F1 Owners Told to Release ‘hundreds of documents’ Relating to Sale of Sport
August 6, 2013
Formula One Group and owners CVC have been ordered to release ‘hundreds of documents’ that relate to the sale of the sport.
The news comes after German media group Constantin Medien claimed they were owed damages of approximately $171m relating to the sale seven years ago.
A report in the Financial Times says that the firm claim the 47% stake held by BayernLB was undervalued when sold in 2006 to CVC.
The FT report said: “At a disclosure hearing in London last month, Mr Justice Vos told lawyers for FOG and CVC their clients must release a number of documents to Constantin Medien. Lawyers for all parties received transcripts of the proceedings last week and are awaiting the judge’s final written judgment about what has to be disclosed.”
“The stake was sold for $820m when CVC completed the purchase of F1 in April 2006. But CVC’s refinancing of F1 a year later implied a valuation of the stake of $2.8bn,” The FT added.
“In the disclosure hearing before Mr Justice Vos, Peters and Peters, Constantin Medien’s lawyers, argued there was no proper valuation and marketing of the BayernLB stake before the sale.
“The lawyers claimed the undervaluation was the result of the $44m payment made by Mr Ecclestone and Bambino, the Ecclestone family trust, to Gerhard Gribkowsky, the ex-BayernLB banker jailed last year for eight and a half years on corruption charges.”
The court case will take place on October 28 and could last for six weeks.
F1 chief executive Bernie Ecclestone will be called as a witness.