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
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.
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
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."