Statement From Motion Works Concerning The 2008 Silverstone Classic
31 December 2008 - A number of recent statements and press articles concerning the 2008 Silverstone Classic and Motion Works UK Limited (MWUK) related role have inaccurately stated the facts behind the formal arrangement and the events financial results.
To clarify the position:
• Classic Automotive Events Limited, who subsequently changed their name to CAE (Silverstone) Limited (CAE), is owned and funded by three independent private investors.• MWUK introduced CAE to Silverstone Circuits Limited (SCL) and in December 2007 CAE secured a 5-year licence from SCL to stage the annual Silverstone Classic event from 2008 to 2012. CAE became the licence holders and investors in the annual Silverstone Classic event. • CAE appointed MWUK to organise and promote the event during the above 5 year term on their behalf.• MWUK’s brief from CAE was to establish and present a high-profile event that would restore the stature of the event back to the level it enjoyed during the 1990’s and deliver an agreed return on investment over the course of the 5-year term.• Throughout the organisation and development of the 2008 event, the CAE investors were involved in strategic planning meetings, contributed to the event planning, proposed elements they wished to see incorporated and agreed the event budgets and forecasts.• Whilst the advance sale of tickets, sponsorship, race entry fees and other related areas were close to budget, and in some cases exceeded budget, on-the-day ticket and other related sales fell short of forecasts and this was the principle cause of the financial loss of the 2008 event.• Ignoring additional costs approved in advance by CAE, expenditure exceeded forecast by a nominal margin only, within an acceptable level on a budget of this scale and an event of this kind.
The 2008 Silverstone Classic exceeded expectations in many areas and according to the numerous post event press articles and many letters of congratulations following the event, achieved its main objective in commencing the repositioning of the event as one of the country’s leading classic race and motoring festivals and setting the platform for the coming 4 years.
The overall financial result of the 2008 Silverstone Classic was disappointing and short of target. However, it was always recognised that year 1 would be the most unpredictable but that, over the 5 year term, the event would deliver a healthy return on CAE’s investment. Motion Works remains confident that this would have been the case had they continued in their role.
Prior to receiving notification from CAE that they would no longer be the organisers, Motion Works had completed a considerable amount of work on planning the 2009 event and regret that they will not to be involved in the future. We do, however, wish and hope that the event continues to go from strength to strength and becomes for Silverstone Circuit, once again, one of Europe’s premiere classic festivals, to be enjoyed by both competitors and spectators alike.
Roger EtcellManaging Director