Red Bull cans A1-Ring plans

Mateschitz had intended to invest around £500 million in redevelopment of the former home of the Austrian Grand Prix but, after demolition of the old facilities began late last year, work on 'Project Spielberg' was stopped after residents' complaints about the impact of the project on the local area.

And although local politicians had hoped to convince Mateschitz to change his plans so it would be more acceptable to the residents, he refused to change his ideas and has now abandoned the project altogether.

A statement issued by Red Bull said: "We cannot present a modified project to pass the legal procedures as this would not comply with the demanded 'new project'. Project Spielberg is finished therefore by legal reasons.

"Therefore the question if Red Bull would pursue the continuation of the overall project is obsolete and not relevant anymore..... We are not in a position to pursue a different project that could provide an impact on the area's infrastructure in a similar way."

The plan for the A1-Ring was for a motorsport venue to feature technical schools, hotels, motoring and aviation research centers and a development centre. Red Bull has already spent around £70 million in work on the A1-Ring, which has been completely demolished for several months now.

The news is a disaster for Austrian motorsports, which now has just one permanent race track - the Salzburgring. Unfortunately that venue is fully booked with corporate and other business events from March to October.