Ecclestone Denies $50m Corruption Payment

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Formula One chief Bernie Ecclestone claims an investigation has cleared his business of any wrongdoing in connection with allegedly corrupt payments made in connection with the sport's sale to private equity firm CVC.

The outcome of the investigation, carried out by Ernst & Young and Freshfields, should stop the scandal casting a shadow over this year's F1 season which begins in Australia this weekend.

The investigation surrounded a payment of $50m (£30.7m) to banker Gerhard Gribkowsky after he represented German state-owned bank BayernLB in the sale of its 47.2pc stake in F1 to CVC. Prosecutors in Germany allege he undervalued the stake and "in turn received $50m in payments disguised via two consultancy agreements."

After selling the stake Mr Gribkowsky became a director of F1's Jersey-based rights holding company Delta Topco. He was arrested in January on suspicion of bribery, breach of trust and tax evasion. Last month the Delta Topco board instructed Freshfields and Ernst & Young to investigate the circumstances surrounding the acquisition.

Mr Ecclestone told: "That has all gone on and they haven't found anything."

Mr Ecclestone denies paying $50m to Gribkowsky and CVC has also said that "it has no knowledge of, nor any involvement in, any payment to Mr Gribkowsky or anyone connected with him in relation to CVC's acquisition of Formula One."

Earlier this month it was reported that CVC had spoken to Sir Stuart Rose, the former boss of Marks & Spencer, about becoming non-executive chairman of Delta Topco. However, Mr Ecclestone rubbished the report: "I don't think they need a chairman. Chairmen don't run companies."

Mr Ecclestone said that CVC "wish that all this with Gerhard hadn't have happened." However, he says the private equity firm "isn't looking at selling" its 63.4pc stake in Delta Topco and may not exit F1 at all since it gets a sufficient return from an annual dividend.

In 2009 Delta Topco had revenues of $1.6bn and, according to F1's trade guide Formula Money, it made net profit of over $300m. Its revenue increases by around 10pc annually due to escalator clauses in its key contracts and it is no longer highly leveraged.

Ernst & Young declined to comment while Freshfields could not be reached.