CVC Capital Partners, the owners of Formula One, have been ordered to release hundreds of documents as a German media group pursues them in court for damages of $171 million.
Constantin Medien claim a stake held in F1 by the BayernLB bank was undervalued when CVC purchased F1 in 2006. The case will begin in October.
The Financial Times reported CVC will have to hand over due diligence reports on F1, items from a letter Bernie Ecclestone sent to CVC about F1’s income, CVC application for a loan, minutes of meetings, financial modeling and tax information.
Among those expected to be called as witnesses are Ecclestone, F1’s chief financial officer Duncan Llowarch and CVC co-chairman Duncan MacKenzie. Ecclestone’s lawyers say the stake was sold for a fair price.
The case comes at a sensitive time for F1’s owners as Ecclestone faces charges of bribing German banker Gerhard Gribkowsky during the sale of F1 to CVC.
The timing of the Constantin Medien case is set to coincide with CVC and Ecclestone’s plan to float F1 on the Singapore stock exchange later this year and could jeopardize their plans. A previous attempt to float F1 last year was postponed due to volatility in world markets.
MILAN (AP) Formula One boss Bernie Ecclestone is confident the Italian Grand Prix in Monza can find the needed cash to stay on the calendar.
Ecclestone tells the Gazzetta dello Sport, “We will find the right solution – I no longer have doubts – to provide a future for the Italian GP.”
No circuit has hosted more F1 racing than Monza, but officials at the track outside Milan have had trouble producing the estimated 25 million euros ($26.6 million) per year that Ecclestone seeks to keep the race in place after the current contract expires next year.
Ecclstone says, “Things have been cleared up and there is only one go between, (Angelo) Sticchi Damiani, the president of the Italian Automobile Club.”
The Italian GP next year is scheduled for Sept. 4.
Plans to introduce a new alternative, cheaper engine into Formula 1 for 2017 – hypothetically a 2.2-liter V6 similar to what is seen in IndyCar – will at least temporarily go on the backburner.
The F1 Commission has rejected the so called “alternative engine solution,” where several companies submitted proposals to be that alternative supplier.
“The F1 Commission voted not to pursue this option at this stage — however, it may be reassessed after the Power Unit manufacturers have presented their proposal to the Strategy Group,” the FIA said on Wednesday.
“The parties involved have agreed on a course to address several key areas relating to Power Unit supply in Formula One,” the statement added.
Meanwhile the statement outlined four things the current manufacturers – Mercedes, Ferrari, Renault and Honda – would be tasked with improving on the current 1.6-liter formula:
- a guarantee of supply to teams
- the need to reduce the engines’ cost
- simplification of the specification
- “improved noise”
Further meetings between the manufacturers and the governing body are scheduled, including one this weekend at the Abu Dhabi Grand Prix season finale.
As F1 heads into the final weekend of the season, political/paddock items such as Red Bull and Toro Rosso’s respective power unit futures, whether Renault’s takeover of Lotus will finally become official and what will happen with Manor’s team leadership stake – this marks Graeme Lowdon and John Booth’s final weekends although ex-McLaren man Dave Ryan has been hired as the team’s new racing director – are among the talking points.
You couldn’t make this stuff up.
Dominant GP2 Series champion Stoffel Vandoorne had his first go in a Super Formula car at Suzuka on Wednesday, but the engine woes that have hampered his Formula 1 team’s efforts (McLaren) all season appear to be equal opportunity woes.
Vandoorne only completed a limited day of running due to technical issues; naturally, and in an unfortunate coincidence, the Super Formula cars also have Honda power.
The Belgian is now en route from Japan to Abu Dhabi, where this weekend’s final round of the GP2 season will be held alongside the Abu Dhabi Grand Prix.
Wandsworth Council’s Community Services Overview and Scrutiny Committee voted seven to four late Tuesday night, in favor of retaining the FIA Formula E event in Battersea Park.
This will see the London ePrix – the season finale for the electric open-wheel championship – continue at the site for at least the next two seasons.
The 2016 race will run July 2-3, to avoid a direct head-to-head clash with the British Grand Prix a week later in Silverstone.
Battersea Park’s race faced local opposition in recent weeks, which put the race under threat.