Nürburgring goes bust

[AWD Chaser]

http://i.autoblog.com/2012/07/17/nur...nning-to-help/

The Nürburgring is officially broke. According to various German sources, the only chance the owners of the 'Ring have to fend off bankruptcy is if the track gets 13 million euros of new life injected into it. Problem is, state officials have said it's not going to happen.

In other words, the Nürburgring will go into administration and its future will at least in part be decided in court. Also up for debate will be the legality of 524 million euros worth of funding that the state has already pumped into the track, an amusement park with hotels and a shopping mall that make up the local attraction.

Reports indicate that the rest of 2012 will proceed as planned at the 'Ring. After that, it's anybody's guess what will happen to the famous German racetrack.

[Yellow_Festiva]

Man what's going on...

Doom and gloom everywhere you read??? It's been almost weekly now. Company after company.

All these figures you hear thrown around... hundreds of millions for this and that, like it's just monopoly money..

Half a Billion Euro's and a place is still 'broke'??

When will it end?

[The Monty]

If a company has half a billion Euro's thrown at it and can still fail, it deserves to be broke.

[Cam]

They should start up a donations site, I'd donate a few bucks to keep a motorsport icon alive!

Surely the car manufacturers that test there would chip in some cash too?!

[b2tf]

Woolies or Coles will buy it and put servos at every corner.

[DJM83]

Originally Posted by b2tf

Woolies or Coles will buy it and put servos at every corner.

Sweet, staff discounts on laps and maybe a christmas party there

Shame though its an icon.

[321Go]

Nurburgring GmbH have been recieving financial help from many parties for a few years now. There are talks of even funding provided by the state government to keep it alive, which is a contravention of European competition rules, and is currently being investigated by the European Union. The 'ring has been valued at €126 million, but Nurburgring GmbH is €413 million in debt! A net loss of close to €300 million for the state. Formula 1 group has tried to help by reducing the hosting fees steadily from $17M in 2007, to $14M in 2009 and down to $13M in 2011. This is a very low $ amount compared to some of the other races.

The Nurburgring isn't the only German track in financial trouble. The German F1 GP switches between Nurburgring and Hockenheim every other year. This weekends German GP is at Hockenheim, and they are also feeing the pinch. Only 54'000 tickets sold for the entire race weekend so far. Compared to 95'000 ten years ago. With the reports on Nurburgring in the German media, Hockenheimring has come out saying that they cannot afford to host the German F1 GP ever year. Sign of the times really.

[Poetic Justice]

Wouldn't some of the manufacturers that use it for testing purposes be willing to invest in it?

[topaz]

Nooooooooooooo, I haven't driven round it yet :(

[falconnut]

GOD DAMNNIT i was going to go to germany next year and now i hear this WHY WHY WHY

[Neale]

At least theres some hope, if it was in australia they would have put a housing development on it a long time ago.

Its ashame that so much money has been thrown at it & it still goes broke. The people running it have alot to answer for.

[EDManual]

I hope the nordschleife has no issues! I want to go back for some more laps!

I know its part of the whole place, but all the new stuff, ie the F1 track etc etc sure are the big ticket items which would be the problem!

[falconnut]

How is the Nürburgring and nordschleife in rl?

In the sims their AMAZING especially nordschleife

[tranquilized]

They have been struggling for a while, I first heard about financial problems a year or two back. Apparently its the amusment park and hotels etc that have caused the issues - everything was going ok before they built all that rubbish.

I'm thankfull I got to do 8 laps in 2006. I promised myself I'd do it again one day but maybe I wont have a chance...

Crap

[SPArKy_Dave]

Verdammt das ist Shizenhousen Nachrichten.

[MAD]

Originally Posted by Neale

At least theres some hope, if it was in australia they would have put a housing development on it a long time ago.

Its ashame that so much money has been thrown at it & it still goes broke. The people running it have alot to answer for.

You mean they would have built houses around it, then the owners of those houses would complain about the noise and have it, and all events, shut down.

[321Go]

Nürburgring goes bust, Nürburgring gets boost.

Nurburgring grand prix future looking brighter
2 August

The Rhineland-Palatinate state government has agreed to guarantee a EUR 254 million loan so that the Nurburgring can service its debts, Frankfurter
Allgemeine Zeitung (FAZ) newspaper reports.

And Nurburgring Automotive GmbH (NAG) chief Jorg Lindner said: “I am very optimistic that formula one will be going to the Nurburgring next year.”

FAZ said negotiations with F1 officials will take place over the summer period.

Ecclestone said: “We don’t want to lose any of the racetracks, and we need to keep the race in Germany. We will do our best.

“It has surprised me that all these tracks in Germany have financial problems — maybe they gave all their money to the Greeks,” he joked.

F1 chief executive Ecclestone was also asked about his comments ruling out buying the Nurburgring.

Did he mean that any sort of financial help is out of the question?

“Let’s wait and see. At the moment we are having talks.”

