The control and face of Formula 1 may see a drastic change on the not too distant horizon. Bernie Ecclestone has lost an appeal in court in which he is battling the banks which control the other 75% of the commercial rights to motor racing's elite series and events.
According to The Independent, "An appeal court judge in London yesterday dismissed an appeal on behalf of Ecclestone's Formula One Holdings Ltd and Bambino Holdings Ltd for a dispute with the banks to be heard under Swiss law rather than British. Leave to appeal was refused, and the main case is now scheduled to be heard in London later this month. Lord Justice Carnwath upheld a decision that the case should be heard in Britain and stated that the alternative, to wait for a ruling in a Geneva court, would serve "No purpose but to increase delay and expense". Although the judgment concerned the narrow issue of jurisdiction, the underlying dispute has major implications for the sport. "The overall dispute concerns the control and future of Formula One racing," the judge declared.
A victory by the banks would severely weaken Ecclestone's grip on Formula 1. The manufacturers which have decided unamimously to create a rival Grand Prix series in 2008, are watching this court case like a hawk.
Also according The Independent, "The banks - Bayerische Landesbank, JP Morgan and Lehman Brothers - control 75 percent of the SLEC holding company that owns the commercial rights to Formula One. The other 25 per cent is owned by Bambino Holdings, an Ecclestone family trust.
SLEC also owns FOH, but the banks are contesting the appointment of that company's directors, arguing that although they own the majority of the shares they do not have control because of the board's composition. The banks acquired their stake in Formula One after Germany's Kirch media empire collapsed, owing them $1.6bn (£864m)."
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