Donington could still host British GP

Donington Park could still host the British Grand Prix in 2010, according to track boss Simon Gillett, but only if a third party either invests in or buys out the company that runs the track.

Gillett's company, Donington Ventures Leisure Ltd, went into administration last week after failing to raise the required funds to complete ambitious redevelopment plans.

Gillett is confident that there is still time for the key works to be completed before next year's grand prix, with the hospitality and other facilities completed for the 2011 event. This means that a grand prix could be held at the track next year if the money is in place, opening up the possibility of a new contract being agreed.

To get the track to an acceptable state for 2010, around £50 million would have to be spent, with a further £40 million to complete the additional facilities for 2011.

"Next year is possible, but it wouldn't be all of the construction," Gillett told AUTOSPORT. "You'd end up doing pit garages, race control and the track the bare essentials to get the track up and running for 2010 and there's still plenty of time for that to happen.

"It's a very short period of time that we are working to on that front, but it's a really good opportunity for someone. Where on earth can you buy a Formula 1 grand prix? Here you can, potentially. If someone is out there and has that funding at the moment, they have a unique opportunity to steal away the British Grand Prix.

"It would have to be 2010 because Silverstone would not take it for one year and no-one, me especially, wants to see the British Grand prix lost to the UK."

Gillett said that if Donington wants to host the British Grand Prix it will have to be ready for 2010 rather than 2011, as Silverstone would not accept a one-year deal and if the race falls of the calendar it could jeopardise the event's future.

Although the 17-year-contract that DVLL signed with Bernie Ecclestone last year is no longer valid because the track failed to meet its obligations, Gillett is confident that the F1 supremo would be willing to consider a new deal on a similar basis.

"That contract has gone," added Gillett. "But Bernie Ecclestone has said that if someone turns up at Donington with the right ideas and the right money then he will talk to them."

Although continuing with the British Grand Prix project is Gillett's favoured direction, it is one of three options for the future of the track.

Gillett is hopeful about the interest shown in the circuit since it went into administration, although should a buyer or investor not be found, DVLL could be forced to go into liquidation.

"We are now seeing who is out there," he said. "There are multiple paths that we can go down. One is to go back to the good old national and club venue that it was and another is to take it to a hybrid and create the new track for national and club racing.

"The third is if someone comes in with significant funding and go for F1. So that's what the administration process is going through at the moment.

"There has been a significant amount of interest, but predominantly we've been talking about F1, because time is of the essence. But if that doesn't pan out then there will be more interest in the national circuit."

The completion of any buy-out would need to take place within the next two weeks, as Ecclestone has said that the 2010 F1 calendar must be finalised by December 9.

Donington Ventures in administration

Donington Ventures Leisure Ltd, the company that owns the leasehold of Donington Park, has gone into administration.

The company was plunged into financial difficulty after a final attempt to raise the funding for the track redevelopment works through a bond issue failed last month. The revamp was required in order for Donington to host the British Grand Prix in 2010, the track having signed a 17-year deal to hold the event.

Corporate recovery company Begbies Traynor is handling the administration process, and is hopeful that DVLL will be bought by a third party with the aim of holding the British Grand Prix in 2011.

"We are certainly hopeful that a 2011 grand prix could take place at the site," said Nigel Price, a partner in Begbies Traynor.

"We are looking for a purchaser for the business and the potential opportunity to bring Formula 1 to this part of the Midlands by funding the work that needs to be carried out to the circuit.

"It still remains a fantastic location - next to an airport and main motorway connections.

"It needs people of vision to get the dream to the starting grid and we would be very interested in talking to interested parties."

However, speaking last month, Bernie Ecclestone ruled out the possibility of the British Grand Prix going to Donington, with negotiations now ongoing with Silverstone.

"There's no Donington. They've missed the deadline which we kept extending for them," said Ecclestone.

"It's unfortunate for them, to be honest with you. It was the credit crunch that caused them to be in trouble because their intentions were good, that's for sure."

Donington Park is owned by Wheatcroft & Sons Ltd, the company set up by Tom Wheatcroft, who passed away earlier this month, and if no buyer was found the ownership of the leasehold would return to the company.