He also said that if a solution for the Nurburgring cannot ultimately be found, his sport will “go to Hockenheim” instead in 2013.

“We’re also in talks for that,” Tagesspiegel quoted Ecclestone as saying.

Another...

German state guarantees loan for Nurburgring
© AP, 2 August 2012

A German state is releasing $312 million to guarantee a loan for the financially troubled Nurburgring circuit.

The budget committee in Rhineland-Palatinate's state legislature approved the move Wednesday so the Nurburgring can service a $406 million loan and stay afloat.

The circuit, which has hosted Formula 1's German Grand Prix every other year, launched insolvency proceedings last week.

The Nurburgring's troubles and the local government's increasing financial involvement have become a political headache for state governor Kurt Beck, who backed efforts to build the circuit into a major tourist attraction.

Beck had repeatedly assured voters they wouldn't be financially liable for the redevelopment of the circuit.

Beck, of Germany's main opposition Social Democrats, on Wednesday rejected calls for his resignation.

[321Go]

Nürburgring goes bust.....

Nürburgring gets boost.....

Nürburgring gets busted......

European Commission investigating Nurburgring after repeated financial intervention
Wednesday 08th August 2012, 17:43

The European Commission has launched an in-depth investigation into the financial aid that was granted to the Nurburgring's operators.

The racetrack has been under growing financial uncertainty after it was redeveloped to include improved facilities and a leisure park. However the redevelopment failed to attract additional visitors which has resulted in delayed loan repayments and further loans from the local government to prop up its finances.

Germany has argued that the facility is a "general" infrastructure built in the public interest and open for public use, therefore is exempt from state aid rules.

However in a statement, the European Commission disagreed, saying it "has strong doubts that infrastructure for motor sport can be exempted from state aid rules," which specify that a company in financial trouble can only be granted aid once within a ten year period.

It added: "The complex benefited from several support measures, mainly in the form of loans, guarantees, capital increases and revenues from a gambling tax. These measures were granted by the German Land Rhineland-Palatinate and by public undertakings controlled by the Land.

"The support related to expenses for the construction and operation of facilities directly linked to the race track (mainly a tribune), for the construction and operation of facilities for the promotion of tourism and for the organisation of Formula 1 races.

"At this stage the Commission takes the preliminary view that all these measures, which have not been notified to the Commission, may have been granted under terms more favourable than the market conditions and may therefore confer an undue economic advantage to the owners and operators of the complex vis-à-vis their competitors. This would distort competition in the Internal Market, in breach of EU state aid rules."

European Commission announces it will investigate recent government intervention to help the Nurburgring
Wednesday, August 8th 2012, 14:17 GMT

The European Commission has extended the scope of its investigation into the aid granted to the Nurburgring circuit to help avoid insolvency.

After weeks of uncertainty about the future of the track, which faced bankruptcy following a failed revamp project, the Nurburgring and the companies operating it received additional public support measures earlier this year.

The measures included a rescheduling of interest payments on previous loans among other things.

The European Commission has announced it is stepping up its investigation into "several additional financial measures aimed at avoiding an immediate insolvency of the companies concerned" amid fears that the measures were not granted on market terms.

"At this stage, the Commission has doubts that the measures were granted on market terms and that the companies are viable without continued state support," said the EC in a statement.

"The extension of an in-depth investigation gives interested third parties an opportunity to comment on the additional measures under assessment; it does not prejudge the outcome of the investigation.

"The Commission is concerned that Nurburgring may already have been a company in difficulties in 2008, when it received the previous aid. Because of its highly distortive effects on competition, rescue or restructuring aid to a company in financial difficulties may be granted to a given company only once in a period of 10 years.

"The Commission will now investigate whether these repeated public interventions were in line with EU state aid rules."

[Neale]

Originally Posted by MAD

You mean they would have built houses around it, then the owners of those houses would complain about the noise and have it, and all events, shut down.

I ment like here with the race tracks like Amaroo & Oran Park, even when they are making money they close them & build houses on them.

I herd somewhere that the track is actually owned buy the state & is classed as a public toll road

[vanman_75]

when i was there last month it was flat out , so its all in admin- hundreds of cars lined up at 50 a lap hotel full and always booked solid , prodution test cars every week , shops full of tourists ..really makes you wonder where the money is going .No houses will ever get built there though its in the middle of nowhere .its really a fancy toll road ( thats awesome )strange that it could be broke , someones milking the money .
besides that awful news it was the most fun i have ever had in my life , overtaking road bikes in a swift is not something thats normally possible , all i can add is if its on your to do list do it now ...im going back for sure

[b0son]

[QUOTE=vanman_75]when i was there last month it was flat out , so its all in admin- hundreds of cars lined up at 50 a lap hotel full and always booked solid , prodution test cars every week , shops full of tourists ..really makes you wonder where the money is going .[QUOTE]

The fun park.

[trippytaka]

It's been happening for a while. I heard they were trying a bunch of commercial fundraising ideas... oh well.