Silverstone owner races to record revenue despite setbacks

Pricewatch volunteer Andy Goves has spotted an interesting news item in the business section of the Daily Telegraph via their app which he feels will be of background interest for fellow members many of whom will be looking forward to MGLive! 2020.

Daily Telegraph online

Posted: 191007
An interesting news item in the business section of the Daily Telegraph by Christian Sylt reports "the owner of Silverstone, the Northamptonshire-based racetrack that is home to the British Grand Prix, is set to report record revenue of £59.3m for 2018 fuelled by a 9pc increase in sales from its flagship Formula One race.

Silverstone is owned by the British Racing Drivers' Club (BRDC), a group of 850 motorsport luminaries including Sir Jackie Stewart, Nigel Mansell and reigning F1 champion Lewis Hamilton. A crowd of 140,500 watched Hamilton narrowly miss out on victory there last year and accounts due to be filed later this month reveal that it led to the BRDC's "financial results exceeding its target significantly".
In the year ending Dec 31 2018 around half of the company's revenue was generated by the British Grand Prix, although other areas of the business were stuck in the slow lane. The BRDC lost £2.6m of revenue following the sale of its Lotus dealership in April 2018 and it had to refund more than 40,000 fans when Silverstone's round of the MotoGP motorcycling championship was cancelled. The race got the red light after heavy rain pooled on the track due to botched resurfacing work. This led to the BRDC incurring a £1.6m impairment charge.
The F1 hosting fee also rose by £0.8m to £18m leaving the BRDC with a £0.4m pre-tax profit, down by 21pc on the previous year. However, in a letter last month to the BRDC's members, its chairman John Grant said that "the group's financial position should show further improvement" in 2019 as the British Grand Prix hit a new record, with 141,000 spectators. Mr Grant added that "early ticket sales for 2020 are currently up on last year by no less than 50pc". In 2020 the BRDC will also benefit from an estimated 25pc reduction in its F1 hosting fee.

It is also on track for the opening of an on-site heritage centre at the end of this month followed by a 197-room Hilton Garden Inn. The BRDC is also planning to open 60 luxury villas and an on-site family entertainment complex."