September deadline for Donington

UPDATE Donington Park, the track taking over from Silverstone as the venue for the British Grand Prix in 2010, needs to raise almost £40 million to upgrade the track and facilities in time to host the race.

According to a report in UK newspaper the Telegraph, the investment required for track improvements and the construction of a new pit and paddock complex and hospitality suites, has not yet been raised.

Owners Donington Ventures Leisure Ltd (DVLL) have until September this year to satisfy Formula One boss Bernie Ecclestone that plans are on course.

DVLL reportedly intend to fund the redevelopment with bank debt secured against future ticket revenue, largely drawn from the corporate sector. The track owners are reportedly planning to sell over 6,000 seats to corporate customers, with annual fees of around £5,000 a seat guaranteeing £30 million a year in revenue from just five to 10 per cent of paying customers.

Planning permission for the first stage of improvements to the circuit is expected to be granted by North West Leicestershire District Council tomorrow.

01/07/09 (GMM) Circuit chiefs at Donington Park have until September to cement a place on the 2010 formula one grid, the sport's chief executive Bernie Ecclestone says.

The track is expected to be granted council planning permission to commence $150m in necessary upgrades, but the other outstanding consideration is the securing of the actual funding in the midst of a global financial crisis.

"They have a contract with us that I am sure they understand, and I would imagine they have considered the state of the market and have a fall-back position," Ecclestone, who penned the 10-year contract last July, told the Daily Telegraph.

"I am relying on what they told me they will deliver, and we have a September deadline, from memory, to see that all is as it should be. If it is not then we have four or five venues ready to stage a race," the British billionaire said.

Andrew Hambel, chief executive of ISG – the company engaged to structure the seat packages for the 2010 race – admits that the world's current situation is an obstacle for Donington.

"Now is neither the best time to be persuading people to part with money for a new sporting proposition, nor is it the best time to be asking banks to back an offer of this sort," he acknowledged.

"Whether it all stacks up to deliver the kind of financing we need is uncertain, but we would not be devoting the time we are to putting this package together if we were not confident that we can deliver."