Ecclestone and banks reach agreement

Bernie Ecclestone and the three banks that own 75% of Formula One's holding company SLEC have made an agreement in regard to control of F1's commercial rights, it was reported on March 23rd. The case was due to be heard in court later this month...

Bernie Ecclestone and the three banks that own 75% of Formula One's holding company SLEC have made an agreement in regard to control of F1's commercial rights, it was reported on March 23rd. The case was due to be heard in court later this month but the parties have now reached a settlement, although no details were disclosed.

Late last year banks Bayerische Landesbank, JP Morgan and Lehman Brothers, known as Speed Investments, took legal action against appointments Ecclestone's Formula One Administration (FOA) made to its board of directors and won the case.

Since then the banks have been seeking more control over Ecclestone's F1 operating companies, such as FOA, but it appears the legal dispute has been resolved. However, with details of the settlement being kept quiet, it still remains unclear who controls the sport.

It's been suggested that Ecclestone and the banks are operating under a confidentiality agreement as the threat of the manufacturer breakaway group is still present. The manufacturers have been following the legal disputes closely as the outcome could affect their plans for a rival series in 2008.

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Series Formula 1
Drivers Bernie Ecclestone