Jun 24 2012

Formula One: Valencia

So we’ve been following the Gerhard Gribkowsky case since August 2011.

As you may recall it’s alledged that Bernie Ecclestone paid Gerhard a bribe of $44 Million so that the sale of the Kirsh Group’s interest in Formula One was not only below market value, but also so they would not participate in any profit sharing.  Bernie’s counter-contention was that it was merely an extortion payment to hide the fact that he and his wife were evading $3.2 BILLION in taxes on the family trust fund.

Well, Wednesday Gribkowsky admitted accepting the bribe in Court-

Ex-BayernLB Banker Admits Taking Bribe on Formula 1 Sale

By Karin Matussek, Business Week

June 20, 2012

Gribkowsky told the Munich Regional Court today the indictment against him was “in most parts” correct. He made his declaration after closed chamber negotiations between the court, prosecutors, and his defense lawyers. In exchange for his confession, the judges informally agreed Gribkowsky would get a prison term of 7 years and 10 months to 9 years, Presiding Judge Peter Noll said at the hearing.

Prosecutors last year charged Gribkowsky, who managed Munich-based BayernLB’s interest in Formula One, with accepting bribes, breach of trust and tax evasion. They claim he received $44 million in bribes to steer the sale of the bank’s 47 percent stake in the racing circuit to CVC, a U.K.-based buyout firm, and also agreed to a sham contract under which Ecclestone received a kickback. Until today, Gribkowsky denied the claims.

“It took me a long time to come to terms with what I have done and to admit even to myself: Yes, it was bribery and yes, I should have paid tax,” Gribkowsky said in his first comments to the court since the trial began in October. “Still today I have troubles accepting this as a reality.”

…

Ecclestone, who is being investigated by Munich prosecutors over the issue, has said he was caught up in a sophisticated shakedown and bribed Gribkowsky because he feared the banker might tell U.K. tax authorities about a family trust controlled by his then wife.

…

BayernLB’s 47 percent share was sold for 840 million euros ($1.07 billion). Ecclestone asked for a kickback of $100 million from BayernLB for his role in setting up the sale, Gribkowsky told the judges. Gribkowsky reduced the amount to $66 million in negotiations and said he agreed to it knowing he had the power to reject Ecclestone’s demand completely.

…

Because Ecclestone didn’t want cover the cost of the bribes, Gribkowsky set up another scam to funnel money from BayernLB to the Formula One executive, according to the indictment. The bank manager signed a sham contract under which BayernLB had to pay Ecclestone a kickback of $41.4 million and another $25 million to his then wife’s trust, prosecutors claim.

Banker Admits Formula One Bribe

By LAURA STEVENS and DAVID CRAWFORD, The Wall Street Journal

June 20, 2012, 5:15 p.m. ET

Mr. Gribkowsky was arrested early last year after Munich prosecutors launched a probe into allegations that he accepted bribes from Mr. Ecclestone to divest BayernLB’s stake in Formula One for far below the actual value.

…

BayernLB, Lehman Brothers Holdings Inc. and J.P. Morgan Chase & Co. secured a combined 75% equity stake in Formula One in 2002, part of a debt settlement plan from the bankruptcy of German media company Kirch Group.

F1 : Ecclestone in crisis as Gerhard Gribkowsky Formula 1 bribery affair develops

F1SA

Friday, 22 June 2012 09:41

The reinvigorated Formula One bribery affair has raised questions not only about the viability of the sport’s planned floatation, but about whether Bernie Ecclestone will lose his job or even face jail in Germany.

“Will Ecclestone go to Hockenheim?” the Die Welt newspaper, obviously musing a potential arrest now that former Formula 1 banker Gerhard Gribkowsky has confirmed the Formula 1 Chief Executive’s payments to him were indeed bribes, wondered.

…

German lawyer Sewarion Kirkitadze told Bild that Ecclestone ultimately face a prison sentence of “up to ten years”.

“He should also expect the prosecutor to prepare an international arrest warrant and an extradition request.”

Formula 1: Bernie Ecclestone Seeks Nothing Wrong in Paying Banker £28M

Auto Racing Daily

Jun 23, 2012

Bernie Ecclestone said that he had been “a bit stupid” to pay a German banker $44million (£28million) following the sale of Formula One to present owners CVC Capital Partners six years ago but insisted once again that he had done nothing wrong.

