Circuit Of Wales Denies Funding Issues Cause Donington Contract Breach

The Circuit of Wales has disputed the chain of events that led to Donington Park rescinding the contract the two parties had to organize the British Grand Prix at the Leicestershire circuit. In a statement issued to the press, the circuit laid the blame for the breach firmly at the feet of Donington Park. Donington had claimed that they had not received the funds agreed, which were necessary to bring the British track up to the standard required to host a Grand Prix, but the Circuit of Wales statement claims that the sequence of events is precisely the reverse. Without a contract with Donington, the Circuit of Wales claims, they were unwilling to provide the funds which Donington needs for upgrades.

The statement also says that the Circuit of Wales will continue to work to host the British Grand Prix at a track in the UK. Given that only Silverstone has the necessary FIM homologation papers, that would appear to be the only venue capable of hosting a MotoGP round at short notice. As the Circuit of Wales holds a contract with Dorna for the right to organize the British GP, it is their prerogative to try to find a new venue and organize and promote a race. That will be neither cheap nor easy. With so much at stake, it is common practice for contracts such as these to have penalty clauses, should one party or the other fail to deliver on the terms of the contract. 

With the British Grand Prix less than eight months away, the Circuit of Wales have their work cut out. With Silverstone reported to already be in talks with Dorna for the rights to organize the 2015 MotoGP race, the Circuit of Wales will need to hurry.

Below is the statement issued by the Circuit of Wales:

The Circuit of Wales is disappointed to have been unable to reach a contractual agreement with Donington Park Racing Limited (DPRL) to host the British round of the 2015 Motorcycle Grand Prix World Championship.

After initially agreeing Heads of Terms with the board of DPRL in September 2014, both parties were subsequently unable to agree further terms to form a legal contract. Contrary to claims by DPRL that the Circuit of Wales is unable to meet the funding arrangements, we are unwilling to provide the significant funding that DPRL required for the necessary track upgrades to host the British Grand Prix without a signed contractual agreement. We have all of the funding necessary in place to promote and host the 2015 race in the UK. All funding for the flagship Circuit of Wales regeneration development in Blaenau Gwent is on track with works due to start later this year following the outcome of the public inquiry in March.

The Circuit of Wales will continue to promote the British round of the FIM MotoGP™World Championship and is fully committed to delivering the event later this year.

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It's a condition of the BT contract with Dorna there has to be a British Grand Prix.
No race BIG penalties for Dorna.
Silverstone will have Dorna by the you know whats

Depends on how BIG the penalty is. Silverstone only 'wins' if their demands are less then the potential penalties otherwise there is little incentive to cave to unreasonable demands.

If anyone knows the stipulations please do share...

The Circuit of Wales still holds the contract to organize a British GP. Under the terms of their contract, they must arrange one. If Donington has fallen through, then CoW's only option is Silverstone. CoW will have to negotiate the deal with Silverstone. Silverstone will of course demand a large cut in the fee they have to pay, but CoW will still have to pay the same amount to Dorna.

You are right to say that Silverstone has someone by the short and curlies, but it's CoW, not Dorna. Dorna get paid either way.

I'd hazard a guess that they at least had a 'heads of agreement' or pre-contract, but perhaps one that wasn't sufficiently clear about what came next, the finalised contract or the money.

Shame though. I much prefer Donnington to Silverstone, the former just oozes character, the latter still feels a bit like a converted airfield.

all those that believe CoW have the funding in place..........

Many people have a good nose for PR BS, which is exactly what the above statement sounds like :(

The moment I learnt that the circuit was to be built on "common land" I knew that this was a none starter - unless someone VERY rich and influential got involved.

Common land is something pretty special in England and Whales. It is land that is available for all to graze there livestock on (even though no one does now!) and dates back centuries if not millennia. It's status is not easily and especially not quickly changed.

That said I'm chuffed the race is back at Silverstone, a much more fitting venue for a world class event than Donington. And the paying public will be pleased too - far more attend the race at Silverstone than ever did at Donington