Nurburgring set to go bankrupt future German GP in doubt

The Nurburgring could be on the brink of administration according to reports in Germany, after the circuit was refused a bail out from the European Union.

The state government owns around 90% of the Nurburgring's holding company, Nurburgring GmbH, and leased the circuit to Nurburgring Automotive GmbH in a deal lasting until 2040.

The Social Democratic Party invested around €500million in redeveloping the circuit and improving facilities over the last decade, but, having lost their majority at the last election, will not invest anymore.

According to reports in the German media, the circuit's holding company also owes over €300million to the state owned Bank of Rhineland-Palatinate. Newspaper Rhein-Zeitung says the application to the EU for €13million was to service interest on the loan.

State governor Kurt Beck confirmed that the goverment were to launch insolvency proceedings as there is a, "high probability of insolvency at the end of the month because of a lack of liquidity."

He said his government decided to pre-empt that by choosing to launch "orderly insolvency proceedings."

Formula 1 is due to return to the Nurburgring next year as part of its deal to alternate the German Grand Prix with Hockenheim, which hosts the race this weekend.

However, with no money available to pay race hosting fees at the Nurburgring, and Hockenheim already stating they cannot afford to host the race each year, the future of the German Grand Prix could be in doubt.

Source:Sky Sports

Quiet sad really. Though in that case, scrap Valencia and allow Hockenheim to be the European GP.

That is indeed sad, but with the German economy in a fair amount of turmoil, the government is looking to recoup money wherever it can and I suppose F1 is a luxury they simply can't afford right now.

@Critical-mass: Hockenheim have said they can't afford to host the race every year. At best they could alternate with Valencia as the European GP. Or better still they could alternate with Spa...

Spa has signed a new 3 year deal so that's out the window and Valencia is alternating with Barcelona

Could always share with a returning French GP?

dyrewolfe wrote:That is indeed sad, but with the German economy in a fair amount of turmoil, the government is looking to recoup money wherever it can and I suppose F1 is a luxury they simply can't afford right now.

@Critical-mass: Hockenheim have said they can't afford to host the race every year. At best they could alternate with Valencia as the European GP. Or better still they could alternate with Spa...

lol Sorry what i meant was just what you said DW. Ignore what i put. Alternate between the 2 if need be. Besides i think the European race should be at different venues each year. At least go round a few european tracks in cycle.

No, id like Spa to stay a yearly event. Love it too much to see it go like to alternative years like before.

Id like Magny Cours to come back - not everyone favourite. Though intrigued with the Paul Ricard Circuit. Seen bits of the track on World Series races but no open wheeled racers.