Bernie Ecclestone charged in Munich
After months of investigation, Bernie Ecclestone has just been charged by the Munich prosecutor's office in connection with the Gerhard Gribkowski corruption case.
This announcement potentially carries significant consequences for F1 and its operations. Indeed, an indictment does not necessarily mean that the person concerned is guilty, but rather that there are strong suspicions that they may have participated, as an author or accomplice, in the commission of an offense.
Under normal circumstances, a CEO who has been indicted is logically pushed towards the exit so they can defend themselves, even though Stéphane Richard’s case at Orange shows that it is neither mandatory nor automatic. The same applies to Bernie Ecclestone since a succession plan has not necessarily been put in place to replace him.
Since the trial of the former German banker, many voices were echoing a potential indictment of Bernie Ecclestone as he had admitted to paying $44 million to Gehrard Gribkowsky. The defense line of the F1 magnate is that this sum was paid only under duress since the German was threatening to make false accusations to the British tax authorities, which could potentially ruin him.
He acknowledged today to the Financial Times that he had been formally charged by the Munich prosecutor’s office, which was investigating the Gribkowsky affair, who was employed by the Bavarian public bank: « I just spoke with my lawyers and they have indeed received an indictment. It is currently being translated into English. We will defend it properly. It will be an interesting case. It’s disheartening that this is happening. »
Bernie Ecclestone’s legal matters are quite extensive, as his lawyers are already defending him in British courts against the lawsuit filed by the media group Constantin Medien regarding the sale of F1 shares to CVC Capital. Since 2011, the group has accused him of selling these shares at a price below their true value, which resulted in a significant financial loss for their previous owner. BayernLB is taking a similar stance, claiming they were shortchanged by $400 million. The investment fund Bluewaters is going even further, raising the claimed amount to $650 million.
All these legal matters are not necessarily a good omen for the sports shareholders as they have reactivated their initial public offering plans. Such publicity does not encourage investors to invest in a company, no matter how profitable it currently is.
With the participation of www.Racingbusiness.fr
