Full Throttle

According to Update F1, who quotes The Business Online, F1’s sale to British firm CVC could “be in trouble.”

It is alleged that the sale of Bernie Ecclestone and Bayerische Landesbank’s shares, totalling 75 per cent, could be deemed illegal because the other shareholders - two American banks - ‘were kept in the dark’.

JP Morgan and Lehman Brothers, with the final 25 per cent, should have been given ‘first right of refusal’ over Bayerische’s stake, ‘The Business Online’ wrote.

It is reported that the two remaining banks may not want to also sell to British company CVC because - without Bayerische’s 50 per cent share - of the likely low price.

‘TBO’ reported that JP Morgan and Lehman Brothers could still veto the sale to CVC and thus own formula one outright.

My confusion has its genesis in a report I cited in October by the This is Money website out of the UK. In a piece titled “Germans in F1 driving seat” the claim was made that “Germany’s Bayern Bank has bought out the stakes of JPMorgan and Lehman Brothers in Formula One holding company SLEC,” and Bayern along with Bernie Ecclestone’s Bambino holding company were sole owners.

So what are we to believe, other than F1 being in its normal state of disarray? Which story is correct? Who owns what and when? Who knew what and when did they know it?

If JP Morgan and Lehman Brothers were bought out in October what legal basis do they have now to hold up the sale to CVC? The implication seems to be the sale to CVC was already in the pipeline when JP Morgan and Lehman Brothers sold out as evidenced by the “in the dark” quote.

Or maybe they never sold out, who the hell knows except the bean counters at each firm and possibly one of the hundred or so maids Bernie employs at “Ecclestone Castle.” The only constant in Formula One is the need for its fans to keep a ready supply of headache powder on hand.

Formula One, Auto Racing, Sports