Ecclestone Denies Wrongdoing in Stake Sale as Court Proceedings Begin

Formula 1 supremo Bernie Ecclestone has vehemently denied accusations he was involved in a “conspiracy” over the controversial sale of a stake in the Formula One Group during an appearance at the High Court on Wednesday.

Ecclestone is accused of entering into a “corrupt agreement” with German banker Gerhard Gribkowsky to facilitate the sale of the stake to a buyer of his preference.

Media company Constantin Medien is suing Ecclestone for $140m after claiming the 47 per cent stake in F1’s commercial rights was undervalued when it was sold by German bank BayernLB (BLB) to private equity firm CVC Capital Partners in 2006.

The German media firm had an agreement in place to receive 10 per cent if the stake was sold for more than $1.1bn but did not get anything as CVC paid $814m.

Ecclestone scored an early legal victory after the original claim from Constantin Medien was reduced from $171m to $140m after an expert report on the stake’s valuation.

Ecclestone said the legal action lacked merit and denied any “conspiracy”.

He told a judge he made payments to Gribkowsky because the banker insinuated he would report him for alleged tax evasion.

“It is true,” said Ecclestone. “That’s what I have always said.”

Gribkowsky, formerly chief risk officer for BayernLB, was himself convicted last year of tax evasion and also receiving a $44m bribe. He was jailed for eight-and-a-half years.

Ecclestone and his fellow defendants have claimed innocence. The trial in London is expected to last several weeks.

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