Formula 1 boss Bernie Ecclestone accused of bribing BayernLB for 2006 CVC deal – Formula 1 news
Formula 1 boss Bernie Ecclestone has been accused of bribing Bayerische Landesbank (BayernLB) for his involvement in negotiating a deal with CVC Capital Partners.
The prosecution in Munich declared that Gerhard Gribkowsky, former member of the BayernLB management board and the head of the rights transfer of Formula 1, received a total of £27.5 million from Ecclestone in order to make sure that the Formula 1 is bought
by CVC and no one else.
Initially, BayernLB was the owner of 48 percent shares of Formula 1 which they wanted to sell. It is alleged Bernie paid the amount to Gribkowsky to ensure that the shares were sold to CVC.
Ecclestone himself had 25 percent shares in Formula 1 at that time under a family business named as Bambino Trust and Bambino Holding.
After CVC became the owner of 48 percent shares, they bought the shares from Ecclestone’s family trust as well and regrouped the firm which was called as Alpha Prema.
Although Ecclestone has met the prosecutors in Munich to clear his name from the controversy, the prosecutor’s spokeswoman Barbara Stockinger confirmed the news.
The prosecutor also stated that not only Gerhard made sure that CVC became the owner of the company but he also illegally used BayernLB accounts to pay Ecclestone an amount of £25.8 million as commission for negotiating the deal between the Bank and CVC.
The prosecutor has stated that if found guilty, Gerhard will face 10 years behind the bars for using BayernLB funds illegally to pay Ecclestone. Along with that, Gerhard also used bank funds to pay Bambino Trust an amount of £15.6 million.
Ecclestone has been the head of Formula 1 Management from late 1970s. He is currently the head of Formula 1 commercial rights under his partnership with Alpha Prema. Currently, 70 percent shares of Formula 1 are with CVC.
The 2011 Formula 1 season continues in Germany but it will be interesting to see how Ecclestone, CVC and Gerhard work their way through the controversy.
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