CVC

Ecclestone faces another Fraud charge over 2005 sale of F1 to CVC

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thejudge13 reported in an article Oct 9th “Ecclestone to load F1 with a mountain of debt” that German bank, Bayern LB was suing Bernie Ecclestone for $400m and that Ecclestone and his partners appeared to be cashing in as quickly as possible. Today Bluewaters, an investment fund has filed a lawsuit in New York against CVC, Bernie Ecclestone and BayernLB Gerhard Grikowsky. The claim is that Ecclestone conspired to prevent them from buying the rights to F1 in 2005.

Bluewaters says it had put together a bid for F1 for $1bn ahead of the CVC purchase which was to be funded by Alpolo Capital Management and King Street Capital Management. The claim states that Bluewaters had negotiated with the now imprisoned Gribkowsky of the Bayern LB bank, they were prepared to offer more than any other bidder for the sport.

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Secret share placements: Why is F1 selling 9% to North American Pensioners?

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A chance discovery

I reported this yesterday, but from the number of visits there’d been many of you may not have seen the original short news bulletin. In the short time since I’ve further added some reflection and so this is too long for the daily news section.

Let’s remember that the only reason this story came to light was because I’ve been trawling Texas small and local media for F1 news prior to the circus arriving in town and became familiar with a number of publications.

“Formula One racing has received a $200m investment from the ‘Teachers Retirement System of Texas’. The largest public retirement system in the state invested the capital alongside Delta Topco Ltd., a holding company for Formula One Group”, the Austin American-Statesman reports.

The Austin Business Journal adds to this stating that according to analysts Formula One is valued at nearly $7 billion and the he investment by TRS represents 0.18 percent of its portfolio, which is valued at $113 billion.

So the teachers are hardly risking their retirement plans – more of a flutter. 4 days earlier, the ‘Canada Pension Plan’ announced it was investing $400 million in Formula One. That’s 9% of F1 owned by the Pensioner’s of North America. 

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Hulkenberg refuses contract extension, Webber walks out of FIA conference, Sutil to return to Force India, Ecclestone refutes he’s being replaced,

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Indian GP attendance down 1/3rd: The drivers gave a thumbs-up to the 5.14 kilometre track enjoying the challenge of the layout and the teams and media hailed the clean paddock and the facilities sported a completed look that was not the case last year. However, no one could avoid the dip in the numbers of fans, the most important constituent of any sport, as 65,000 of them turned up for Sunday’s race down from last year’s 95,000.

Mr. E is of course not worried, “First races are always high and the second year goes down. If the third year isn’t going up, then it’s something to worry about”, he jocularly observed “We have a [another] competitor here. What’s the name of that game? Cricket?”, suggesting F1 has a way to go to make an impression on the Indian sporting psyche.

Indian motor sports federation chief Vicky Chandhok reiterated the same three-year cycle and predicted a bigger turnout in 2013. “Formula One is like this only. This is the trend everywhere. From third race onwards, you’d see some kind of stability. Overall, it has been a huge improvement from last year”.

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Ecclestone intervenes in Ferrari naval flag row, CVC appoint headhunters to find Ecclestone’s replacement, Mallya relieved at Forbes downgrade, German GP 2013 close to agreement

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Ferrari won’t be drawn into their own controversy: Dominicali was asked at the team press conference about the political storm Ferrari have created by stating they will run the Italian military naval flag on their cars this weekend, he responded “”If you look behind in the past we have done a lot of initiatives, but there is nothing I want to get into specifically because this is not the place we should do it”. He was then asked whether the team would review their position he retorted, “”Honestly I don’t think it is a matter of this press conference to discuss this subject. If you have any questions, we have a press office.” Dominicali added, “”There is not any political intents or discussion – that is what is written.”

Indian news agencies quoted Syed Akbaruddin, an official spokesperson in the ministry of external affairs, as saying: “Using sporting events to promote cause which are not of a sporting nature is not in keeping with the spirit of sports.”

14:16 GMT The padrino has now entered the fray. We have a statement from Ferrari company president Luca di Montezemolo reported by news agency ANSA saying, “We only want to make a small contribution, with great respect for the Indian authorities, so that a solution might be found through dialogue.”

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Ecclestone to load a mountain of debt on F1.

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It’s not possible to in a single article convey the mess that is F1 and its financial arrangements, and I’m not feeling inclined to write a book. Yet there are severe storm clouds on the horizon for F1 and it appears the governing body and the teams are oblivious to this.

