Aquick Google search on Bernie Ecclestone opens a Wikipedia preview that lists him as a ‘racing driver.’ Further reading reveals that he failed to qualify for two Grand Prix back in the 1958 season. I guess that was the last time Ecclestone experienced ‘failure’ in Formula 1!
Last month, Ecclestone’s bribery scandal took an interestingly complex turn – yes, even settlement claims linked to Formula 1 aren’t simple. Ecclestone paid $100 million to settle a claim for a $44 million bribe he allegedly paid to an officer of the German bank BayernLB, which owned a 42.7% stake in the F1. It’s not the Ecclestone claimed he didn’t pay the money – he admits to paying it, but says it was blackmail rather than a bribe! Yes, please go ahead and read that statement once again. The man who has singlehandedly driven commercial success in Formula 1 has now managed to commercialise his criminal charges, Heck, he even managed to commercialise a mugging attempt back in 2010 (with watchmaker Hublot).
While the truth behind the bribery, and the subsequent scandal, might never come out, what interests me more is Ecclestone’s attitude towards it. Of the $100 million, $99 million will be received by the state of Bavaria and the remaining $1 million by a local children’s hospital – Ecclestone’s only contribution to charity that I can remember. A drop in the ocean for a man worth nearly $4 billion, and contextually a small sum to remain at the helm of a sport that he’s earned his fortune from.
While columnists like me might prefer to joke about this situation (and so does he), had things not gone Ecclestone’s way (yet again), he would have had to serve time in prison. And that’s at a time when the sport needs him the most – or does it?
Declining TV numbers and circuit attendances, lack of team sponsorships and financial stability, inconsistent and illogical rule changes are only some of the problems that the sport faces in 2014 – apart from a near total dominance by Mercedes. And history has shown that dominance in Formula 1 leads to a further drop in TV figures. But that’s beside the point.
The question is – can Ecclestone resurrect the sport? I hope so, and I’m sure this hope is shared by most other fans and paddock insiders – at least publicly anyway. He clearly is the genius who has brought Formula 1 to its pinnacle as a global racing series, and has ensured its commercial success for the last three decades. But he is also the man who many think will destroy the sport. Given the recent spate of rule changes, arrogant expansion, and ignorance of new age media, one could strongly make that case.
Secretly, I wouldn’t be surprised if many teams and insiders would’ve hoped for imprisonment to forcefully bring an end to the Ecclestone-era in Formula 1 – one that will be known for its dictatorial style of management rather than openness. His capitalist nature has made him a fortune, and has helped the sport attract investments (from CVC, and the like), but it has done little to create greater stability for the teams (apart from earnings), and far too little to keep the existing fans engaged – not to mention attract fans from newer territories.
But can Formula 1 survive without Mr. E? In its current state, I doubt it. As always, a succession plan is all but ignored. Talk of Ecclestone’s replacement has been PR spin at best. To keep his position intact, he’s successfully played one team against the other in a classic ‘divide-and-rule’ policy.
The question that I’m often asked is why the teams can’t commercialise the sport themselves – given that each of them manage massive brands and businesses themselves. And while this seems like a logical thought, history has proved that teams have rarely agreed on key aspects connected to the sport – business or otherwise – and this is how Ecclestone took charge (commercially) of the sport way back in the 70’s in the first place.
During his tenure, Ecclestone has survived threats of a ‘breakaway series’ multiple times, followed by the teams attempting to unite under FOTA (Formula One Teams Association). The latest bribery scandal, his eventual release and return to the helm, only indicates that Ecclestone and Formula 1 are a match made in heaven. So, in Bernie, we hope – even if we can’t necessarily trust!.
Read Kunal’s views at his F1 blog.
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