Bernie Ecclestone’s future as formula-one grand prix supremo was cast into doubt on Monday when London’s High Court dealt a blow to his boardroom power base.
But the court’s ruling may have helped prevent a breakaway movement launched by formula-one teams Ferrari, Renault, Mercedes and BMW (known as the GPWC group) from carrying out its threat to create a rival series to formula one.
The emergence of the GPWC group has been the biggest threat to 73-year-old Briton Ecclestone’s control of a sport he has dominated for more than 20 years.
Monday’s case revolved around the composition of the board of grand prix parent company Formula One Holdings (FOH).
Three banks — Bayerische Landesbank, JP Morgan and Lehman Brothers, under the collective title Speed Investments — own 75% of FOH.
Despite their majority stake, they were in a minority position on the board with Ecclestone’s family trust company Bambino Holdings — which only has a 25% stake in FOH — having a dominant position.
Speed took Bambino to court over its decision two years ago to appoint Swiss-based Luc Argand (Ecclestone’s Geneva lawyer) and Emmanuele Argand-Rey (Argand’s wife) to the FOH board.
It argued that Bambino had exceeded its powers under FOH company rules to make the pair members of the eight-member board.
The judge ruled in Speed’s favour on Monday, saying Bambino had ”no real prospect” of defending Speed’s claim.
But his ruling may not be the end of the matter if, as expected, Ecclestone appeals.
In the meantime, Speed is set to begin talks with the GPWC group in a bid to head off a split.
Ecclestone is widely credited with playing a major role in the transformation of formula one from a sport for motor-racing enthusiasts into a multibillion-dollar industry and in the process becoming worth millions himself.
A former car dealer and grand-prix competitor, Ecclestone hit the headlines earlier this year when he announced plans to scrap the British Grand Prix, one of the sport’s oldest events, because of his unhappiness with the facilities at Silverstone, the central United Kingdom venue that stages the race.
However, he relented and is now involved in talks with Silverstone’s owners, the British Racing Drivers’ Club, over the race’s future. — Sapa-AFP