British Grand Prix at risk as Silverstone triggers release clause

The future of Formula One's British Grand Prix is in doubt after the owners of Silverstone announced they would trigger the release clause in their contract to run the event.

Watch Sarah Beecroft's video report below.

The British Racing Drivers’ Club (BRDC) formally triggered the break clause in its contract with Formula 1, now owned and managed by Liberty Media today.

It means that unless a new contractual arrangement can be reached with Liberty, 2019 will be the last year that the British Grand Prix takes place at Silverstone - which is the only viable venue for a British GP.

The move has been made because the BRDC says the event is no longer financially viable to run.

John Grant, Chairman of the British Racing Drivers’ Club, said:

The BRDC has said that they are willing to negotiate with Liberty Media in order to create a financially viable event.Mr Grant added they were fully supportive of the changes the Liberty team were making to improve the F1 experience.

The BRDC has invested £50m over the last 10 years to develop Silverstone – but their current contract to host the British Grand Prix - agreed in 2009 with the previous owners of Formula 1 – requires the organisation to pay a Promoter’s Fee to Liberty Media in order to host the British Grand Prix.

This fee increases by 5% every year. This means that over the first eight years of the contract, the 5% escalator has increased the Fee from £11.5 million in 2010 to £16.2 million in 2017. If the fee escalated in line with UK inflation, it would costs £13.6 million to stage the race.

By 2026, the last year of the contract, the Promoter’s Fee will have risen to £25m.

Mr Grant said that losing the British Grand Prix would have a negative impact that is felt far beyond Formula 1 and Silverstone. The UK motorsport industry today is worth an estimated £10.5 billion - employing over 45,000 people and exporting over 75% of its output.