The mess that has surrounded the Nürburgring is now beginning to be cleared up, following a settlement in recent days between the various parties involved. The Rheinland-Pfalz regional government provided large sums of money to Nürburgring GmbH, a company which it owned, five years ago, with the goal being to increase the earning potential of the venue with the construction of an automobile theme park. The company was supposed to provide equal investment in the project, but failed to do so, leaving the government in the embarrassing situation of having to pay for the remaining work to avoid an embarrassing scandal. When the estimates for the number of visitor proved to be wildly inaccurate, the whole affair moved into the public domain and the local finance minister Ingolf Deubel had to resign. He was recently put on trial for alleged embezzlement relating to the affair.
In the middle of 2010 the state government decided that it had had enough and handed over the entire business (including the debts) to a new company called Nürburgring Automotive GmbH (NAG), which took over the running of the circuit, the hotels, restaurants, holiday homes, theme park, shops, convention centres and arenas on a lease that was due to run until 2040. Oddly, the new company was run by the same people who had previously been managing the old company. They raised prices for all activities run at the circuit, causing something of a backlash in the racing community. They failed to pay their lease fees and the Rheinland-Pfalz announced earlier this year that the lease would be terminated. NAG launched a legal action to protect its position. A settlement has now been found between the two parties with the administrator of Nurburgring GmbH, which owns the circuit, agreeing to allow the tenants to remain in place until the end of 2015, after which the circuit will be put up for sale. A financial settlement has also been found that involves the payment of lease fees and the waiving of some taxes by the state government. This clear the way for Nürburgring Automotive GmbH’s Jörg Lindner and Kai Richter to go back to the negotiating table with Bernie Ecclestone. In recent years the Ring has paid only $13 million per race, but the money has been spread over two years thanks to the alternation of the German GP with Hockenheim, which means that the Nürburging only had to find $6.5 million a year. The word is that FOM has even offered to run the race for free on the understanding that it takes the revenues of Grand Prix Rheinland-Pfalz GmbH & Co. KG, the company that has been set up to run the race. Nurburgring Automotive GmbH says that in the longer term it intends to bid for the ownership of the circuit, which they believe can make a profit each year with its hotels and restaurants, fairs, conventions and, of course, race meetings.
Elsewhere European promoters are worried about comments made by Bernie Ecclestone about needing to axe more European races and the Hungaroring is reported to have just signed a new five-year deal that will take the race to 2021. The race in Budapest has considerable backing from the Hungarian government. The track will be resurfaced and it is hoped that some modifications will be made to improve overtaking possibilities.
Indeed, the Hungaroring will receive a full conversion for 2014. with F1 drivers involved (including Vettel).
Here’s an article about it (Google Translate does a surprisingly good job here)
http://translate.google.com/translate?hl=en&ie=UTF8&prev=_t&sl=auto&tl=en&twu=1&u=http://sportgeza.hu/forma1/2012/11/08/kanyarkombinacioval_es_egyenessel_is_gazdagodhatna_az_atepitett_hungaroring/
Hi Joe, thanks for the Story… what a mess they made, such a shame!
Just a small correction: it’s Nürburgring, not Nurburgring
This is an English language blog, so we can live without umlauts, accents and all the rest of it.
Freestyle language perhaps.
The English spelling is Nurburgring.
The German spelling without the umlaut is Nuerburgring.
À bon entendeur, salut.
Joe, do you need more than the fingers of one hand to count the number of people you know of, involved in the higher levels of F1, who isn’t a dodgy dealing shyster?
Yes. You just have to get to know them.
I wonder what Bernie wants to gain by giving such comments, (The only answer is more money, I guess) because there is not much he can axe in Europe. The only race worth axing would be probably Barcelona, but with Alonso going strong this definitely won’t happen. Considering that in 2014 Sochi GP will take place… So with it the list would be Barcelona, Monaco, Silverstone, Nurburgring, Hungarioring, Spa, Monza AND Sochi. So, which one can be removed from the list? Tough choice…
When Bernie said this it was several weeks ago. As usual with Bernie you need to wonder not what he was meaning, but what he was diverting attention from at the time.
Grib …cough cough …kowski …cough?
