Silverstone release annual accounts.

sportsman

Sidecar racers have the biggest cojones
Contributor
This is not by some usual F1 hack reporter but by Christian Sylt who is widely recognised as an authority on F1 finances.He is editor of Formula Money the most comprehensive reference source to all financial details regarding F1.
This does not look that good for Silverstones planned developments.
http://www.express.co.uk/posts/view...ks-for-cash-injection-to-keep-racing-on-track

SILVERSTONE'S owner, the British Racing Drivers’ Club, is dependent on its lending banks to remain a going concern, its latest accounts show.

The British Racing Drivers’ Club (BRDC), which is owned by 850 racing personalities including Jenson Button and Nigel Mansell, has been driven into its current predicament following significant investment in the venue.
In December 2009, Silverstone signed a last-minute 17-year deal with Formula One’s boss Bernie Ecclestone to prevent the British Grand Prix, which is being staged this weekend, from being cancelled after Leicestershire’s Donington circuit failed to honour its contract to host the race.
Since then the BRDC has burnt through its cash and secured loans from Lloyds Banking Group and Northamptonshire County Council to fund a new pit and paddock complex.
Accounts for the year ending December 31, 2010, show its creditors more than doubled to £35.6 million and cash in the bank fell £16.4 million to £3.5 million. Silverstone has engaged PricewaterhouseCoopers to secure new investors which will ensure that its expansion plans stay on track.
 

Mezzer

A fine chap if ever there was one.
Contributor
My grandfather was in the BRDC, he had hoped to coin in on Silverstone being sold, which never happened. I think they're going to continue to struggle with the government not providing any support.
 

FB

Not my cup of cake
Valued Member
I don't want to be mean spirited but if any government of any hue suggests that tax payers money should be used to support an F1 race in Britain I for one will be on the demonstration in the streets of London. I'd rather there were no race in this country than for a single penny of tax payers money be used to support it.

Sorry, ranting, and I may have misinterpreted your comments Mezzer.
 

Mezzer

A fine chap if ever there was one.
Contributor
Well good luck with that, FB, but before you do take a look at the amount of revenue (and thereby generated tax) is brought into the region during a GP weekend. I'm not implying they should be given a free ride, but assistance is given to pretty much every other GP by their governments as they recognise the benefits.
 

VanChallis

Points Scorer
Well good luck with that, FB, but before you do take a look at the amount of revenue (and thereby generated tax) is brought into the region during a GP weekend. I'm not implying they should be given a free ride, but assistance is given to pretty much every other GP by their governments as they recognise the benefits.
I agree, but this won't happen under the tories. They will give as little as possible, or nothing, and get the maximum back out of it :D
 

sportsman

Sidecar racers have the biggest cojones
Contributor
I don't want to be mean spirited but if any government of any hue suggests that tax payers money should be used to support an F1 race in Britain I for one will be on the demonstration in the streets of London. I'd rather there were no race in this country than for a single penny of tax payers money be used to support it.

Sorry, ranting, and I may have misinterpreted your comments Mezzer.
I agree FB. But those who glibly say that other GP's recieve goverment support although it is true don't consider the alternative taxation systems that operate in those countries.
The governments that do support GP's operate event focused taxation systems in additon to the standard VAT (in Engand) to recover the costs.
Austin for instance is recieving $25 million a year from the Texas Major Development Fund.That is not the US Federal government the equivalent to the English goverment.
This money is recovered by an additional tax on all related businesses who profit from the event.ie hotels,restuarants, car hire and all businesses in the State of Texas.Not the entire USA.This money is raised in Texas and stays in Texas.
So if Northamptonshire County Council made a grant to Silverstone and then applied a 5% tax to all tickets and businesses in Northamptonshire and Buckinghamshire who profit from the GP then it would be feasible.
 

Mezzer

A fine chap if ever there was one.
Contributor
I agree FB. But those who glibly say that other GP's recieve goverment support although it is true don't consider the alternative taxation systems that operate in those countries.
The governments that do support GP's operate event focused taxation systems in additon to the standard VAT (in Engand) to recover the costs.
Austin for instance is recieving $25 million a year from the Texas Major Development Fund.That is not the US Federal government the equivalent to the English goverment.
This money is recovered by an additional tax on all related businesses who profit from the event.ie hotels,restuarants, car hire and all businesses in the State of Texas.Not the entire USA.This money is raised in Texas and stays in Texas.
So if Northamptonshire County Council made a grant to Silverstone and then applied a 5% tax to all tickets and businesses in Northamptonshire and Buckinghamshire who profit from the GP then it would be feasible.
I disagree that a) the comment is 'glib', or that b) your analogy with the US GP is a good one. The best way to think of the US is as 50 countries that work co-operate (sort of), rather than a single country, so a better analogy for the US would be a European country and the European parliament, the European parliament does not provide funds to specific nations for their event. Remember also that Americans as a nation feel that they want their national icons to be impressive, hence a bigger issue than simply the bottom line. Please feel free to disagree with me. As I sip my Corona here in currently-cloudy Florida ... Actually that's a slight exaggeration, as you can probably tell I'm in the thick of a critical program management issue. :)
 

sportsman

Sidecar racers have the biggest cojones
Contributor
The US is I agree a collection of individual states (countries) if you will.But unlike the UK each individual state sets its own taxation levels.
The UK is different inasmuch as Parliament sets the taxation levels for the entire country.Wherever you live in the UK in any of the counties (states) the taxation rates are identical.Local taxes do vary according to areas but these are for local services.
US states are free to impose local taxes ie hotel taxes, entertainment taxes and event taxes taking place within their state boundaries.UK County or Borough Councils do not have that authority in the UK.
http://www.ci.austin.tx.us/news/2011/downloads/major_event_trust_fund_gain_formula_1.pdf Table 1 presents a summary of the economic impacts of fan spending discussed in Appendix A
(in particular, see Tables 4 and 5 in Appendix A). In total, out‐of‐state fan spending is expected
to reach $201.1 million on the Formula One event. Based on the relevant state sales tax rate,
state hotel tax rate, state rental car tax rate and state alcoholic beverage taxes, it is estimated
that this level of direct event spending will generate $11.6 million in tax revenues from the gain
to the state under the applicable taxes allowed to be deposited into the Major Event Trust Fund
in support of this event.
 
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