The Nürburgring has lost its contract
The Nürburgring may never again host the German Grand Prix as the Green Hell has just lost its contract, granted by the Rhineland-Palatinate region, which calls into question the alternating plan established with Hockenheim.
Indeed, in mid-2010, the local authorities had established a management contract until 2040 with the company Nürburgring Automotive GmbH, which was, in fact, a new name compared to the former Nürburgring GmbH that managed the famous circuit.
The reason for this initial agreement was that the leaders of the former structure had failed to gather the private funds supposed to match the public money put on the table by the Land, while the anticipated number of visitors had been greatly overestimated. This had led to an accumulation of debts, which Rhineland-Palatinate no longer wanted to assume.
Nevertheless, things have hardly improved since (having the same management in both structures is generally not a good sign for a change in a company’s finances…) and payment delays have accumulated while the local newspaper Rhein Zeitung reports the figure of 15 million euros per year for the lease in question.
The Minister of the Interior, Sports, and Infrastructure, Roger Lewentz, has thus decided to put an end to the current situation: «The Nürburgring is a symbol of Rhineland-Palatinate and of paramount importance to the region and its population. That’s why the government invested in the Nürburgring 2009 project and that is the basic idea guiding the current government in its decisions. I have therefore proposed to the cabinet to request the termination of the management agreement with Nürburgring Automotive GmbH as well as other related agreements, particularly the concession contract for organizing Formula 1 races at the Nürburgring.»
This contract provided for a payment of $13 million per race, or an investment of $6.5 million per year since the Nürburgring hosts F1 only every other year. The minister therefore intends to personally address the matter with Bernie Ecclestone: “I want and need to speak in person with Mr. Ecclestone.”
However, the fact that the ecologists have won the latest elections suggests a bleak future for the circuit, as they are hardly supportive of such events, despite the direct and indirect benefits of hosting sporting events. Last July, Eveline Lemke, the Minister of Economy for the Land, had stated: «In our coalition contract, it was clearly stated that subsidies should be reduced. We will not give in. The Land cannot put more money. The lid has been placed, and the future is not at Nürburgring.»
With the participation of RacingBusiness.fr
