Closer partnership instead of sales
“Stadt und Ring only hold talks with our reliable partner, the emodrom Group, which we have known since 2012. These discussions are aimed at intensifying a partnership, whereby there is no talk of a sale between the partners. “
With this statement, the city’s press spokesman Christian Stalf answers the question from our annual series “20 questions for 2020”.
Stadt, Ring GmbH and Emodrom Group exchanged ideas about all possible ways of intensifying this cooperation. What the cooperation looks like in the end would have to be determined by the local council and the shareholders’ meeting of Ring GmbH. No decision has yet been made, according to the city’s response to our newspaper’s request.
Make the most of your influence
The answer to the question of how the Emodrom Group can obtain sufficient collateral for its investments without this is crucial for the city is that the city and the municipal council, as owners of the Ring GmbH, exercise their influence in the form of veto rights and other instruments effectively and in the best possible way the city and its bodies are losing too much influence. Business administration knows numerous possibilities of security, which can be differentiated into personal security and real security. “We cannot answer whether and which securities the Emodrom Group will choose for their investments,” explains Stalf.
The Hockenheimring GmbH is an attractive company. In addition to the newly developed business areas, this was proven by the many in-house events, concerts and business areas that support the ring economically. These formats generate positive contribution margins. The numerous visitors to the ring are further evidence. Therefore, the question does not arise how the Emodrom Group can make investments attractive if that does not run through shares in Ring GmbH, the city continues to say.
At the public information event on December 12th during the first 100 days of his term in office, Lord Mayor Marcus Zeitler emphasized that no property at the racetrack would be sold. That has to do with the special importance of the Hockenheimring for the city.
“It has a special meaning for us historically, emotionally and due to its worldwide fame. The city underlines this importance by retaining ownership of the land “,
Christian Stalf justifies this maxim. This property also enables the city to effectively influence the development of the ring in the future.
In the case of a long-term lease, such as the one concluded with the Emodrom Group for the Porsche Experience Center, the property remains the property of the city. From this strong legal position, the city can also prematurely terminate the contract of long-term tenants in the event of behavior contrary to the contract. This ensures that the city and the committees have an effective influence on their properties. The city expressly does not have this concern with regard to the long-term leases concluded on the Hockenheimring.
„We will find our own way“
Cooperation models cannot be generalized, so the city cannot name a model of functioning cooperation. “We’ll find our own way to cooperate with the emodrom Group,” she says with conviction. It is clear that she does not want any unknown investors or other third parties at the Hockenheimring. The intensification of the cooperation with the Emodrom Group aims to cover the high investment requirements with new liquid funds and thereby make the ring financially secure for the future. For business reasons, that makes more sense than the alternative of not cooperating.