Silverstone future secured after buyout

Silverstone’s immediate future has been secured after the British Racing Drivers’ Club agreed to accept £27m (€40.3m) to take the circuit back.

The BRDC own the track but had leased it out to marketing giant Interpublic, along with the rights to the British Grand Prix.

That arrangement saw Interpublic incur heavy losses and they bailed out of Formula One by paying the sport’s supremo Bernie Ecclestone to take the rights back earlier this year.

Now they have stepped aside from British motor racing completely by ending their lease on Silverstone early.

The company were due to lease the facility until 2007 but have now agreed a package with the BRDC which will see them hand over control before the end of the year.

BRDC chief executive Alexander Hooton insists the organisation will not lose out significantly as a result of the agreement.

He said: “Our agreements with Interpublic were completed on June 30 and enable the lease to be terminated early and enable the BRDC to regain possession of the Silverstone circuit no later than 15 December, 2004.

“In connection with the agreements reached, the BRDC will receive £27m (€40.3m) in instalments.

“This figure broadly reflects the value of Interpublic’s obligations through to 2007 and therefore the financial standing of the BRDC remains fundamentally unchanged.

“This payment will give the BRDC security in the medium term, which will enable the club to carefully evaluate its future options and therefore determine its own destiny.”

The BRDC recently secured a deal with Formula One chiefs to keep the British Grand Prix at Silverstone until 2006 and Hooton is happy with talks over the long-term future of the event.

“The Formula One Administration has already publicly guaranteed that the British Grand Prix is secure for 2005 and 2006.

“The board of the BRDC is cautiously optimistic that the long-term future of the British Grand Prix will be secured.”