Ecclestone’s Legal Trouble: A Deadly Curve for Formula One?

12 years ago - 8 November 2012, Wall Street Journal

Europe’s most glamorous sport—known for its dashing drivers, high-tech cars and exotic locales—is heading into a hairpin turn. Prosecutors in Munich are considering whether to charge Formula One Group Chief Executive Bernie Ecclestone for bribery in connection with $44 million he paid to a banker in 2006-07.

A decision, which has been hanging over the sport for months, is expected in the coming weeks.

An indictment of the 82-year-old, known in Formula One as “Supremo,” would likely force him out of the sport he has dominated for decades as an owner, manager and public face. More worrisome for Formula One, Mr. Ecclestone’s legal troubles threaten to upend the multibillion-dollar racing circuit’s ties to major sponsors, teams and fans.

Mr. Ecclestone said last week that he takes the allegations “very seriously” and is “absolutely” not guilty. He has acknowledged making the payment but said he only did so because he was blackmailed.

The recipient of the funds, German banker Gerhard Gribkowsky, said in court that the money was a bribe.

A former top executive at state lender BayernLB, Mr. Gribkowsky said he received the money as payment for arranging the sale of his bank’s stake in Formula One to a buyer chosen by Mr. Ecclestone.

Mr. Gribkowsky is serving an eight-year prison term in connection with the events, after admitting to bribery, embezzlement and tax evasion. His lawyer didn’t respond to requests for comment for this article.

Formula One racing, in which cars run through the streets of Monaco and other world-wide courses at speeds over 200 miles an hour, was born in Europe after World War II. The circuit is considered by many enthusiasts to represent the pinnacle of auto racing, both in terms of driving skill and engineering.