liberty to find a solution that works for all parties. Our hope is that an agreement can still be reached, so that we can ensure a sustainable and financially viable future for the British Grand Prix at Silverstone for many years to come."

Following the BRDC’s announcement, Liberty were heavily critical of the decision, with Chase Carey saying he was unhappy with the timing having offered an extension to the break clause deadline.

“The week leading up to the British Grand Prix should be a week of great celebration for F1 and Silverstone,” Carey said. “We deeply regret that Silverstone has chosen instead to use this week to posture and position themselves and invoke a break clause that will take effect in three years’ time.

“We offered to extend the current deadlines to focus on everything that is great about Silverstone and Formula 1. Regretfully, the Silverstone management has chosen to look for a short-term advantage to benefit their position.

“Our focus is still to preserve the British Grand Prix. We will carry on negotiating with the promoter in good faith and in private to reach a fair and equitable solution.”