Silverstone near bankrupcy due to poor sales

[proteus]

Silverstone is near to bankrupcy due to poor ticket sales. Patrick Allen says he cant sell this "crap" to people anymore. How low has the sport fallen.

My opinion about F1 is something like this:

We had a great sport trought 80s and 90s, it was perfect blend of danger, skill of the drivers, technical development and controversity. 2000, 2001 and 2002 were still interesting seasons even with the domination of Ferrari. In 2003 it has all started with changing the points system, but still 03 and 04 were interesting. Then MAx Mosley started with his strange decisions with changing qualifying format, banning tyre changes and so on...and banning the V10 engines. 07 and 08 were seasons of strange looking cars, which reminded more of a spaceships. We got engine rev limits, which ensured less overtaking and less engine failures. In 09 next big negative change happened in a form of deforming cars into something never before existed and was quite frankly ugly (apart from removing all those side wings and gills). 10, 11, 12 nd 13 were the seasons of aero (redbulls car on tracks) with only 4 engine manufacturers from which 3 were competitive and 1 used by the backmarkers. DRS was introduced which did what was illegal in the most basic terms of rules in F1 (no moving parts which help aero can be used) - the sport contradicted itself....14 and 15 seasons are seasons of hybrids which are overexpensive, complex and with too much restrictions, lacking noise. Not to mention we are losing tradicional tracks, and those which stayed are getting butchered by changing layouts and making every runoff areas are covered with tarmac, which does not punish driver mistakes anymore.

As i see it, the sport was destroyed in a good 10 years. From hero to a zero. This season is the first time i overslept every morning race, because it was too boring to watch. And in the whole, the only race i actually enyojed was the Hungarian GP, which was in the past marked ast one of the dullest races due to its narrow layout.

Some of counted things are not fully put in place they were introudec, but most of u know when they were introduced, and i used shortcuts to make this as direct and understandable as possible.

Please share youre point of view on the situation. What do u think about the sport.

[dans79]

in its simplest form I see it as a 2 part issue.

1. the continued push by certain sections of society towards egalitarianism. Take Kaltenborn's latest comments for example, to me they read like she thinks her team has a birth right to not only to compete in F1, but a birth right to be competitive. The same can be said about the various RBR executives essentially demanding F1 be altered so they can be competitive an win.

2. Bernie squeezing everyone for every last cent, and his inability or unwillingness to progress into the 21st century with regards to how F1 is produced & broadcast.

[Just_a_fan]

Do you have a source for this "bankruptcy" claim?

[bhall II]

in its simplest form I see it as a 2 part issue.

1. the continued push by certain sections of society towards equestrianism...

How could we let this happen?!

[wesley123]

How often does Silverstone get used? using it for solely F1 (for example) obviously leads to loss

[dans79]

How could we let this happen?!

ugh, damn auto complete, fixed.

[FoxHound]

How often does Silverstone get used? using it for solely F1 (for example) obviously leads to loss

Not very often with these kind of prices to take your car for a track day...
http://www.silverstone.co.uk/experience ... rack-days/

I did consider it, just to say I've been. But that's twice the price of other tracks, and I've heard actual running time is about 90 minutes to 2 hours for a "day".

Nah...

[Bigal38]

What a load of crap poor sales my arse !
http://www.silverstone.co.uk/news/silve ... -sold-out/
There just probably looking for more government money to prop them up for a poor business model

[dans79]

Not very often with these kind of prices to take your car for a track day...
http://www.silverstone.co.uk/experience ... rack-days/

I did consider it, just to say I've been. But that's twice the price of other tracks, and I've heard actual running time is about 90 minutes to 2 hours for a "day".

Nah...

Jesus, at those prices for 2 hrs, some schools in the states provide a car & an instructor all you have to do is show up.

[bhall II]

Silverstone is near to bankrupcy due to poor ticket sales. Patrick Allen says he cant sell this "crap" to people anymore. How low has the sport fallen.

Here's a somewhat different perspective...

Silverstone managing director Patrick Allen has confirmed the circuit's contract to host Formula 1's British Grand Prix through to 2026 will be honoured.

It recently emerged the Northamptonshire track could activate a break clause in its 17-year deal that would allow it to pull out of hosting the race after next year.

Despite the difficulties in raising the annual hosting fee - which increases year-on-year due to a five per cent escalator clause - Allen has confirmed a business model is in place that guarantees the race's future.

Speaking to AUTOSPORT today, Allen said: "We will be able to see out the contract.

"We can do it because not only do we put on a good show, but we also made a significant improvement on profit from this year's grand prix than we have done in the past. All of that helps.

