- Created: 19 July 2012
The future of motorcycle racing at Nurburgring could be under threat after the major shareholder in the legendary circuit revealed that it could enter administration.
Nürburgring GmbH, which operates the 90% state-owned circuit situated 35 miles west of Koblenz, owes around £235m to the Rhineland-Palatinate bank following redevelopment work in 2009.
Circuit operators applied to the European Union’s Executive Commission for an emergency loan of £10m to cover interest repayments, but that is not expected to be granted, forcing Kurt Beck, the state governor for the Rhineland-Palatinate to claim that there was a “high probability of insolvency at the end of the month due to a lack of liquidity”.
The Nurburgring currently hosts rounds of the World Superbike and Formula One championship on the Grand Prix circuit whilst the original 13 mile Nordschleife circuit is a popular tourist attraction for car and motorcycle enthusiasts.
The Nordschleife circuit does generate healthy profits for Nürburgring GmbH, with members of the public able to pay €26 for a lap of the circuit. Profits are also generated from car companies looking to test new vehicles. However, these profits do not cover the interest payments on the debt, thought to be around £10m.
The private company that operates events at the circuit, Nurburgring Automotive GmbH, said that it wasn’t affected directly by the insolvency of the owner and would continue its operations.
The German round of the World Superbike championship is due to take place on 9 September.