Disclaimer: I´m a non-native speaker, so please excuse translation and other errors
The upcoming trial of the Office of the District Attorney Munich vs. Bernard Charles E.
Wait, what?
The public prosecutors office has decided, after a lengthy contemplation phase, to bring charges against Bernie Ecclestone (I´ll shorten to BE in the following) for severe bribery, wrongful personal gain and connected wrongdoings.
The case number is: W 5 KLs 405 Js 161741/11
Seriously?
The DA thinks they do have a solid case, and are not especially interested in yellow press. The expected media circus is
severely restricted.
When and where is this going down?
- The court will convene in:
Strafjustizzentrum
Nymphenburger Str 16
80097 Munich
either in conference hall A101 or B177
- always at 09.30h
- on:
Th., 24.04.14, A 101
Fr., 02.05.14, A 101
Fr., 09.05.14, A 101
Tu., 13.05.14, A 101
We., 14.05.14, A 101
Tu., 20.05.14, B 177
We., 21.05.14, B 177
Tu., 27.05.14, B 177
We., 28.05.14, B 177
Tu., 03.06.14, B 177
We., 04.06.14, B 177
Tu., 24.06.14, B 177
We., 25.06.14, B 177
Tu., 01.07.14, B 177
We., 02.07.14, B 177
Tu., 08.07.14, B 177
We., 09.07.14, B 177
Tu., 15.07.14, B 177
We., 16.07.14, B 177
Tu., 29.07.14, B 177
We., 30.07.14, B 177
Tu., 05.08.14, B 177
We., 06.08.14, B 177
Th., 14.08.14, B 177
Mo., 15.09.14, B 177
Tu., 16.09.14, B 177
If necessary, then continued on Tuesdays and Wednesdays.
But what is this all about?
In 2005 the London-based investment company CVC Capital Partners Limited founded a new company named Alpha Prema.
In Alpha Prema, BE shared a seat at the board of directors with Dr Gerhard Gribkowsky (Germany), who was at this time at the board of directors of the
BayernLB, responsible for risk management at BayernLB.
The investors behind CVC had set their sights in acquiring Formula 1 shares, especially the 25% controlled by BE via his Bambino Holding, and the 50% controlled by BayernLB. (The other 25% were jointly controlled by JP Morgan and Lehman Brothers).
But CVC weren´t the only ones interested in those shares, at this time estimated at 1 billion Euro. The same year BE purportedly turned down an offer of 1.2 billion Euro by Asian group
Hutchinson Whampoa (HWL).
Had HWL bought them, BE would have been out of the picture. But CVC founded Alpha Prema to control those 75%, and made BE the CEO of Alpha Prema. But only if BE could get it done to get Dr Gerhard Gribkowsky, and thus the BayernLB 50%, onboard.
Gribkowsky not only did this, but brought those 50% shares at a steep discount price (without any kind of public call for bids). In exchange he got onto the board of directors with Alpha Prema, and a bribe of 32 Mio € from BE, which he didn´t declare for taxes.
Fun fact: while BE is estimated to be worth around 2.8 billion Euro, the bribe for Gribkowsky did neither come from his pockets or from CVC, but from the German taxpayers who own the BayernLB. BE had the BayernLB pay him an intermediation fee for setting up the deal over the 50%, which he then used as the bribe for Gribkowsky.
But how do we know all this?
Soon after the deal was done, people noticed how cheap the BayernLB had given away the shares. The Munich Office of the District Attorney got involved and investigated for two years before bringing official charges, first against Gribkowsky alone.
In exchange for a shorter term, Gribkowsky confessed in full on 20th June 2012. He got sentenced to eight and a half years of prison.
In his confession he detailed all the goings-on, and basically threw BE under the bus (hey, he had to pay the bribe back!).
So on 24th February 2014, after a lengthy contemplation, it was decided to press charges against BE.
And what has Bernie to say about all this?
He said, that he doesn´t fear that he would have to go to jail. But he thinks he´s the victim here, with people talking badly about him without fully understanding what this is really about. "The whole thing is just such a small episode of my life". He´s mad, that the proceedings are "stealing so much of my time".
Yeah OK, but what does this all mean?
The fallout of this could be huge. If BE would be sentenced (the worst he´d be facing would be ten years in jail), no matter to what degree, he would need to step away from Formula 1.
If he wouldn´t, several companies (especially Mercedes) would be forced to leave the sport, due to their compliance rules.
So we´d be looking at a scenario where either we´re getting a successor for Bernie (Horner, anyone?); or the sport would be gutted due to several companies leaving.