Formula 1 owners Liberty Media realise Silverstone is the only realistic choice of venue for the British Grand Prix according to the chairman of the British Racing Drivers’ Club.

The BRDC, which owns the circuit, activated a break clause in its grand prix contract last year. Its current deal expires at the end of the 2019 F1 season.

BRDC chairman John Grant told RaceFans the two parties are not close to agreeing on terms for a new contract yet.

“We’re making progress,” he said. “We’ve had a number of discussions with them. But we’re not there yet, we’re some way apart.

“I think they’ve really come to recognise that they need a British Grand Prix. They recognise, although they might not admit it in public, Silverstone is the only realistic option.

“And we both want to do a deal to keep it there. We both recognise we’ve got different objectives and we’ve got to have a deal that works for both of us.”

RaceFans understands gate receipts from this year’s race will amount to £18 million, leaving the BRDC with a £6 million shortfall to meet its current fee. It is seeking a reduction in its fee from Liberty Media as part of a new deal which could include a revenue-sharing arrangement.

“We’ve offered various things which they have not been particularly receptive to,” said Grant. “We think it has to be some sort of sharing element to it.”

With uncertainty over Formula 1’s future rules beyond the end of 2020 and F1’s only British driver Lewis Hamilton yet to commit to the sport beyond this season, Silverstone may consider a short-term extension on its current deal.

However Grant said there is no immediate need to reach an agreement. “We have time,” he said. “We don’t need to do anything just now.”

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2018 F1 season