Hockenheim F1 terms "cannot continue"

Hockenheim F1 terms
Adam Cooper
By: Adam Cooper
May 21, 2018, 9:31 AM

Hockenheim says the terms of its current deal with Formula 1 "cannot continue" if it is to agree a new contract to continue hosting the German Grand Prix.

The circuit is in the last season of a deal agreed with Bernie Ecclestone that originally allowed for it to alternate as Germany's F1 venue with the Nurburgring, which last hosted the race in 2013.

Hockenheim has honoured its side of the agreement, hosting the race in 2014, '16, and this year, with Germany not having a grand prix in 2015 and '17.

However, Hockenheim has made it clear it cannot renew on similar terms as it cannot afford to continue to lose money, and its claims come days after it was revealed the planned Miami F1 race will run under what F1 has called "an atypical business model".

"We're aiming to host a GP in the future, and we'd like to have it in the future, but the key point is we cannot prolong under current conditions," said the venue's marketing director Jorn Teske.

"We would like to have a contract which will take the risk from us, this is the basic point.

"We are not speaking about the fee, we are speaking about a new contract where we definitely have no risk.

"We have a circuit which does not receive any financial support from anybody, neither from the state nor from the region nor from economic companies, so we have to make and manage everything for ourselves.

"We had some losses in the past. We had a 10-year contract, and we fulfilled this contract, even though we had some better and some worse years.

"Now's the time that we cannot continue in the same way. We would be very, very happy to have F1 in Germany, not only for us, but especially for the fans. But we have to change the basics."

Hockenheim has suggested a form of revenue sharing, either with no sanctioning fee, or much reduced one.

Teske said: "We are always talking about fees, and then we were asked 'how much fee would you pay to host the race?'

"This is not our question, because we think we should restructure the business model.

"This could be a track rental [by F1 or a third-party promoter], or it could be a sharing of ticket income, and sharing of costs.

"So this is now a question of the negotiations, how it could end up. But there are many models which could work without risk.

"No fee, or a basic fee, just earning the costs, and then sharing the ticket income.

"We presented our ideas, we presented the figures, very transparent, very clear, in the details, and now they [F1] have to think about it.

"But it's not that easy because it's a financial decision they have to take. Do they take the big money? Then we're out.

"Or do they believe in the importance of the traditional race tracks, and an important automotive country, in Germany?"

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Series Formula 1
Author Adam Cooper
Article type Breaking news