Spa in Bernie’s future, inks new deal
Newspaper 'La Libre Belgique' claims that a new three-year contract with Bernie Ecclestone will be penned, after the existing race promoter ran into financial trouble. The bankruptcy could have meant millions in fines, if staging the race proved too expensive for the regional Wallonian government.
As well as the shorter duration, the new deal will involve about $18m in renovations to the historic circuit, courtesy of the regional government, as well as several million more to stage the grand prix.
Ecclestone, the diminutive F1 supremo, is slated to meet again with Wallonian officials in London either this week or next.
01/03/06 The Dutch news agency ANP is reporting that the Walloon government has signed a new contract with Formula One Management to preserve the Belgian Grand Prix (AutoRacing1.com readers already knew this last month.). The report says that the deal is understood to be for three years only. There was previously a 15-year deal in place, guaranteed by the government. The government will not only be responsible for track upgrades, but also to pay the new sanction fee, thought to be lower.
12/14/05 This rumor is now upgraded to 'fact.' In his London office on Monday, Bernie Ecclestone agreed a deal to take over the running of the Belgian grand prix.
The F1 supremo met with Spa Francorchamps and Wallonia government officials, and they reportedly shook hands on a long term arrangement to secure the future of the historic and popular race.
The seriousness of Ecclestone's recent hint that he would become promoter, meanwhile, was bolstered with news that the bankrupt promoter of the 2005 race was also at the meeting. Presumably, Bernie requested their presence as he prepares to take responsibility for the annual grand prix.
'Het Nieuwsblad' newspaper said on Tuesday that Bernie, 75, also agreed to scrap the need for the local government to financially 'guarantee' the promoters' agreement.
Indeed, the Belgian 'Expatica' publication cited him as saying that the new Spa deal – as well as being good for him – would also 'be beneficial' to the government.
12/08/05 Ecclestone told Belgian television station RTBF on Wednesday night he would take over promotion of the Spa F1 race and a deal would be reached at the beginning of next week. "We are in very serious negotiations" to secure Spa's long-term future," said Ecclestone.
The diminutive Briton told Belgian TV that he is in 'serious negotiations' with the government, which does not want to take over as promoter despite being contractually obliged to do so.
A deal, following the bankruptcy of the original promoter, is expected next week. Belgium's circuit at Spa-Francorchamps is one of the most loved and historic on the formula one calendar. It first hosted a modern grand prix in the championship's inaugural year, 1950. 11/19/05 The regional government wants some changes to the contract signed in 2003 between the promoters of the Spa Francorchamps circuit and FOA, explained Elio Di Rupo, President of the PS party (Parti Socialiste). "If we don't succeed, there will be no Grand Prix. Then, the British and Belgian court battles will begin," said Di Rupo after a long meeting of the government on that subject.
In the last few days, the Belgian media revealed many clauses of the contract that were seemingly to Bernie Ecclestone's advantage. "The only decision that could save the credibility of the regional government would be to immediately stop the idea of organizing a Formula One Grand Prix at Spa Francorchamps" to "free itself from the grip of Ecclestone," noted Belgian paper La Libre.
11/18/05 Belgium's regional government is still talking to Bernie Ecclestone in a bid to secure the future of the country's grand prix, despite a row about the cost of a guarantee it might have to give the Formula One supremo. The government of the country's southern Walloon region was also continuing to look for private investors willing to help finance the race at Spa after Luxembourg declined earlier this month.
"We are searching for a solution for the grand prix but not at any price," said Philippe Malburny, spokesman for Walloon's economy minister, on Friday. There are two possibilities, either we organise it or we don't."
Although Spa is one of the great and historic Formula One circuits, its promoter has run into financial trouble after poor ticket sales this year. The government had to lend the promoter 15 million euros ($18 million) to pay Ecclestone for the 2005 race. One of the options it is considering is for the 75-year-old Briton to take over the running of the event. More at Reuters