MARCH 25, 2005

Who runs Formula One?

Reports are beginning to emerge in Germany which indicate that the deal between Bernie Ecclestone and the Formula 1 banks is a deal that is heavily in favour of the banks. SLEC's chairman Gerhard Gribkowsky is widely quoted as saying that the banks now influence relative to their shareholding throughout the entire F1 empire. The reports are being carried by credible media organizations such as Dow Jones, Reuters Germany and the influential Frankfurter Allgemeine Zeitung. If these stories turn out to be true all further legal actions, including the writs against Ecclestone for damages will disappear and Bambino, the Ecclestone Family trust will be relegated to being just a minor shareholder in the business. It is not clear whether this will affect Bernie Ecclestone's status as chief executive but it is logical to assume that he will remain in the role and operate on behalf of the banks.