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Bernie charged in F1 bribery case

Published Jul 17, 2013

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Bernie Ecclestone's eye for a deal has made him a fortune and turned Formula One motor racing into a global money-spinner, but bribery allegations threaten to end his long reign as the head of the business.

The Formula One Chief Executive has been indicted in Germany in a case relating to the sale of a stake in the motor racing business eight years ago, a spokesman for a Munich court said on Wednesday.

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The indictment has been sent out, charging the 82-year-old Briton with bribery and breach of trust, the spokesman said.

At issue is whether Ecclestone bribed a German banker in a business deal under which lender BayernLB sold a 48 percent stake in a Formula One holding company to CVC, a private equity investor that Ecclestone was keen to see as a new shareholder.

Ecclestone, who could not immediately be reached for comment on Wednesday, has denied wrongdoing.

Ecclestone remains central to the motor racing business he built into a global money-spinner and the diminutive chief is a familiar figure at its races. He has always said he has no plans to retire and there is no obvious successor in place.

The case comes after Ecclestone made payments to Gerhard Gribkowsky, BayernLB's former chief risk officer, who was jailed last year for tax evasion.

Ecclestone has denied that the payments to Gribkowsky amounted to bribes. Instead, he told a Munich court in November 2011 that he paid Gribkowsky to “keep him quiet” after the German put him under pressure over his tax affairs, and not to smooth the sale to CVC.

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BayernLB had ended up with the Formula One stake following the bankruptcy of the media empire of Leo Kirch. BayernLB assigned Gribkowsky with the task of hiving it off.

CVC owned a 63 percent stake in Formula One, but has since cut that to around 35 percent in a series of deals.

LIFETIME IN RACING

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A former used-car salesman, Ecclestone has been immersed in motor racing since moving into team management after failing to make it as a driver in the 1950s.

He gained control of the commercial rights to the sport, profiting from a growing TV market and expansion into emerging markets.

After years as Formula One's public face, racing fans ask him to pose for photographs and sign autographs when he appears at race tracks alongside drivers like German world champion Sebastian Vettel and Briton Lewis Hamilton.

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Interviews and conversations, at least around the grey paddock bus with blacked-out windows that serves as his control centre during the European races, tend to be quick and to the point.

Though there is no time for small talk or hesitation, Ecclestone always provides a headline.

He has had the haunting theme tune to 'The Good, the Bad and the Ugly' as the ringtone on his mobile phone for some years now.

Ennio Morricone's score for the classic 1960s Italian Spaghetti Western is just right for Formula One's stone faced “Little Big Man” and his endless quest for a few dollars more.

In the last decade that quest has taken Formula One to lucrative new markets in Abu Dhabi, Bahrain, China, India, South Korea and Singapore at the expense of older venues in Europe.

Ecclestone has dismissed human rights concerns about staging the race in Bahrain, talking of giving them a new five-year contract.

Known simply as Bernie, or just the 'Mr E' written on the car pass that allows his sleek Mercedes limousine access to the F1 paddock inner sanctum, the British billionaire is rarely out of the news.

The money has come rolling in, multiplied by amazing deals that have seen him sell Formula One several times over while retaining a tight grip on the top job.

PITLANE DICTATOR

Ecclestone married for a third time last year to Fabiana Flosi, a Brazilian more than 40 years his junior.

The Briton has a private jet and one of the finest collections of classic racing cars in the world at his Biggin Hill airfield in south London but, apart from throwing the sort of parties that impress even the A-list celebrities attracted to the Monaco Grand Prix, is not personally ostentatious.

He likes a game of backgammon with young and old friends, including world champion Vettel, and a quiet night in.

His two socialite daughters from his second marriage often feature in the gossip columns of British newspapers, drawing criticism for their lavish lifestyles in a time of austerity.

For Ecclestone himself, money, as he has explained to many an interviewer over the years, is merely his way of keeping the score.

Ecclestone has a reputation for being uncompromising and obsessively neat. The trucks in the paddock have to be lined up with mathematical precision and in showroom condition.

By his own admission he is a dictator - a man who does a deal on a handshake, has a fondness for the office shredder and an aversion to email and written contracts.

He surrounds himself with a small group of deeply loyal and well-remunerated employees, many of them dating back to the days when he owned the Brabham team in the 1970s and 80s, who know exactly what makes him tick.

“I don't think democracy is the way to run anything,” he once said. “Whether it's a company or anything, you need someone who is going to turn the lights on and off.”

-Reuters

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