Government to probe Octagon’s Silverstone deal

Octagon Motorsports, an arm of the American marketing giant Interpublic, secured a 15-year deal in December to lease and manage Silverstone, as part of a rescue plan orchestrated by the British Racing Drivers' Club which owns the Northamptonshire track. At the time, BRDC president Jackie Stewart called it a "win-win situation".

The three-times world champion stressed that a financial partner was essential to develop the circuit, and that the deal gives the whole of British motorsport a new impetus. Much of the BRDC's extra revenue from the deal will be ploughed back into grass roots racing and the development of young drivers.

But the Trade Secretary, Stephen Byers, is to refer the case to the Competition Commission, because he said it caused "competition concerns in respect of the market for the provision of motor racing and related activities".

The Commission will investigate whether the deal breaches its guidelines, as Octagon also owns the Brands Hatch Leisure group of circuits. This includes Brands Hatch in Kent, which was to have hosted the British GP until its plans were dashed by an objection from the Department for the Environment, Transport and the Regions.

The remaining venue that has shown an interest in hosting the British GP is Donington Park, which is owned by rival US-based promotions company SFX Entertainment. Management at Donington and Brands have a close working relationship, however, and the East Midlands venue would also require a massive overhaul to host the British GP, although plans are believed to have been drawn up and evaluated.

The Committee is expected to release its findings by August 6, and a negative decision would throw the future of the 2002 British GP into disarray.