…

“I have always said that we gave him money but it was not for what he said,” said the 81 year-old, who appeared as a witness at the trial in November. “He was shaking me down a bit and saying I had control of a family trust which was not true. He was doing the best he could. I was a little bit stupid – normally I would have told him to get lost.” Telegraph.co.uk

Ecclestone, 81, told Reuters that Gribkowsky had been putting him under pressure over his tax affairs. He paid some 10 million pounds ($16 million) to the banker to “keep him quiet” and not as alleged to smooth the sale of the Formula One stake to private equity firm CVC Capital Partners.

Ecclestone puts brave face on Gribkowsky’s £28m bribe confession

David Tremayne, The Independent

Saturday 23 June 2012

As investment banker Gerhard Gribkowsky awaits sentence in Germany after confessing to taking a $44m (£28m) bribe, allegedly from Bernie Ecclestone, there has been inevitable speculation whether Ecclestone can escape being dragged further into the sport’s latest cause célèbre. It has already led to a delay in the proposed flotation of F1 in Singapore even though the $10bn (£6.4bn) valuation sought by rights holder CVC Capital Partners had been achieved by a recent sale of shareholdings to American investors.

Theoretically if somebody is found guilty of receiving a bribe then the person making the bribe can also be charged but, for Ecclestone, Valencia has been business as usual and he does not appear to have a care in the world. He blamed Gribkowsky for “shaking him down” while testifying at the Bavarian banker’s preliminary hearing, and his attorney Sven Thomas issued a statement after Gribkowsky’s confession claiming that it would have no impact on the prosecutors’ investigation into Ecclestone’s dealings.

Formula One chief Bernie Ecclestone faces fresh allegations over £28 million ‘bribe’

By Tom Cary, F1 Correspondent, The Telegraph

10:31PM BST 20 Jun 2012

If Munich’s state prosecutors decide to go after Ecclestone, sources have indicated they might try to agree a financial settlement rather than go through a lengthy and costly trial with a billionaire in his eighties.

Should they press charges, it remains unclear what action, if any, CVC will decide to take. Ecclestone told The Daily Telegraph earlier this year that the private equity firm “could get rid of me tomorrow if it wanted to”.

These are extremely delicate times in the sport. CVC has sold more than £1.3billion worth of shares over the past few months ahead of a mooted flotation on the Singapore stock exchange later this year, although it says it intends to remain F1’s controlling shareholder. CVC declined to comment on Wednesday night.

I’ll be extremely surprised if any of this is mentioned today.

Speaking of surprises, in racing related news the headline is ‘Scuderia Marlboro UPC fails to advance to Q3’.  Timo Glock is too sick to race so only 23 cars will start.

Tire choices are Mediums and Softs.  Hardly any Softs escaped unused among the contenders in Qualifying so some of the big names in the back might attempt an early charge and extend strategy.  It will be Soft, Medium, Medium and after Canada I’d hardly expect any team to deviate.  It’s a fuel and brake hog so there could be some failures.

One newsworthy exchange that did air during Practice or Qualifying, I misremember, is that the stands are pretty empty this year.  The commentator observed that it’s hard to justify $400 for a ticket with 24% unemployment.  What did not get said is that there is discussion about dropping Valencia next year.

live stream?

Pretty tables below.

