Bernie Ecclestone officially charged in Munich
After being indicted in July, Bernie Ecclestone had to respond to the accusations made by the Munich prosecutor's office. It decided that the explanations provided were not sufficient. Bernie Ecclestone will therefore have to face a new trial.
The world of F1 has been on edge for several years due to the investigation conducted by the German authorities. Indeed, it could have significant consequences on the future of the sport, as this trial could permanently remove the F1 supremo, Bernie Ecclestone, raising questions about his future.
Bernie Ecclestone will therefore have to respond to the statements made by Gehrard Gribkowsky during his own trial when he announced that he had received a bribe from Bernie Ecclestone in the context of the sale of shares held by BayernLB. While the F1 CEO admits to having made this payment, he disputes the reason. According to him, it was to protect himself against potential accusations from the British tax authorities.
The consequences of the official announcement of an upcoming trial quickly materialized. Bernie Ecclestone announced that he would be leaving the F1 board during the proceedings, although he remains the CEO: « After discussions with the board, Mr. Ecclestone proposed and the board accepted that until the end of the trial, he would step down as a director, with immediate effect. Therefore, he relinquishes all his obligations and responsibilities until the resolution of his case. »
However, this does not mean that Bernie Ecclestone is abandoning F1, as he remains the CEO of the sport but will no longer be able to sign anything on behalf of F1: The board believes it is in the best economic and sporting interest for Mr. Ecclestone to continue handling day-to-day affairs but will be subject to greater oversight from the board. Mr. Ecclestone has accepted these conditions.
From now on, any contract impacting F1 (including with circuits and teams) must be approved both by Peter Brabeck-Letmathe, the chairman of the board, and by Donald Mackenzie, the vice-chairman of the same body and chairman of CVC Capital, the main shareholder of F1. The former CEO of Nestlé positions himself as a potential long-term successor for F1. This would have the merit of bringing an external perspective to F1, while providing undeniable external credibility in the management of internationally-oriented companies.
This could be an undeniable advantage in the context of a roadshow for an initial public offering. Nevertheless, such an approach no longer seems to be relevant since successful IPOs have multiplied in recent months without the F1 project returning to the forefront. This shows that CVC Capital is more likely seeking a private agreement with other investors rather than putting its stake on the open market.
In this context, it is interesting to note that yesterday rumors appeared in some media suggesting that Bernie Ecclestone would be ready to save a monument of German motorsport, the Nürburgring, or that he is in talks with two teams possibly interested in joining as early as 2015… This kind of information seems to surface in the media just as bad news for the F1 magnate…
With participation from www.Racingbusiness.fr
