ResB:
it was possibly the best dream ever.    Perhaps full description in another thread. 


Hi Rich - nice dreams you have Smiley I'm looking forward to your full report + tons of pics in a separate thread Smiley

The linked article does not contain any news nor does it tell the story in the right chronology, though the core message is correct.

What happened ? Basically the Nürburgring GmbH (the legal entity which owns the 'Ring) invested about 350 mEUR into a kind of theme park to attract more visitors and to generate income in the motorsport off season.  Problem1: the business plan was based on crazy assumptions how much visitors would come. Problem 2: no private investors were willing to fund the project.

Personally I wouldn't have invested a Cent neither because the business plan was not viable, the N'ring GmbH's senior management incapable and puppets of regional politicians. 

As the N'Ring GmbH is publicly owned (majority in the hands of the State Rheinland-Pfalz) and as the Prime Minister (Governor) of Rheinland Pfalz "needed" a prestige project the plans were not buried but taxpayers' money abused to fund the venture. At the same time the regional politicians made the public believe that no tax money would be needed and they presented some so called "private investors" (actually kind of strawmen without investing serious money or taking any entrepreneurial risks).

At some point the entire story became public and the Finance Minister of Rheinland Pfalz (Chairman of the N'Ring supervisory board) and the N'Ring CEO + other senior managers had to go.

All this came to late for a U-turn as the buildings, the roller coaster etc. have been built meanwhile.

Even worse the politicians decided it would be a good idea to rent out the 'Ring and the theme park to ...guess to whom ? ....yes, the same "private investors" who acted as "strawmen" before Smiley .

These "investors" promised to pay very high lease rates (IMHO not possible to earn...), hence the politicians tell the public: look, no prob we found someone who's paying for it Smiley.

Of course it's only a matter of time when the entire financial misconstruction will blow up and the big question is: what will happen then Smiley My bet: the taxpayer will bleed again like always when politicians try to play "entrepreneurs".

Of course a lot of 'Ring fans (those who come to enjoy motorsports) are worried what may happen to the 'Ring due to the enormous financial debt the N'Ring GmbH's balance sheet is showing now (bancrupcy...) Personally I'm not that worried because I'm sure that after the next election the balance sheet will be cleaned up (debt to equity swap..) Smiley

I think those who fear that the new management would simply double ticket prices in order to compensate for the theme park losses are wrong: what are 3-4 mEUR Touristenfahrten tickets p.a. vs. 350 m€ debt ?

Anyway, just another terrible example showing what happens when politicians "take care" of taxpayers' money Smiley

 


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public roads: Porsche 987 S Seal/Cocoa, toll road Smiley : Porsche 997 GT3 Arctic/Black