Silverstone chief issues profits warning to shareholders
Northamptonshire race circuit Silverstone has issued a profits warning to shareholders after a year of falling ticket sales.
According to reports, Silverstone chairman, John Grant, has sent a letter to shareholders saying that the track will make a loss because “ticket revenues were well down compared with last year’s strong performance.”
The letter continued: “With an ever-increasing hosting fee, this means that the Grand Prix’s contribution to profit will be less than last year, so that we now expect to make a loss for the year and miss the year-two target of [our] three-year plan.”
Around 139,000 supporters saw Lewis Hamilton race to victory in the British Grand Prix this year, but this was offset by reduced ticket prices, which started at £99.
Silverstone’s chances of turning its financial year around look slim, say reports, as the British Grand Prix accounts for half of its parent company’s £54.7m annual revenue.
Silverstone is owned by the British Racing Drivers Club (BRDC), a group of 850 shareholders which includes former champions Sir Jackie Stewart and Nigel Mansell. In the five years to 2015, BRDC made losses of £55.9m.
F1 supremo Bernie Ecclestone has in the past threatened to pull the Silverstone race from the calendar, saying there is a clause in his contract which will allow him to drop it with immediate effect.
BRDC is currently looking to raise funds by selling a 3249-year lease on Silverstone.
