Dennis doubts Donington will succeed
#1
01-10-2009, 02:06 PM
Dennis doubts Donington will succeed
McLaren team principal Ron Dennis is “concerned” that Donington will not be able to make a success of hosting the British Grand Prix from 2010 because its business model is not viable.
The Leicestershire venue cleared a major hurdle on Thursday when it was granted planning permission for a £100m revamp, and construction work has already begun in earnest.
But there remain question marks about its ability to raise the huge sums needed to finance both the heavy infrastructure investment and the annual race hosting fees.
Although he has revealed few details of how the project is to be funded, Donington chief executive Simon Gillett has expressed total confidence in his ability to deliver in time for the 2010 GP – adding that he relishes the challenge of confounding the sceptics.
Dennis, however, remains unconvinced that the numbers will add up – especially given the global economic woes and sterling’s steep slide against the dollar.
“I applaud anybody coming into grand prix racing and creating competition but I really do struggle to understand how the economics of Donington will work,” he said at the Autosport International show on Friday.
“They’ve had a 25% swing in the dollar and the contract will be a dollar-based contract.
“[They will have to make] a massive investment into infrastructure.
“So I’m concerned that they’ll go down this path and the economic model won’t work.”
Gillett has trumpeted environmentally friendly plans to ban access to the circuit by private cars over the grand prix weekend and institute ‘park and ride’ schemes instead – a measure designed to prevent the narrow approach roads from being overwhelmed.
But Dennis believes access may still be a problem, saying: ““I don't understand how we are going to get in and out of the place, although I can tell you I will be in a helicopter!”
And he warned that if Donington fails to deliver, Britain could lose its place on the grand prix calendar.
“I and my fellow team owners want a successful grand prix; we don’t want grands prix not being successful,” he said.
“I am concerned that as we go down this path, the economic model won't work.
“And that could be to the detriment of us hosting a grand prix in this country.
“It’s not just about us, it’s about the world; we are in a world economy, and it’s about the economic model working for the people that are hosting these events.”
The McLaren boss also called on the British government to make a financial contribution – arguing that the economic benefits generated by the country’s motorsport involvement justify spending public money on the grand prix.
“It is important for governments to realise that grand prix racing does require a degree of government support,” he said.
“For a government not to contribute anything is fundamentally wrong, because my argument is that England is clearly a centre of excellence for the automotive and motorsport world, so there needs to be government involvement.
“But it needs to be economically viable for the circuit as well.
“So in respect of many grands prix, not just the British, governments do need to be involved. No question.
“There is a justification for their involvement because of what a grand prix brings to a country.”
The Leicestershire venue cleared a major hurdle on Thursday when it was granted planning permission for a £100m revamp, and construction work has already begun in earnest.
But there remain question marks about its ability to raise the huge sums needed to finance both the heavy infrastructure investment and the annual race hosting fees.
Although he has revealed few details of how the project is to be funded, Donington chief executive Simon Gillett has expressed total confidence in his ability to deliver in time for the 2010 GP – adding that he relishes the challenge of confounding the sceptics.
Dennis, however, remains unconvinced that the numbers will add up – especially given the global economic woes and sterling’s steep slide against the dollar.
“I applaud anybody coming into grand prix racing and creating competition but I really do struggle to understand how the economics of Donington will work,” he said at the Autosport International show on Friday.
“They’ve had a 25% swing in the dollar and the contract will be a dollar-based contract.
“[They will have to make] a massive investment into infrastructure.
“So I’m concerned that they’ll go down this path and the economic model won’t work.”
Gillett has trumpeted environmentally friendly plans to ban access to the circuit by private cars over the grand prix weekend and institute ‘park and ride’ schemes instead – a measure designed to prevent the narrow approach roads from being overwhelmed.
But Dennis believes access may still be a problem, saying: ““I don't understand how we are going to get in and out of the place, although I can tell you I will be in a helicopter!”
And he warned that if Donington fails to deliver, Britain could lose its place on the grand prix calendar.
“I and my fellow team owners want a successful grand prix; we don’t want grands prix not being successful,” he said.
“I am concerned that as we go down this path, the economic model won't work.
“And that could be to the detriment of us hosting a grand prix in this country.
“It’s not just about us, it’s about the world; we are in a world economy, and it’s about the economic model working for the people that are hosting these events.”
The McLaren boss also called on the British government to make a financial contribution – arguing that the economic benefits generated by the country’s motorsport involvement justify spending public money on the grand prix.
“It is important for governments to realise that grand prix racing does require a degree of government support,” he said.
“For a government not to contribute anything is fundamentally wrong, because my argument is that England is clearly a centre of excellence for the automotive and motorsport world, so there needs to be government involvement.
“But it needs to be economically viable for the circuit as well.
“So in respect of many grands prix, not just the British, governments do need to be involved. No question.
“There is a justification for their involvement because of what a grand prix brings to a country.”
#2
01-10-2009, 03:51 PM
I hope this works out, donington is an awesome track with an incredible high speed sequence of corners.
#6
01-11-2009, 12:35 AM
+1. Let's hope they can figure something out to make it work. Then again, look at Monaco! The streets are packed and the city is basically shut down for an entire week for the race. If Monaco can make it work, on city streets no less, why can't Donington?
#7
01-11-2009, 04:20 AM
Simple. Bernie waves the fee for Monaco. The principality does not pay a dime to host its GP. the way Bernie sees it is that F1 has more to gain with Monaco on the calender with all its glitz and glamor plus it's the oldest race venue
