The future ownership of Silverstone may soon be decided with the likelihood that new investors will be sold a long term lease for the Northamptonshire circuit by the current owners, the British Racing Drivers Club.
Stories circulating in the last few days were suggesting that the Qatar Investment Authority was in pole position having been given preferred bidder status although this was dismissed as "speculation" by the BRDC and denied by QIA.
What is not in doubt is that the BRDC commissioned PriceWaterhouseCoopers, one of the world's top four accountants, to prepare an information memorandum and sales document for potential investors earlier this year. Since then PWC and the BRDC board have been talking to interested parties.
It is believed they have narrowed it down to one party who will now conduct intensive "due diligence" and negotiate terms laid down by the current owners including the security of the 760 acre site as a motor racing circuit.
Recently, the club applied for planning permission to their local authority in respect of further development including a science, technology and business park plus three hotels. It is this potential which is attractive to bidders while the motor sport side, in particular the Formula One British Grand Prix, is important to the Silverstone "brand."
But while motor sport provides the glamour, it does not make much money. It has been reported that to bring the F1 circus to town costs something approaching £13m and this increases at 5% a year for the remainder of the 17 year contract. MotoGP and WSB charge something like €3m and €1m respectively.
The recent developments at Silverstone have loaded the club with debt and it would not be possible to complete any further development without a lot of new money coming in. The prospect of a deal worth £200m or more must seem very attractive to the 850 owner/members.
Should the Qatar Investment Authority be successful, Silverstone will be another iconic English brand which it has snaffled, the other being Harrods! It has also won the contract to develop the Olympic site in London after the 2012 Games.