Hmm. Doesn’t help us fans who haven’t any chance of getting to know them. All we hear of are the billionaires who can’t afford to pay their employees but can run a racing team and a superyacht. The convoluted deals where only a team of financial experts can keep track of who owns what. The lawsuits, and the impending court cases. And the general air of chicanery and outright corruption that clings to F1 like a cold, clammy, fog.
Why isn’t there more support among the German automakers for a circuit steeped in racing heritage? Mercedes supplies three teams and a German has won the world championshp three years on the trot.
The bigger question for the sport is why German attendence and audiences are low despite these factors.
Very interesting. Maybe they’e watching hockey now that so many NHLers are in European leagues. :p
Because, as a spectator sport, F1 is a rip-off. And Germans are smart enough to avoid rip-offs. TV isn’t down.
It is only a ripoff because the promoters have not done a good job in convincing the governments that they should pay. They are getting the benefit of the races but do not want to pay for it. Typical politicians. The promoters are doing it wrong because they are putting the cost onto the public rather than using public money.
And it is the ticket-paying fans who feel it most, Joe. Those of us who wish to pass on to the next generation all of the wonder and joy of a live motor race.
I am not denying that, but if you feel passionate about it, you should lobby your local authorities to provide more support. This is how the system works.
Its very confusing for someone of my age Joe, these Germans!
In my early days at Philips (1960/70s) the Germans were not treated well at international meetings, they were pointedly ignored. In the sound theatre the first ever stereo recording played to visitors, was of tanks entering Eindhoven.
Then many years later I was in Frankfurt for Automechanika, on the U-Bahn there was no barrier, anyone could just walk in and get on a train, I asked “Why then do people buy tickets?” “It is the law, it must be done” was the reply, “we would not dream of not buying a ticket.” This fitted perfectly, with the 1990s general impression of Germans.
So is it that the Germans get more dishonest, the more money they have? Or have times just changed?
We tend to think of Germans being sticklers for rules and regulations eg. the VDA DIN etc in the automotive world, both of these reached all over europe and the UK. So all these bankers and company directors behaving badly is
not cricket and its time they pulled themselves together.
I remember my Opa telling me stories of sending tourists in cars with German numberplates the wrong direction. Fortunately generations since have made peace.
If but half of what one reads in the tabloids is true, it’s odd that Bernie seems happy to splash tens of millions of dollars on Disneyesque palaces in LA for his daughters, when for less he could own the Nurburgring and all its assets…
I like LA, but I know which I’d rather own…
I think you’ll find that Bernie has little control over what his daughters spend as once he gave away the funds to them (trust fund) they are allowed to do as they like within the trust rules. In fact I recall him whining about the amount of money one of them spent on a wedding. He still attended it regardless. Besides – one of the Mansions in LA you speak about was on the market originally listed for $150M (Admittedly over inflated amount) got it for just a little under 60 cents on the dollar. Of course she has gone a little over board on her ‘fixer-up’er’ reno project since… But in the end, is Petra any different then her old man in getting the the place at such a good knock down price?(!) 5 acre lot and 57 thousand sq foot home in LA?? In the end, when she gets bored or divorced, (you choose which first) she can flip the place tomorrow (or sever the lot into three parts) and make a nice profit as the market in LA will go up.
It is good to have profligate daughters when you are trying to show the world you have no control over them.
Exactly.
You’re sure?
Joe, you’ve taught us well that Bernie-speak must not be taken at face value.
Can you do us the favor of translating his comment into plain English? Or is plain English inadequate for the job?
And here I was thinking Bernie’s offer was linked to a possible pre-emptive plea bargain in a little criminal investigation proceeding elsewhere in the Bundesrepublik…
It does not work like that.
A while ago I read an excellent piece in ‘Der Spiegel’ on how Nürburgring Management in a very naive way jumped to everyone who said they had money and then got fooled. Not once, but multiple times.
Kinda like a Nigerian scheme, “you pay this large amount of money (on taxes or whatever), then we´ll give you this huge amount of money back”. Huge sums were spend in dinners and VIP treatments, that never paid off. Of course this doesn´t work, but if we can see it, why cant those people? Is it the amount of money that is blinding?