F1 Chief and Banks Settle Out of Court
Wed Mar 23, 5:56 PM
LONDON - Formula One chief Bernie Ecclestone and three banks have reached agreement over control of the world's premier open-wheel racing series.
Details of the settlement were not disclosed Wednesday, and it was not immediately clear what impact the agreement would have on the sport. Ecclestone is trying to fight off a rival breakaway series.
His attorneys and those representing the banks told High Court Judge Peter Smith that the dispute, set for trial later this year, has been resolved. Bayerische Landesbank, Lehman Brothers and J.P. Morgan Chase own 75 percent of Ecclestone's SLEC Holdings, which runs Formula One.
In December, the court ruled in favor of the banks, saying Ecclestone acted unfairly in preventing them from appointing board members to the holding companies within SLEC.
Ecclestone has controlled F1 for 25 years. A rival group, known as Grand Prix World Championship, is threatening to start its own series - or take over F1 - in 2008.
The holding company GPWC was founded by three of the major F1 carmakers - BMW, Mercedes and Renault. Toyota and Honda also have endorsed GPWC's plans.
GPWC is reported ready to pay the teams about 80 percent of the sport's commercial rights income. Ecclestone has been paying out about 23 percent.
Ferrari agreed earlier this year to stay with Ecclestone through 2012, but the other nine F1 teams have balked.
F1, which began racing in 1950, competes in Asia, Australia, Europe, North America and South America.
Wed Mar 23, 5:56 PM
LONDON - Formula One chief Bernie Ecclestone and three banks have reached agreement over control of the world's premier open-wheel racing series.
Details of the settlement were not disclosed Wednesday, and it was not immediately clear what impact the agreement would have on the sport. Ecclestone is trying to fight off a rival breakaway series.
His attorneys and those representing the banks told High Court Judge Peter Smith that the dispute, set for trial later this year, has been resolved. Bayerische Landesbank, Lehman Brothers and J.P. Morgan Chase own 75 percent of Ecclestone's SLEC Holdings, which runs Formula One.
In December, the court ruled in favor of the banks, saying Ecclestone acted unfairly in preventing them from appointing board members to the holding companies within SLEC.
Ecclestone has controlled F1 for 25 years. A rival group, known as Grand Prix World Championship, is threatening to start its own series - or take over F1 - in 2008.
The holding company GPWC was founded by three of the major F1 carmakers - BMW, Mercedes and Renault. Toyota and Honda also have endorsed GPWC's plans.
GPWC is reported ready to pay the teams about 80 percent of the sport's commercial rights income. Ecclestone has been paying out about 23 percent.
Ferrari agreed earlier this year to stay with Ecclestone through 2012, but the other nine F1 teams have balked.
F1, which began racing in 1950, competes in Asia, Australia, Europe, North America and South America.
