The Nürburgring Looks Safe, for Now, Thanks to a $312 Million Loan

The Famed Nürburgring is in Financial Trouble

In the 11th hour, German officials have come through for their famed racetrack, the Nürburgring . The Ring had been in a bundle of issues, mostly caused by the decision to use public funds to build a roller coaster and a hotel in the vicinity of the track. This loan ultimately went into default and the European Union was, and presumably still is, investigating the legality of these funds.

This latest loan was provided by the German state Rhineland-Palatinate (RLP) and totals €254 million ($312 million at the current exchange rate) to help keep the track afloat and ultimately assure that its original loan is paid back.

The Christian Democrats (CDU) were strongly opposed to the loan and even went as far as to say it violates the EU’s competition laws. The German finance minister rejected the CDU’s questions of legality and continued on with the loan.

So for now, we can consider the Nürburgring safe, but for how long? If it spiraled toward bankruptcy once for reasons that appear unresolved, what’s going to prevent it from doing so again? For now, we’ll just have to wait and see.

We are also interested to see if Bernie Eccelstone will hold true to his offer to help the Nürburgring by offering sanction-free F1 races next year. With the condition of worldwide road racing leagues deteriorating, we are willing to bet that Eccelstone forgets his promise pretty quickly now that the Ring is not in immediate danger.


11 comments:

If I had the money to facilitate and manage that track, it’ll never face a problem like that.

Maybe they were used to the facilities and why they don’t try to consider something new like the track on Thailand?

Yeah, they are safe for now. But they should do something to avoid being wiped out. Racers will surely lose a good race track if this one goes away.

If the $312 million loan is given to the funds of the European union or invested on it, it might have helped to ease the Eurozone crisis that takes place on the continent.

Nürburgring is one of the famous tracks around the world. So it’s better to keep it from losing funds.

I don’t think you were right about that matter. Nürburgring should always be kept for racing purposes or testing ground for the pre-released vehicles.

If they open this Nurburging in public that is equal in fees, maybe it will help them gather funds.

I don’t think the $312 million is enough for the survival of the Nurburging.

Good. Now that they have enough funds to run this year, we need not to worry about the Nurburging.

At least, the Nurburging is safe until the EU fixes the crisis on the European Nations.

Yeah, how long will it be safe for the bankruptcy and how long will it take to have that loan in the good and proper use amidst the issues regarding on the European Union?

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