Investment Costs

The total investment amounts to around 215 million euros. The Nürburgring GmbH will be responsible for a sum of around 135 million euros, primarily for the modules near the race track such as the Grandstand, Boulevard, Indoor Arena, Event Hall, Welcome Center and Indoor Attraction section. A large part of the financing and the risk will be borne by private investors. The investor for the Hotel, Motor Sport Resort and “Eifel Village” (Dorf Eifel) modules will contribute around 80 million euros. These facilities will be run by operators with a lot of experience not only in the tourism business but also in the corporate customer business. To fund and minimize the risk of the total investment, other private partners of the Nürburgring will in addition make available around 40 million euros for construction work and equipment, as well as for rents and licences for individual modules and facilities. For the Nürburgring GmbH, the percentage of the total risk is thus less than 50 percent.

The economic risk for the Nürburgring GmbH has been analysed in detail by the auditing company Deloitte. The experts confirm that the calculations estimated for the business plan are plausible and conservative, that the construction project will bring in considerable additional income as business develops and that, as a result, the company can cover this investment. The investment share provided by the Nürburgring GmbH does not come from federal state or county funds but is financed by the Nürburgring GmbH. According to the Deloitte opinion, the Nürburgring GmbH would still be able to meet its obligations without federal state aid, even if business were to develop much less positively than is conservatively planned at the moment. The concept is economically viable. A further opinion confirms in addition that no extraordinary risks exist as a result of the actual building project.

The Nürburgring GmbH generates an ordinary return in its core business. The losses sustained in the past few years were due to hosting Formula One. Compared to these however, the value added for the local economy was considerably higher. The company has a solid equity capital base. In the past 15 years the Nürburgring GmbH has invested the profits it itself generated, amounting to approximately 100 million euros (including those from Formula One), in a strategically sensible way, for example in a modern pit building and in upgrading the racing tracks, and it did so without any appreciable public assistance. Further millions will be invested in the next few years, in particular in the 80-year-old Nordschleife in order to preserve its usefulness to motor racing and industry.