Qatar could buy Silverstone
For several years, Qatar has implemented a sports policy aimed at securing a place for itself on the global stage. After hosting a Williams development center, it might decide to acquire the legendary Silverstone circuit, which is seeking investors to ensure its development and future.
According to information from The Independent, the investment by the small Emirate would take the form of a 150-year lease contract granted by the current owner, the BRDC (British Racing Driver’s Club). The association’s goal is to secure the necessary funding to ensure the second phase of work after the one completed this year, as explained by a source close to the matter: “To carry out all these developments, they have to borrow a lot of money and, in the long term, the club cannot afford it. So they want to obtain a lot of money through a very, very long lease from a very wealthy entity, perhaps an investment fund, which would continue the development.”
As was the case during the recent acquisition of PSG, the investment valued at over 250 million pounds sterling (282 million euros) would be led by the financial arm of the Emirate, namely the Qatar Investment Authority. This means that the investment would be directly planned and directed by the royal family, with likely strong involvement from the heir to the throne.
But in its search for financial partners, the British institution wishes to impose some constraints on the future operators of the circuit. Thus, it will be required that the circuit be maintained to standards capable of hosting the British Grand Prix of F1 beyond the year 2017, the final year of the current contract with Bernie Ecclestone. To this end, the other requirement of the BRDC is that the main objective of this 850-hectare space remains focused on motor racing to prevent new tenants from developing overly tourist-oriented ambitions that stray from the history of the venue.
Nevertheless, Silverstone is fortunate to have buildable land around the circuit proper, which prompted the BRDC to file options earlier this month for significant constructions: commercial and technological activity zones, three hotels (which are sorely lacking in the region), an educational campus, and a motorsport museum.
Indeed, it is imperative that the circuit generates new revenue sources beyond just car races. Evidence of this is the fact that, despite having sold almost all available seats for last year’s race, the BRDC had to register a pre-tax loss of more than two million euros. And this was after significantly increasing ticket prices.
With the participation of RacingBusiness.fr
