Formula One chief executive, Bernie Ecclestone, has said that the future of the British Grand Prix is in doubt after the managing director of Silverstone, the track which hosts the motor race, revealed financial difficulties.

The financial difficulties cast doubt on whether Silverstone's bankers will put up the letter of credit (L/C) required by Formula One to guarantee it is paid for the event.

Financial difficulties

The financial difficulties are a result of a 2013 property deal that caused so much financial damage "that it is almost impossible to trade your way out of it," according to Silverstone's managing director Patrick Allen.

The result of the deal is that Silverstone has lost significant amounts of rental income after selling a lease on 280 acres of land to clear its debts. Allen says that because of this lack of income, the track needs a new investor.

L/C support

Silverstone has a contract to host the British Grand Prix until 2026 but Ecclestone says the agreement contains a clause allowing it to be terminated in early 2016.

Concerns are growing over whether Silverstone will obtain the L/C required from its bankers, while some reports in the British media say that banks have already refused to provide L/C support to Silverstone.

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