Bernie bankrupts Spa promoter
He said talks had been held with Bernie Ecclestone, who gave Spa-Francorchamps a provisional September 17 date for 2006, and a government meeting would discuss the issue next month. Malburny added: ''We want to hold on to the (grand prix) but not at all costs.''
10/27/05 This rumor is now upgraded to 'fact' as the promoter is indeed bankrupt due to the huge fees required by F1. DDGP, the company that has been the promoter of the Belgian Grand Prix for the last couple of years, has been declared bankrupt by commercial court of Liege. The company has losses amounting to $11.75m and is in dispute with the local authorities over other payments.
The onus is now on the Societe de Promotion du circuit de Spa-Francorchamps (SPSF) and its chairman Yves Bacquelaine, who is the man in charge of sport at the Royal Automobile Club de Belgique, to find a new promoter for the race. SPSF was established in October 2003 to replace Bernie Ecclestone's Spa Activities and has a contract with Formula One Management until 2010 but finding another sub-contractor is not going to be easy given the losses made by DDGP, which lost $5.4m in 2004 and lost even more this year. DDGP was hoping that the regional government would come to its rescue to cover the losses and supply the $17m needed in race fees next year but the word in Belgium is that the Societe Wallonne de Gestion et de Participation (the regional investment corporation) took a look at the books of DDGP and declined an involvement. The region has already loaned (and now lost) $18m in trying to keep the event alive. Grandprix.com
10/22/05 Luxembourg has declined to help fund next year's Formula One grand prix at Belgium's famous circuit in Spa which has been hit by financial problems. Belgium has sounded out the Grand Duchy in a search for funding to secure the future of its Spa grand prix.
"Prime Minister Jean-Claude Juncker has stated…that the current budgetary situation does not allow Luxembourg's authorities to participate financially in this event," the Luxembourg government said in a statement late on Friday.
Spa is one of Formula One's great and historic circuits but last month's race had poor ticket sales. The regional Walloon government lent 15 million euros ($18 million) to the promoter to pay Formula One supremo Bernie Ecclestone for the 2005 race and needs a partner to help fund the future.
Ecclestone's company, Formula One Management, holds the commercial rights to the sport. The government is considering having Ecclestone replace the promoter should it be forced to withdraw. More from Reuters
10/21/05 Belgium has sounded out the Grand Duchy of Luxembourg in a search for funding to secure the future of its grand prix at Spa after the race promoter hit financial problems. Spa is one of Formula One's great and historic circuits but last month's race had poor ticket sales.
The regional Walloon government lent 15 million euros to the promoter to pay Formula One supremo Bernie Ecclestone for the 2005 race and needs a partner to help fund the future.
"We hope we can keep it going," a tourism ministry official told Reuters on Friday. "We are talking with the Grand Duchy of Luxembourg, but there could be other partners involved."
The government is considering having Ecclestone replace the promoter should it be forced to withdraw. A major shareholder of the track, the government will meet on Nov. 8 to make a final decision, the official said. Eurosport
10/20/05 The promoter of the Belgian Grand Prix, DDGP, is close to being declared bankrupt [after having to pay F1 outrageous sanctioning fees]. The company has a contract to promote the F1 race at Spa-Francorchamps until 2010 and the race could be at risk if it goes under. DDGP has been struggling over the past two years as ticket sales for the race did not meet expectations. The company is now in debt to the tune of 10 million Euros.
On Friday the Walloon government of Belgium will meet to deliberate the future of the Belgian Grand Prix. DDGP confirmed the problems to F1Racing.net but was unable to go into detail. "We can not say anything about it currently and we do not know what the consequences could be for the Belgian Grand Prix," a spokesperson told F1Racing.net (F1Racing.net)