Top Story

e4m_logo.png

Home >> International >> Article

International: Interpublic drives through Brands Hatch sale

07-February-2004
Font Size   16
International: Interpublic drives through Brands Hatch sale

Interpublic, the advertising and sports marketing giant that over the past two years fell victim to the catastrophic slump in both sectors, today finally sold legendary motor sports circuit Brands Hatch but said it remained committed to Silverstone and the British grand prix.

Brands Hatch and three smaller motor racing circuits at Oulton Park, Cadwell Park and Snetterton have been sold to a new company called MotorSport Vision for an undisclosed sum.

The new company has been formed by Jonathan Palmer, who already owns the Bedford Autodrome and provides facilities for the corporate events market.

"We are absolutely committed to developing motor racing at the circuits and believe that through innovation and quality enhancement we can revitalise one of the UK's most exciting sports," said Mr Palmer, whose career has involved stints as a race driver and commentator.

Interpublic, which was built up by advertising legend Frank Lowe who stepped down as chairman last year, diversified into sports marketing and sponsorship in a big way in the mid 1990s but its investment in motor sport proved a millstone around the company's neck.

Coupled with the advertising slump and allegations of accounting irregularities at its McCann Erickson division, the group has seen its share value slashed by more than two thirds in the past two years.

It announced in April last year that it was formally putting the circuits up for sale and appointed Goldman Sachs to handle the process. However, it has decided to retain the rights to the British grand prix at Silverstone after committing millions of pounds to upgrading facilities at the site.

Brands Hatch and three smaller circuits made a small profit individually, but that was more than offset by the £20m plus required to invest in Silverstone and rights payments associated with staging the annual British grand prix. Interpublic also failed in a long running battle to upgrade facilities at the Brands Hatch site so it could also stage the flagship event.

Interpublic said today its interest in British motor sport would now focus exclusively on the Silverstone circuit and that Brands Hatch Circuits, the subsidiary formerly called Ocatagon Motorsports, would change its name again to Silverstone Motorsport.

Brands Hatch Circuits boss Andrew Waller, who will remain with IPG to look after its remaining motor sport interests, said: "We are delighted that Jonathan Palmer and his team are acquiring the four circuits and believe that our sale to his company will help to safeguard the future interests of UK motor sport."

Source: MediaGuardian

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

Launches third phase of TVC campaign ‘Think it. Done’

Based in Mumbai, Usha has nearly two decades of experience in the Indian media and entertainment sector and will serve as a strategic advisor to H+K’s diverse portfolio of clients with a special empha...

Report based on media channel data in 96 countries and detailed findings from the world‘s key ad markets, which between them account for approximately two-thirds of the value of global advertising tra...