Formula One chief executive Bernie Ecclestone today launched his defence against charges of bribing a public official as court hearings commenced in Munich that could ultimately result in the 83-year-old losing his long-held status as the motor racing series’ most powerful figure.
A 256-page indictment against Ecclestone accuses the Briton of bribing German banker Gerhard Gribkowsky with the aim of further cementing his position as F1’s powerbroker. Ecclestone has denied the charges, claiming he was the victim of a blackmail campaign. Ecclestone said in a statement to the court: “The alleged bribery never happened. The prosecution's claims are based on statements by Dr Gribkowsky which are wrong, misleading and inconclusive.”
Today’s proceedings commenced after a damages claim filed by media company Constantin Medien against Ecclestone was rejected in February. However, a UK High Court judge did say that the Formula One Group chief executive paid a bribe amid the sale of the motor-racing business in 2005.
In his approved judgement at the High Court in London, Mr Justice Newey said there had been a “corrupt” deal with Gribkowsky to aid F1’s sale to a preferred buyer. However, he added that it could not be demonstrated that Constantin suffered a financial loss resulting from the arrangement, adding that this fact proved “fatal” to the German company’s claim.
Constantin Medien was seeking damages over the agreement that made private equity group CVC Capital Partners F1’s main shareholder. Constantin was seeking about $140m (€102.2m) in compensation over claims that Ecclestone and three other defendants – the F1 chief’s former lawyer Stephen Mullens, the Ecclestone family's Bambino Holdings and Gribkowsky – deliberately undervalued Formula One when CVC bought into the business in 2005.
Gribkowsky, former chief risk officer at BayernLB (BLB), has already been jailed for more than eight years for tax evasion and bribery after being found guilty of taking a $44m payment from Ecclestone as part of the deal. BayernLB was one of the banks left in control of Formula One after the collapse of German businessman Leo Kirch’s media empire, which owned the rights to the sport. BayernLB sold a 47-per-cent stake to CVC for about $830m in 2005.
The indictment at the Munich court alleges that the $44m payment and the promise of future employment in Formula One influenced Gribkowsky to act against the interest of his employers, aiding the sale of Bayern LB’s share in a move that guaranteed to keep Ecclestone in place as chief executive.
In Thursday’s statement, Ecclestone denied bribing Gribkowsky, maintaining that the former banker had blackmailed him by threatening to supply false information about his family trust Bambino to the tax authorities. Ecclestone’s defence team claimed the $44m payment represented hush money rather than a bribe. Ecclestone added: “It was clear, he (Gribkowsky) wanted money. He said he had always protected me, but that there was a lot he could say. I often asked my lawyers, is there a German word for blackmail?”
CVC co-chairman Donald Mackenzie has said he would fire Ecclestone if he was found guilty of wrongdoing. The case is expected to run until September with Ecclestone facing up to 10 years in jail if convicted.
source: sport business
