A sports-focused media group, Constantin Medien had an interest in the sale of
German bank BayernLB’s stake in the motor sport to CVC, and Constantin says
it lost out as a result of the undervaluation.
The legal fall-out from the sale has already seen former BayernLB banker
Gerhard Gribkowsky jailed for 8-and-a-half years for corruption, and a
German court is due to decide next year whether Ecclestone himself should
stand trial on bribery charges.
Philip Marshall, for Constantin Medien, told the court that “a corrupt
bargain was made between Mr Gribkowsky… and Mr Ecclestone”.
The purpose of the bargain, Marshall said, was “to facilitate a sale of
the Formula 1 Group to a purchaser chosen by Mr Ecclestone in return for
remuneration (for Gribkowsky) and a position in Formula 1 going forward (for
Ecclestone)”.
The other three defendants are Mr Ecclestone’s former lawyer Stephen Mullins,
the Ecclestone family’s Bambino Holdings and Gribkowsky, who is mounting no
formal legal defence in the case.
Mr Marshall said that Mr Ecclestone arranged with Gribkowsky for BayernLB to
sell its 47pc in Formula 1 to CVC at a “knock-down” price of $830m
because he stood to gain both financially and by keeping his position at the
helm of the sport.
“These arrangements effectively dealt with a serious threat from BayernLB
to Mr Ecclestone’s control of the Formula 1 Group,” he said.
Mr Ecclestone does not deny making payments of $44m to Gribkowsky but says he
was the victim of extortion after the German banker threatened to make false
claims over his tax affairs.
Mr Marshall claimed that the combined benefit to Mr Ecclestone and Bambino
Holdings of the sale was over $1bn.
He said that, based on what the Ecclestone family got out of the transaction,
the total valuation of Formula 1 should have stood at between $3.09 and
$3.34 billion, in stark contrast to a valuation just in excess of $2 billion
used by CVC at the time.
“We see the transaction as being significantly weighted for the benefit
of Mr Ecclestone and Bambino, and significantly to the detriment of BayernLB
and those who had an interest (in the sale of its stake),” he told the
court.
Mr Ecclestone, who was not in court, is expected to dispute the allegations
against him. The 83-year-old is scheduled to appear as a witness in the
London High Court next week.
The trial is scheduled to last six weeks.
From agencies: edited by Tim Woodward