Silverstone, BRDC Trigger Break Clause With Formula 1 | Performance Racing Industry
News
Silverstone, BRDC Trigger Break Clause With Formula 1
July 11, 2017
The British Racing Drivers’ Club (BRDC), the owner of the Silverstone racing circuit, has formally triggered the break clause in its contract with Formula 1 and its owners, Liberty Media, due to significant net losses.
Silverstone, BRDC Trigger Break Clause With Formula 1

The British Racing Drivers’ Club (BRDC), the owner of the Silverstone racing circuit (Northamptonshire, England), has formally triggered the break clause in its contract with Formula 1 and its owners, Liberty Media.

This means that, unless a new contractual arrangement can be reached, 2019 will be the last year that the British Grand Prix takes place at Silverstone—the only venue licensed to run an F1 Grand Prix in Great Britain.  


The reason for the break clause, according to the company, is because the BRDC has made a net loss of $9.7 million (£7.6 million) over the last two years hosting the British Grand Prix. 


“We sustained losses of £2.8m [$3.6m] in 2015 and £4.8m [$6.1m] 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,” Chairman of the BRDC John Grant said in a press release.

According to the Club, the BRDC’s current contract to host the British Grand Prix—agreed in 2009 with the previous owners of Formula 1—requires the organization to pay a Promoter’s Fee to Liberty Media in order to host the British Grand Prix. 


This Promoter’s Fee increases by five percent every year, raising from $14.7m (£11.5m) in 2010 to $20.8m (£16.2m) in 2017. By 2026, the last year of the current contract, the Promoter’s Fee would have risen to $32.1m (£25m). 


“Our hope is that an agreement can still be reached so that we can ensure a sustainable and financially viable future for the British GP at Silverstone for many years to come,” Grant said in a press release.

The British Grand Prix attracts over 350,000 attendees and hundreds of millions of viewers around the world, according to the BRDC.