The Korean Times reports the organisers’ of the F1 race are facing again huge losses. It is claimed they have avoided the contractual 10% escalation in fee from last year but still have a total budget of $67.5m to find.

The national government picks up about $5m and the rest is shouldered by the South Jeolla provincial government. Of course there is the ticket receipts, but the event has not been a raging success with mass crowds attending. The losses the provincial government has had to fund are 2010 $65m and in 2011 $54m. With a contract to 2016, local commentators are not sure they will be able to fulfill this commitment.

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Montreal promoters go bust, Schumacher gives Mercedes 5 mins warning, Perez must stop fibbing, Kingfisher employee family suicide

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It’s race weekend, and for those of you who have only joined us since Singapore, thejudge13, is often a little quieter over race weekends – as the focus of the F1 world is on reporting breaking news – who said what to who – who was fastest in which session, so Friday (or is it now Saturday in Japan) before a race is a good time to try to tie up any loose ends that are worthy of note, but not a full article.

A bit of housekeeping first.

Please, please leave comments to the articles, even if you think I’m talking rubbish – tell me. I’ve only had to moderate 1 comment so far for use of the f-word – it still got published but with “[mod]” replacing the offending  euphemism.

Also, if you enjoy thejudge13 follow us. This will help us further down the line get live F1 twitter/site guests to come and debate with us and answer our questions. You can follow on twitter and/or email. The buttons on the  vertical bar to the right of the screen. If you click for email, you will ONLY receive email when a new article is first published. Retweets and favourites are very good for getting us ranked higher in the busy twitter #F1.

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Lewis keeps Mercedes in F1

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Now the dust is settling following the Hamilton announcement, there are a number of threads to tidy up, but we’ll start with some housekeeping.

Firstly, forgive me for some of the Tabloid headlines which are presently being used and are designed to attract attention, but we are a new blog and it is a good way of grabbing readers who have not heard of us. I will get to the headline of this article shortly.

Also, there has been a certain amount of cynicism over whether we do in fact have access to ‘inside’ information at times, but this is not actually that important except from the fact it is helpful when trying to work out what will be the next talking point.

More fundamental to the articles being written is that we’re trying to address the issues and the questions the headline writers and mainstream F1 travelling media circus miss by chasing the breaking news.

This will hopefully mean that we will call things before the headline writers do. Feathers in the cap so far, Jake Humphrey leaving the BBC a week before it was announced. Further, today a number of high profile media commentators who travel with the F1 circus have now begun looking at why Lewis has actually left McLaren.

One example is Martin Brundle who said on the F1 show on Sky TV that if McLaren had really wanted to keep Lewis they could have done quite a lot more. Without using the word “pushed” he acknowledged McLaren had been feeling the need to move on from Lewis as much as Lewis did from McLaren. Others you will have seen have been saying similar things in reflection a day after the big announcement.

So that’s 2 strong predictions in the first 2 weeks of the blog – not too bad – but a weekly statistic that will be impossible to live up to I suspect.

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German Indictments imminent for Ecclestone

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Today Suddeutsche.de reports the following.

The German Bank – Bayern LB – that once held the commercial rights to F1 and paid Bernie Ecclestone 41million Euro’s in commission to find a buyer – is looking to recover its money.

We now know this money actually just circulated on to Gerhard Gribkowsky, a board member of Bayern LB, who was apparently tasked by Ecclestone to ensure the bank sell to Mr. Ecclestone’s client – CVC. On conclusion of this deal Gibkowsky received an alleged $44m from for his troubles from Mr. Ecclestone but he is now serving nearly 9 years in a German jail for his part in the collusion. His conviction is for participating in bribery.

Bayern LB have applied to see the records of the Munich prosecutors who won the Gibkowsky conviction saying, “We are preparing everything to make possible damage claims.” The prosecutors are apparently more than inclined to offer these files up, however, it appears lawyers for Mr. Ecclestone have sought an injunction with the Munich District Court to prevent this.

This may not be the only troubles on the horizon for Mr. Ecclestone, as representatives of Ruth Kirch, widow of the late media tycoon Leo Kirch, also wish to lodge a half a billion dollar lawsuit against Mr. Ecclestone. Kirch used to be the main shareholder of the F1 commercial rights before entering into loan arrangements with Bayern LB offering the rights as collateral.

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