I was saddened to see that Donington Ventures Leisure Ltd has gone bust. Amid all the furore about the location, and very existence, of the 2010 British Grand Prix it has been easy to forget that DVL had a vision that extended far beyond a single race in the F1 calendar.
DVL CEO Simon Gillet is an immensely likable man and it is easy to agree with his views on just about anything, such is the clarity and passion with which he communicates them. I am not certain of exactly whose idea it was to fund a race track through debenture sales, but when I heard him expound the virtues of his scheme, I completely understood what he was trying to do.
Yet the basic assumption behind the scheme was deeply flawed and in the final analysis I am surprised that it got as far as it did. To expect regular race fans to subscribe to multi-year debenture seats in unbuilt stands, to attend multiple races each season to justify the cost, at a location that is remote from the centres of commercial power in this country, was just too much of a stretch. The approach works well in sporting environments where tens of thousands of loyal fans live locally to a facility (The Emirates, for example) where the number of games is high and demand historically outstrips supply.
But motor sport doesn’t work like that. The Bahrain International Circuit concluded after five years of hosting a Grand Prix that the race earned the circuit no money at all; the cost of organising and hosting the event over five days is significant. But what it did do is confer on the circuit the awareness, credibility and gravitas to allow it to promote itself on the open market as a venue for events throughout the remaining 360 days of the year. The BIC is successful at executing this strategy and hosts hundreds of events on track and at its various facilities each year, which earn more than enough to compensate for its F1 loss leader.
Donington chose not to attempt to replicate this model, perhaps feeling that without the steady stream of government business that the BIC enjoys (it is government funded), the East Midlands facility would struggle to survive as an independent exhibition and events venue in the manner that Gillet had conceived. Instead it chose to focus on hosting lesser races and driving events on a more regular basis, and charging regular punters more than they could bear, for the privilege.
There is insufficient demand for Motorsport away from F1 to justify this approach, and that is why DVL’s dream has died. Sad, I know, but true.
By Scott Garrett on November 20th, 2009
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