Firms fear loss of F1 Grand Prix at Donington UPDATE The ongoing saga regarding the future of the British Grand Prix could be nearing its conclusion. The deadline to meet the contractual commitments to host the race starting next year has now passed with no comment from the circuit.
Donington confirmed on Friday that its hopes of raising £135m to complete the redevelopment of the circuit had been unsuccessful and that they would be in breach of contract should they fail to resolve the issue by 12.00 GMT.
“Despite higher than expected levels of interest and very positive early indications, the bond has failed to secure enough subscription ahead of today's deadline,” read Friday’s statement.
“The news dealt an unexpected blow to staff and management at the circuit, who still have a deadline of 12pm on Monday 26 October to remedy a breach of contract with Rights Holder Bernie Ecclestone, in order to keep any plans for retaining the existing 17-year Formula One contract alive.”
Donington has not made a statement today regarding its position to the deadline. The Times reports that the circuit could potentially face bills of between £12m and £15m for breach of contract while Silverstone remains on standby to host next year’s race – should the British Racing Drivers’ Club and Formula One Management agree commercial terms.
10/24/09 The business community near Donington Park is bracing itself for the loss of millions in earnings if the British Grand Prix is not secured at the venue.
The track's operators have failed to raise £135m to upgrade facilities and face a Monday deadline to come up with another plan for Formula One bosses.
Engineering, construction and hospitality firms had all hoped to benefit from F1 coming to the area.
Business leaders said they were "hugely disappointed" at the situation.
When it was announced that Donington had won the right to host the British Grand Prix in July 2008, it was seen as a huge boost for the East Midlands and an opportunity for hundreds of businesses. zzzz
But since then the track's operators, Donington Ventures Leisure Ltd, have missed a series of deadlines to prove they have the financial backing to see the project through.
EPM Technology in Draycott, Derbyshire, builds parts for Formula One cars and its boss, Graham Mulholland, said there were no second chances in the sport.
"It is like being in a cup final and it has gone to penalties - you have got to score.
"We are only as good as our last delivery. If we let any of our customers down, we would lose a customer, it is as simple as that.
"There is no point any of our customers going racing with parts missing, so the whole infrastructure of Formula One, from Bernie Ecclestone down, survives on it being one go." More at BBC