Interpublic terminates F1 British GP contract
The US-based Interpublic Group has reached agreement to terminate its contract with Formula One Administration relating to the F1 British GP at Silverstone. On payment of US£93m to FOA, Interpublic and its Silverstone Motorports subsidiary will be released from obligations to promote the event after the 2004 race in July. The deal had been valid until 2015. Interpublic remains bound under its Silverstone lease with the British Racing Drivers Club through 2007
Interpublic says that its remaining contractual commitments connected with Silverstone are expected to approximate $62m, to be paid through the end of 2007. This estimate is based on early termination of the Silverstone lease in 2007 and includes payments of remaining amounts under the promoter's agreement for the 2004 British GP.
The loss-making group has stressed that these statements regarding the financial implications of its withdrawal could be effected by any potential legal challenge to the validity of the agreement terminating the event and promoter's contracts, or by any potential claim relating to the termination of its Silverstone lease contracts.
"This is another important step in our turnaround," said Interpublic chairman and CEO David Bell. "From the point at which I was asked to lead this company, I've made it clear that it's inappropriate for us to be involved in owning or operating venue-based motorsport businesses. We're pleased to have moved closer to completing our exit from the motorsport business."
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