Rhineland-Palatinate comes to the rescue of the Nürburgring
Just like the rescue of the eurozone, politicians have come together to save the Nürburgring. Thus, the state of Rhineland-Palatinate will guarantee the loan of 330 million euros taken out by the company managing the German motorsport institution. This should ensure Germany's presence on the 2013 F1 calendar.
For months, the Green Hell has been at the center of significant financial problems related to its aggressive expansion program that began in 2009. On the eve of the last German Grand Prix in Hockenheim, the Ring was declared on the verge of bankruptcy as it could no longer repay its debts.
If local officials previously declared that they no longer wanted to chip in to ensure the circuit’s survival, it seems that the current situation has led them to reassess their judgment on the matter since the debt interest amounted to 47,000 euros per day, which was far beyond the circuit’s repayment capacity.
That is why local authorities announced today that the State would guarantee up to 254 million euros on the 330 million euro loan taken out with the local Landesbank. This loan accounts for the vast majority of the 413 million euros of debt incurred by Nürburgring GmbH.
This change of position places Kurt Beck, the state president, in a most uncomfortable situation with his electorate and ecological allies, who had declared themselves against any public support for the circuit. Some have therefore demanded the resignation of Kurt Beck, which he has refused to submit.
In any case, this proper rescue puts the circuit back in the running for a place on the 2013 calendar, as was initially planned under the rotation contract signed with Bernie Ecclestone and Hockenheim. Jorg Linder, the circuit director, stated to the Frankfurter Allgemeine Zeitung: “I am very optimistic that Formula 1 will return to the Nürburgring next year.”
With the participation of RacingBusiness.fr
