If the plan goes ahead it could be very good, however don't hold your breath, the numbers don't stack up.
The consortium have held presentations around the Motorsport world for more than a year now and the feeling among some very senior figures is one of unsustainability.
The level of investment required to compleat the project as planned, is around £230 million based on current estimates, so do the maths. Lets assume that the venue (all tracks kart, car etc.) are used every weekend throughout the year hired by motor clubs @ an average hire charge of £25k per weekend for cars/bikes and £3k per race day for karts. Add to this possible testing hire charges for the main circuit @ £2.5k per day. It does sound viable, BUT, where are these customers going to come from? Maybe if it was the only race facility in the UK and the only testing facility in Europe it may be able to to make a good return on investment.
They have featured super bikes heavily in their promotion and yes this together with World and British super bikes they could see these as big income generators but they also attract a massive cost to promote and as such the actual profit margin for such events in not that great.
As for testing income, in these days of limited testing for formula racing in all FIA classes and a poor economic climate if the circuit was able to attract all of the private testing undertaken in Europe during a racing year this would not even amount to the interest alone on a £230 million investment.
Take a look at the existing UK circuits, Silverstone included, and you will see none are making significant profit margins. The introduction of yet another venue that requires a large weekly income simply to service it's own running costs and service a return on such a significant investment can do so only at the expense of the existing circuits and their customers, in other words you!
The Welsh assembly government have said that the planning permission granted by the local council may be put into review at a National level such are the overall concerns for the environmental and economic effects of such a scheme. A brand new venue would be nice but at what cost?
BTW. Has anyone ever been to Rassau the proposed site? I wonder how many days per year will be lost to poor weather and low cloud or fog, it's on the top of the heads of the valleys road often the victim of bad weather. Snow ice and fog not being compatible with general Motorsport.
|
|
looks like the new Welsh circuit is on its way !! by 'buzzinrussell' (10 Jul 2013 @ 16:14)
