28/03/2005
NEWS STORY
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Eddie Jordan, who bailed out of Formula One in January this year, has spoken out following reports that the three banks which own 75% of Formula One now effectively control the sport.
The Irishman, who sold his Silverstone-based outfit to Russian entrepreneur Alex Shnaider believes that the best option would be for the banks to leave Ecclestone running the show.
"Formula One with Bernie Ecclestone is worth far more than without Bernie," he told the Daily Telegraph. "The banks may have the equity and the voting rights now, but the fact is that Bernie has the promoters, the teams and the sponsors on his side. The real control and value is with Bernie."
Following last week's news that the banks and Bernie had done a deal before the issue went to court in May, there was much speculation as to what sort of deal had been done.
Then, in a surprise move, one of the banks, Bayerische Landesbank, which own 46.8% of SLEC the single largest stakeholding, revealed that Ecclestone and Bambino had given in on every point of the lawsuit against Formula One Administration, with spokesman Gerhard Gribkowsky revealing that the banks had had "regained influence corresponding to its ownership".
The future is still unclear, and watchers are now waiting to see the banks' next move. Certainly they want a solid return on their 'investment, then again they know little of Formula One.
There is still speculation that Bernie might attempt to buy back the banks' 75%, while there is also the possibility of the banks selling a large proportion of their holding to the car manufacturers, which would at least 'kill off' any hope of a breakaway series. Then again if the car manufacturers go head with the breakaway series, this would only lessen the value of F1.
"A sale of a stake to the car-makers would be a first step to avoid the disaster of two championships," said Minardi boss Paul Stoddart. "The banks must realise they need Bernie to make an exit on their investment."
For his part, talking to German newspaper Allgemeine Zeitung, Ecclestone says: "As regards the banks, who hold 75 per cent of the holding company SLEC, I don't think they have any real interest in Formula One."
He also dismissed claims that he (previously) ran F1 through a highly complex web of companies, which made the workings of the business side of his empire virtually impossible to follow: "I don't agree with this accusation," he says. "I hand over all relevant information to my business partners in order to allow for the necessary transparency. However, such information is not meant for public consumption."
The car manufacturers behind the proposed breakaway series are adamant that one of its cornerstones will be total transparency in its business dealings.
A final option might be a flotation of SLEC, though surely this is how it all began in the first place.