Report: Valencia in talks to break F1 contract

According to a latest media report, Valencia’s formula one foray is set to be officially folded.

There were already reports last week in which it was stated that according to a draft 2014 calendar that was quietly doing the rounds, the Spanish port city may not host a grand prix. This news was doing rounds despite earlier reports that Valencia and Barcelona have agreed to annually alternate a single Spanish grand prix from 2014 onwards.

But the fact remains that the tickets for next year’s Barcelona round have, already gone on sale, a May 11 date has been set, and according to El Mundo newspaper, the alternation contract was actually never signed.

Now the latest report by Diario Sport newspaper states that the reason why negotiations between Bernie Ecclestone and Valencia president Alberto Fabra took place was to decide as to how much Valencia should pay for breaking its existing race contract. Reportedly, F1’s chief executive wants Valencia to pay the entire termination penalty of EUR 33 million, but Fabra is in talks to soften and reduce that maximum hit.

The newspaper report further claims that Valencia treasurer Juan Carlos Moragues Ferrer said recently that, amid the economic crisis, the government wanted to meet their obligations without having to close schools or hospitals.