25/03/2005
NEWS STORY
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Although little is known in the UK of what exactly happened in the High Court on Wednesday and the 'deal' agreed between Bernie Ecclestone and the three banks, which own 75% of Formula One, this doesn't appear to be the case in Germany where the media has been given far more insight, courtesy of SLEC's chairman Gerhard Gribkowsky.
Speaking to the German media, Gribkowsky says that the banks now have an influence throughout the entire F1 empire which reflects their massive shareholding.
Furthermore, Bayerische Landesbank, one of the three banks, is claiming that Ecclestone and Bambino Holdings gave in on every point of the lawsuit against Formula One Administration.
According to Frankfurter Allgemeine Zeitung: With the latest agreement, Speed, as the majority owner of SLEC, has "regained influence corresponding to its ownership," said Bayern Landesbank board member Gerhard Gribkowsky. "Speed will constructively and responsibly avail itself of this influence on the operating levels in the interests of all parties."
Meanwhile Reuters in Germany reports that with Ecclestone giving in on all points the settlement marks the end of all legal action by the banks against him.
In other words, there won't be any further cases against Formula One Management or writs against Ecclestone for damages because the banks now have influence over SLEC reflective of their majority ownership. Meanwhile, the Ecclestone family's trust (Bambino) is now relegated to having influence over SLEC reflecting its minority share of 25%.
Although it is now clear that the banks have control, it is not known what Bernie Ecclestone's role will be, though and how this monumental shift in power will affect his position as 'ruler' of the sport. In the short term the banks are likely to leave him in charge, but no doubt under close scrutiny. But in the long term?