Formula One boss Ecclestone goes on trial in Germany

Friday, 25 April 2014 04:00 -     - {{hitsCtrl.values.hits}}

REUTERS: Formula One Chief Executive Bernie Ecclestone goes on trial for bribery in Germany on Thursday in a case that could see the Briton’s long dominance of the motor sport ended by a jail sentence. Prosecutors in Munich have charged Ecclestone, 83, with bribing jailed German banker Gerhard Gribkowsky to smooth the sale eight years ago of a stake in Formula One to private equity firm CVC. Ecclestone, a former used car salesman who became a billionaire by building the sport into a global money spinner over the past four decades, denies wrongdoing and says he will fight to clear his name. He could face up to 10 years in jail if convicted. CVC remains the largest shareholder in Formula One, a business that generates annual revenues of over $ 1.5 billion from its series of grand prix races held around the world. CVC Co-Chairman Donald Mackenzie has said he would fire Ecclestone if he was found guilty of wrongdoing. Hearings will be held only once or twice a week to allow Ecclestone to carry on the day-to-day running of the motor sport. The case is scheduled to last at least until September. Despite his age, Ecclestone attends almost every grand prix and remains central to the sport’s commercial success. He has always dismissed talk of retirement and there is no obvious replacement when he does finally quit or is forced out. The uncertainty over Ecclestone’s future makes it hard to revisit stalled efforts to launch an initial public offering of Formula One after a planned listing in Singapore was abandoned because of turbulent markets two years ago. CVC paid around $ 830 million to buy a 47% stake in Formula One held by German bank BayernLB from 2002-06. Prosecutors allege that Ecclestone channelled $ 44 million to Gribkowsky, Chief Risk Officer at BayernLB, for having helped to ensure that CVC took control of the sport rather than any rival bidder. They argue that Ecclestone favoured CVC because it was committed to keeping him on as Chief Executive.