"But the way I am developing the business is as an attraction and entertainment business where we are generating revenues from not just one race of the year.

"That not only secures the future of Silverstone, but also the future of the grand prix. If it came to it, if we had to subsidise the grand prix, then we could.

"At other circuits there is one big race of the year and that's the end of it, but we are not that.

"We're a 360-day attraction that generates revenues from many other events. We are not totally reliant on one race.

"People get the impression if there is no grand prix there is no Silverstone, and if there is no Silverstone there is no grand prix, well that just isn't the case.

"Silverstone will be able to host the British Grand Prix through to 2026, absolutely."

Allen has confirmed a letter of credit from bankers Lloyds was in place prior to his arrival at the start of the year, allowing Silverstone to pay its hosting fee to Bernie Ecclestone in arrears.

"We've never missed a payment and the letter of credit is in place. There is a contract in place that allows us to do that," added Allen.

"Our bank is comfortable with the situation."

Allen also downplayed comments in which he had described F1 as "a --- product" and "a procession" that made tickets hard to sell.

"The product has been developed from a technical perspective rather than a customer-experience point of view, so the cars are ever more technical and advanced," he said today.

"That said, when there is a disparity between the front two Mercedes cars and everybody else, as it was in the early part of the season when the comments were made, then the product needs to improve.

"What has happened since is that Ferrari and Williams have improved, and what we are seeing is ever closer racing.

"Notwithstanding that, Mr Ecclestone and the FIA are looking at rule changes to produce ever-more exciting racing.

"The comments at the time were apt, but action has been taken, and we're now going to have a better product and a more exciting racing format for 2017."

[Facts Only]

Not very often with these kind of prices to take your car for a track day...
http://www.silverstone.co.uk/experience ... rack-days/

I did consider it, just to say I've been. But that's twice the price of other tracks, and I've heard actual running time is about 90 minutes to 2 hours for a "day".

Nah...

Jesus, at those prices for 2 hrs, some schools in the states provide a car & an instructor all you have to do is show up.

Its not that expensive, actually cheaper than I thought:

http://www.trackdays.co.uk/calendar/fil ... periences=

Trackdays from £175 on the GP circuit, you pay £120 to go to Mallory and that only has 4 corners!

[Phil]

I just wanted to reply too. The quoted price of £295.00 at Silverstone for a trackday doesn't seem much. I've generally paid that much for smaller tracks. Usually, when we do track days, we don't book directly with the circuit, but it's usually organized by a trackday organisation that books the entire track for the day. The price then usually fluctuates to how many cars can be on track at the same time and how much they can fill the place with how many cars. At an entry list of 50 cars on smaller tracks like Anneau du Rhin, this usually works out to be around €300-€350. Yes, £295 is more, but Silverstone is a much larger track with a much higher infrastructure so it's logical it would cost more.

[R_Redding]

Poor Sales ???????????????????????????????????.

I went to the Friday FP1&2 sessions and the place was packed.Sold out Sat and Sun.

They probably have more visitors on the Friday than most places see on all three days combined. If the German GP could attract half the Silverstone numbers it would still be on the calendar.

Thr real problem is that Bernie takes just about all the money from tickets and concessions...leaving very little for the promoter.

Rob

[Moose]

Poor Sales ???????????????????????????????????.

I went to the Friday FP1&2 sessions and the place was packed.Sold out Sat and Sun.

They probably have more visitors on the Friday than most places see on all three days combined. If the German GP could attract half the Silverstone numbers it would still be on the calendar.

Thr real problem is that Bernie takes just about all the money from tickets and concessions...leaving very little for the promoter.

Rob

Not "just about" - more than. The fee to host the race is currently £22m (and goes up about £2m a year). The track can hold 150,000 if packed out, for whom the average ticket price to the F1 is about £150. That sounds like it should be enough - that's £22.5m. However... Of that, 25% is VAT (no, not 20%, VAT is 20% on top of the untaxed price, so the untaxed price is 75% of the taxed one), so £16.8m can be brought in by ticket sales.

Yes, there are other ways the track makes money on an F1 weekend (contracting out the ability to have a food truck at the track for example), but they certainly do not (and can not) make any money just from the ticket sales.

[Just_a_fan]

Exactly. Another example of Bernie's greed killing the sport for the fans.

Three-day ticket for the 2016 race will be £175 although they do an early buy discount. Add £65 to park and it's a pricey weekend. If you want to have a seat under cover then the ticket price can go up to £425 (£375 just for the Sunday). A family of four going to the race and sitting under cover is over £1000.

And still they fill the place.