Nürburgring To Close Its Gates

[MrsJrotax101]

Nürburgring To Close Its Gates




The Rhein Zeitung newspaper said on Tuesday that well placed sources have stated the European Commission was not going to rescue the Nürburgring GmbH firm, essentially sealing the fate of the famed Nürburgring. The Rhineland Palatinate state government recommended that the Commission provide a bailout of around €13 million into the firm, and a possibility of the firm deferring payment on a €330 million loan from a state-owned bank. But European competition authorities refused to approve the plan and the firm which owns the track will now more than likely file for bankruptcy.

Administrators will then soon be responsible for all contracts, whether this be with Bernie Ecclestone for the Formula 1 races, The DTM or with concert organiser Marek Lieberberg for the Rock am Ring festival. The Rhein Zeitung said that tax payers should expect to pay significant sums of money due to the situation, as Ernst & Young estimates the entire complex to be only worth €126 million. Hard numbers show the firm is €413 million in debt, including €330 million borrowed from the state-owned bank and €83 million to share-holders. The state could end up sitting on debts of around €287 million.

The current season of events at the ‘Ring will more than likely continue, but the future will depend on the administrators and if any investors would like the venue. It all begs the question as to what will happen if the ‘Ring does go bust- will it just be barricaded off or will it return as a free public street maintained by the German government without any of the sanctioned events? Many car manufacturers have test facilities on the ‘Ring- including BMW and without the ‘Ring they will need to change much of their development process.

One person may be smiling from ear to ear and that is Top Gear’s James May as he is opposed to testing any car at the Eiffel region’s famed track.

Article from: http://www.bimmerfile.com/2012/07/18/nurburgring-to-close-its-gates/#more-22190

 

[Nomar06]

I got $100.....let's all pitch in an buy a part of it, lol.

 

[KennyGS]

Ach du Lieber!

 

[webby]

Many car manufacturers have test facilities on the ‘Ring- including BMW and without the ‘Ring they will need to change much of their development process.

charge more? It seems like every car company takes vehicles there to post times, tweak suspension setups, gain bragging rights.

 

[KennyGS]

€413 million in debt is pretty deep considering they only value it at €126 million.

Looks like German taxpayers will be inheriting any future decisions.

 

[webby]

if you're operating at that much of a massive loss, would you not make changes sooner?

 

[Danglyzoidberg]

Unfortunately as we have seen, even governments won't make changes until it is too late in regards to debt management.

 

[PainIs4ThaWeak]

Where's Bill Gates when you need him?

But for some reason - I just don't see this thing getting closed down very easily. I believe SOMEone will start throwing money at the problem.

 

[MrsJrotax101]

Ecclestone may buy Nürburgring outright

Bernie Ecclestonewas apparently quite serious when he said he would "do everything" to save the troubled Nürburgring. In fact, according to a new report from Bloomberg Businessweek, the megalomaniacal Formula One boss might just buy the track outright. That'd certainly be a quick answer to the 'Ring's financial troubles.

That said, Bloomberg reports that Ecclestone has no plans to organize a Formula One race on the Nürburgring at his own expense. Furthermore, Ecclestone has declined to comment on pricing or conditions for the alleged agreement.

The Nürburgring's severe debt crisis is hardly news – the legendary track has been going through hard times for a while now, despite efforts to boost revenue by building a roller coaster and shopping mall on the premises. The European Union has refused to bail out the ailing track, as well, specifically because it has bigger fish to fry at the moment (you know, like the declining economies of many of its countries).

A timetable for a potential sale of the Nürburgring to Ecclestone has not been disclosed.

Article from: http://www.autoblog.com/2012/07/27/ecclestone-may-buy-nurburgring-outright/

 

[12civic5speed]

james may wants to destroy the ring

 

[webby]

The government of the German state of Rhineland-Palatinate is set to make hundreds of million of euros available to the Nürburgring. This will guarantee that a loan be partially paid, making it possible for the Nürburgring to continue to operate.

According to Germany's Deutsche Welle, officials in the West German state came to the decision to keep the track afloat during a special meeting of the state legislature's budget and finance committee. The loan, in the amount of €254 million ($312 million) enables Nürburgring GmbH, who operates the track, to service a €330 million loan ($402M). That payment will allow the track to keep operating.

According to the report, several members of German government pushed for the delay of this move, citing that such a maneuver could be illegal under European law. The world-famous racetrack has fallen on hard times, and this bailout appears to be essential in its bid to stay afloat. The original loan taken out by the track's investors was to build a supporting mall and a roller coaster. Neither of these attractions has proven successful, leaving investors to plead for a bailout from the EU.

No word on how this will effect Formula One boss Bernie Ecclestone and his commitment to "do everything" to save the 'Ring. If still committed, it likely just became a $312 million more manageable undertaking for Bernie to do so.