Silverstone could pull the plug on the British Grand Prix

The future of the British Grand Prix has been thrown into doubt as the Silverstone circuit considers dropping the loss-making race.

It has been claimed that the British Racing Drivers' Club (BRDC), which owns Silverstone, may activate a break clause and withdraw from hosting the race because of its "potentially ruinous" cost.

A letter from BRDC chairman John Grant to its members – seen by ITV Sport – warns that the board is "considering whether we should give notice before the 2017 BGP (as required) of our intention to exercise the break clause in the BGP contract at the end of 2019".

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A decision will be made by the middle of the year and this year's Grand Prix will not be affected.

"The hosting fees for races charged by F1 have risen drastically over the past two decades, with increased costs often being met by governments or regional authorities looking to the sport for promotional purposes. Silverstone enjoys no such benefits," reports The Guardian.

Even though the race remains hugely popular it has consistently failed to make a profit.

Last year's Grand Prix was attended by 139,000 fans and was won by home favourite Lewis Hamilton, but despite being an "organiser's dream" it still "fell short of budget" says Joel Hills of ITV.

"The same race in 2015 ended up costing Silverstone £2m," he adds.

The circuit currently pays almost £18m to host the race. "In return Silverstone keeps ticket sales and a proportion of hospitality money but does not share the considerable broadcast or sponsorship revenues," says Hills.

Silverstone was expected to lose the race in 2009, and the news will not come as a surprise says BBC motor racing correspondent Andrew Benson. "There is no doubt the British Racing Drivers' Club mean it when they say they are considering activating a break clause. But, equally, there is no doubt that it fundamentally amounts to posturing."

The circuit does not want to lose the race, but it does not want to pay the ever increasing costs involved in staging it, he says.

"The solution lies in new F1 owner Liberty Media, which has made it abundantly clear it wants to retain and nurture the historic European races, home of the sport's core audience, as a bedrock of its new-look F1."

Once the new owners are in place he predicts a "compromise deal that revises the terms of the contract and secures the race's future".