DVLL had signed a 150-year lease in 2007.

Donington admits bond plan has failed

Donington Park says it has until midday on Monday to sort out its financial planning for the British Grand Prix, after confirming efforts to raise a £135 million bond have failed.

Reports emerged last night that its funding scheme had been pulled from banks, as it bids to raises the finances necessary to redevelop the track ahead of next year's British Grand Prix.

The track has already failed to hit a deadline with Bernie Ecclestone, which means it is now effectively in breach of contract. However, the terms of the deal do give the track extra leeway to rectify the breach before the contract is terminated.

That deadline, claims Donington Park, runs out on Monday - leaving track owners less than two working days to try and put a money package together before it loses the British Grand Prix.

In a statement issued on Friday, the track said: "Donington Ventures Leisure Limited can confirm that a bond for £135 million to cover the cost of the F1 redevelopment at Donington Park has been unsuccessful.

"Despite higher than expected levels of interest and very positive early indications, the bond - which was launched with Citi Group last week - has failed to secure enough subscription ahead of today's deadline.

"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 Formula 1 Rights Holder Bernie Ecclestone, in order to keep any plans for retaining the existing 17-year Formula 1 contract alive.

"Information regarding the circuit's future plans is not yet available, however the major focus is on providing security for the Leicestershire venue and all related parties, including staff and suppliers."

Silverstone is waiting in the wings and ready to do a deal with Ecclestone to secure the future of the British Grand Prix, with dialogue between the two parties having increased in recent weeks.

Gillett has two weeks

Donington has what appears to be a final two-week period to prove it has the money in place to stage next year’s British Grand Prix, with Bernie Ecclestone saying the circuit is now in breach of the contract it signed with him.

The Leicestershire venue’s operating company, Donington Ventures Leisure Limited, had initially been given to the end of September to raise the money needed to complete its major redevelopment of the circuit, a deadline that had since been extended.

DVLL chief executive Simon Gillett issued a statement on Monday evening claiming that Ecclestone had granted the circuit a further fortnight reprieve, saying the track remained “committed to delivering on the promises we made at the start of this process” when it lured the British GP away from Silverstone from 2010.


However, Ecclestone has now insisted that he hasn’t given Donington an extended deadline, saying that an additional two-week period has been activated as the circuit has now breached the terms of its 17-year contract with him.

“We haven’t decided to give Gillett another deadline at all,” Ecclestone told the Daily Telegraph.


“We have informed him he is in breach of contract.

“The contract which we have gives him 14 days to remedy the breach. Most business contracts are like that.”

Ecclestone admitted last weekend that he could not see how the circuit would complete its multi-million pound revamp in time for next July’s race even if Gillett managed to finally secure the funding.

The F1 impresario says he has not spoken to Gillett and confirmed that should financial details not be forthcoming over the next two weeks then Donington’s F1 ambitions are over.

“I’ve been thinking he’s going to come through all the way along because he’s sort of led me to believe it’s all OK,” he said.

“But I have no reason to discuss anything with him.

“He’s either going to remedy the breach or he isn’t. If he isn’t then that’s the end of the story.


"If he is then we’re going to have to make sure that he does all the other things that the contract provides for.”

With Donington teetering on the brink of losing the right to hold the British GP from 2010, Ecclestone has previously confirmed that the event will return to long-time home Silverstone should its rival not deliver.

Damon Hill, the president of Silverstone track owner the BRDC, had already made it clear the circuit is not interested in a one-year stop-gap agreement – and a longer-term commitment is something Ecclestone appears ready to agree to.

"We have an agreement with Silverstone that in the event of a breach we will talk to them and we will be discussing this,” Ecclestone was quoted as saying by the Guardian newspaper.


"Of course it is no good for them [the BRDC] having a one-year job, for sure.


“We'll talk to them and see but we won't return to Silverstone under the same conditions.


“There's nothing wrong with Silverstone; the only thing is they promised things that didn't happen."


And asked if Donington’s 17-year deal would be transferred to Silverstone, Ecclestone added: “Silverstone will have the opportunity of exactly the same contract as Donington.”