Starting Grid

Grid Driver Team Q-Time Q-Laps
1 Sebastian Vettel Red Bull Racing-Renault 01:38.086 15
2 Lewis Hamilton McLaren-Mercedes 01:38.410 17
3 Pastor Maldonado Williams-Renault 01:38.475 21
4 Romain Grosjean Lotus-Renault 01:38.505 16
5 Kimi Raikkonen Lotus-Renault 01:38.513 16
6 Nico Rosberg Mercedes 01:38.623 17
7 Kamui Kobayashi Sauber-Ferrari 01:38.741 12
8 Nico Hulkenberg Force India-Mercedes 01:38.752 19
9 Jenson Button McLaren-Mercedes 01:38.801 16
10 Paul di Resta Force India-Mercedes 01:38.992 18
11 Fernando Alonso Ferrari 01:38.707 14
12 Michael Schumacher Mercedes 01:38.770 12
13 Felipe Massa Ferrari 01:38.780 14
14 Bruno Senna Williams-Renault 01:39.207 15
15 Sergio Perez Sauber-Ferrari 01:39.358 14
16 Heikki Kovalainen Caterham-Renault 01:40.295 11
17 Daniel Ricciardo STR-Ferrari 01:40.358 12
18 Jean-Eric Vergne STR-Ferrari 01:40.203 9
19 Mark Webber Red Bull Racing-Renault 01:40.395 7
20 Vitaly Petrov Caterham-Renault 01:40.457 8
21 Pedro de la Rosa HRT-Cosworth 01:42.171 7
22 Narain Karthikeyan HRT-Cosworth 01:42.527 8
23 Charles Pic Marussia-Cosworth 01:42.675 10
DNS Timo Glock Marussia-Cosworth – 0

Driver Standings

Rank Driver Team Points
1 Lewis Hamilton McLaren-Mercedes 88
2 Fernando Alonso Ferrari 86
3 Sebastian Vettel Red Bull Racing-Renault 85
4 Mark Webber Red Bull Racing-Renault 79
5 Nico Rosberg Mercedes 67
6 Kimi Raikkonen Lotus-Renault 55
7 Romain Grosjean Lotus-Renault 53
8 Jenson Button McLaren-Mercedes 45
9 Sergio Perez Sauber-Ferrari 37
10 Pastor Maldonado Williams-Renault 29
11 Kamui Kobayashi Sauber-Ferrari 21
12 Paul di Resta Force India-Mercedes 21
13 Bruno Senna Williams-Renault 15
14 Felipe Massa Ferrari 11
15 Nico Hulkenberg Force India-Mercedes 7
16 Jean-Eric Vergne STR-Ferrari 4
17 Daniel Ricciardo STR-Ferrari 2
18 Michael Schumacher Mercedes 2

Constructor Standings

Rank Team Points
1 Red Bull 650
2 McLaren 497
3 Ferrari 375
4 Mercedes 165
5 Renault 73
6 Force India 69
7 Sauber 44
8 Toro Rosso 41
9 Williams 5

rustymancuso581

59 comments

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  5. 5 degrees.  85 air temp.

  10. Vettel

    Hamilton

    Grosjean

    Kobayashi

    Maldonado

    Raikkonen

    Hulkenberg

    Alonso

    di Resta

  11. Vettel

    Hamilton

    Grojean

    Kobayashi

    Maldonado

    Raikkonen

    Hulkenberg

    Alonso

    di Resta

    Massa

  21. except for Vettel and Grosjean on fresh Softs!

  22. Vettel

    diResta

    Rosberg

    Grosjean

    Hamilton

    Schumacher

    Senna

    Webber

    Alonso

    Raikkonen

  24. Vettel

    Grosjean

    Hamilton

    di Resta

    Rosberg

    Alonso

    Senna

    Kobayashi

    Raikkonen

    Maldonado

  26. Senna flat.  Kobayashi damaged wing.

  30. Vettel

    Grosjean

    Hamilton

    Alonso

    Raikkonen

    Maldonado

    Massa

    Hulkenberg

    Button

    Ricciardo

  35. Front jack breaks.

  36. Vettel

    Grosjean

    Alonso

    Ricciardo

    Raikkonen

    Hamilton

    Rosberg

    Schumacher

    Webber

    Maldonado

  37. Alonso and Grosjean touch.

    Massa and Kobayashi touch.

  39. Replace nose.  Mismatched tires.  Bad pit.

  41. Alonso

    Grosjean

    Hamilton

    Raikkonen

    Ricciardo

    Schumacher

    Webber

    Maldonado

    Hulkenberg

    di Resta

  45. Alonso

    Grosjean

    Hamilton

    Raikkonen

    Schumacher

    Maldonado

    Hulkenberg

    di Resta

    Button

    Perez

  50. Alonso

    Hamilton

    Raikkonen

    Maldonado

    Hulkenberg

    di Resta

    Perez

    Button

    Rosberg

    Schumacher

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