SILVERSTONE -- British Racing Drivers' Association (BRDC) president Derek Warwick says it is wrong to blame Liberty Media for Silverstone's current stand-off with Formula One as negotiations also came to a \"dead end\" in the Bernie Ecclestone era. <\/p>\n
Earlier this week the BRDC, owners of the Silverstone circuit, announced the triggering of the break clause in its contract, meaning it can walk away from its current deal after the 2019 event. The circuit hopes to continue negotiations with new F1 owners Liberty in the hope of settling on a more financially agreeable deal to the one it signed with Ecclestone in 2009. <\/p>\n
That contract has a controversial promoters fee, which includes an annual five percent escalator. Silverstone claimed it lost over 4 million to put on the 2016 event despite a sellout crowd. Warwick thinks it is important to note the original negotiations had stalled before the arrival of new owners this year. <\/p>\n
When asked whether Silverstone was closer to reaching a settlement when Ecclestone was in charge, Warwick told Talksport: \"No.... Bernie -- before Liberty -- knew that we were struggling financially. That came to a dead end as well, and now with Liberty we still can't seem to bridge that gap. We understand that Liberty can't just open their books up and cut the sanction fee, we know that's not possible because they'll have 19 or 20 other grands prix breathing down their necks straight away. <\/p>\n
\"But can I remind everybody that every grand prix that Bernie has put together over the last 20 or 30 years or whatever have all had their own individual sanction fee, ratchet, bonuses, sponsorship, TV rights, etc. So we're not all the same, we haven't been the same and therefore we shouldn't be treated the same. <\/p>\n
\"The fact that all - as far as I am aware - other grand prix countries have some kind of support from benefactors, sovereign wealth funds, local communes - i.e. Monaco - and governments. We don't have that luxury, so it has to stack up as a commercial venture and it doesn't.\" <\/p>\n
Despite regular sell-out crowds, Silverstone claims to lose money every time it hosts the British Grand Prix. Warwick says this is partly down to the fact circuits see limited returns from the various financial outlets. <\/p>\n
\"We can only sell so many seats, there are only so many fans that will come to the British Grand Prix. We outsell every grand prix around the world. We probably get more average ticket price than anywhere around the world. But of course they've always got this sponge sat in the background that will fund whatever the difference is. <\/p>\n
\"But as far as the British Grand Prix is concerned, we can't sell sponsorship, we can't have TV money, we can't have any merchandise rights -- Formula One takes all of that. The only thing we can sell is grand prix tickets and a little bit of hospitality. If those figures don't add up to more than what the sanctioning fee is and the ratchet, you don't need to be a mathematician to say that it just does not work. If we're losing an average of 3million or 4million a year, we're not making that up, they're facts.\" <\/p>\n
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Silverstone talks had stalled before Liberty takeover - ESPN<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" SILVERSTONE -- British Racing Drivers' Association (BRDC) president Derek Warwick says it is wrong to blame Liberty Media for Silverstone's current stand-off with Formula One as negotiations also came to a \"dead end\" in the Bernie Ecclestone era. Continue reading