Bernie Ecclestone is a force of nature. Even at the age of 82, he strides up and down pit lane and the paddock area with the same boundless energy that has marked his reign over Formula One racing for the past three decades, and counting. Sitting down inside his small, unguarded private tent in the paddock area behind the pit lane, it was fascinating to watch Ecclestone at work at this years’ Canadian Grand Prix in Montreal.
Shortly before noon, various celebrity guests – British actors Michael Fassbender and James McAvoy, billionaire Cirque de Soleil founder Guy Laliberté – arrived to pay tribute to him in much the same manner as foreign dignitaries might come to greet a world leader or royal head of state. This is a fitting comparison, however, as Ecclestone has ruled over the sport in a benevolent, iron-fisted way that has seen him transform a formerly rag-tag operation composed of factional racing tribes into a multi-billion dollar global business empire.
Unlike national potentates, however, Ecclestone has little need for ceremony. There is no excess baggage or artifice to his world or manner. He speaks in plain terms using an economy of words to state precisely what he thinks and feels. He has long sealed deals with a single handshake, and adheres to an old-world expectation that one’s word is one’s bond.
Bernie, as he’s been known for years to people within F1, likes to come to the point and has never seen the need to embellish anything. It’s that kind of brutal efficiency that has marked his time as ringmaster of the Formula One circus that has become the greatest sporting show on earth. He was the first to identify the ultimate potential of television to turn F1 racing into a worldwide spectacle, and in the process has made billions from his management and ownership of the sport’s commercial activities.
Ecclestone’s business philosophy is essentially one of challenging you to make a deal with him and see how you fare. After all, when in 2000 he (via his family trust) sold off a 75% stake in F1’s marketing company, his family trust earned $3.37 billion, yet still owned 25% of the operation while retaining effective management control of the sport. It’s the kind of deal that any business school ought to use as a master case study in the art of outmanoeuvring your opponent. The German newsmagazine Der Spiegel recently described this deal as a “brilliant coup.”
But today, the master dealmaker is under assault on several fronts. In November 2011, Ecclestone was called upon to testify in a Munich courtroom in the trial of Gerhard Gribkowsky, the former BayernLB banker in Germany who oversaw the 2006 sale of F1 to CVC, a private equity fund, which netted the Ecclestone family trust, Bambino Holding, a reported $478 million profit. Gribkowsky, the BayernLB’s chief risk officer, was accused of accepting a bribe of $44 million (£27m) to deliberately undervalue the shares of F1 so that the bank sold the shares for $800 million rather than the more plausible value of $2.8 billion, as has been charged in court documents. Gribkowsky was subsequently found guilty and sentenced to an eight-and-a-half-year prison sentence.
Ecclestone admits that his family trust Bambino Holdings paid the sum to Gribkowsky but denies it was a bribe, testifying in court that it was the result of a subtle “shakedown” on him by Mr. Gribkowsky, who was effectively blackmailing the billionaire Briton by threatening to present “false evidence” about him to British tax authorities.
In May, the influential Munich daily Süddeutsche Zeitung reported that Munich prosecutors had decided to file charges against Ecclestone relating to the Gribkowsky bribery case and that the indictment would be handed down as soon as the complicated legal documents could be translated into English.
Despite this, Bernie Ecclestone appeared as cool as could be in the face of any possible criminal proceedings against him in Germany. He was looking forward to attending his daughter Tamara’s wedding in southern France and absolutely serene in his self-belief that he had done nothing wrong. Given his unparalleled success in defeating virtually every adversary he has ever faced, why should anyone doubt the man now?
Here are excerpts from the interview:
Mr. Ecclestone, many of your admirers as well as detractors would tend to agree on one point – that you are generally a man without fear. Do you have any fears?
No. It could well be one of my greatest assets, or strengths. I won’t be threatened or intimidated by anyone, and I’ve always been prepared to do what is necessary to defend my interests.
Was there a point when you arrived in Formula One that you felt if no one else was going to bring organization and better management to the sport then you were going to do it?
When I arrived in the sport it was a very amateurish show. (Amongst the team owners) Nobody cared or wanted to take responsibility for organising the sport – they just wanted to race their cars and try to win races. It wasn’t good for the drivers, the teams, or the fans the way things were going. But you need to have proper management if you’re going to move forward. I tried to do what I thought was good for the sport and also what seemed necessary.
Max Mosley’s reputation has suffered in recent years with the scandal involving the News of the World report (involving call girls)? Do you feel Mosley’s contribution to the sport has been unfairly tainted by all this?
Absolutely. That’s why he was so determined to defend himself against the reports, and pursued matters in the courts. He felt his personal rights and privacy had been violated and it was nobody else’s business.
Max and I have always been very close. We were more friends than partners. He brought a legal background to the business and many other things which helped the sport evolve.
ON FACING POSSIBLE BRIBERY CHARGES
Does it trouble you that you may be facing charges in Germany, a country whose state prosecutors may be engaged in overzealous pursuit of high profile individuals ranging from Germany’s former president Christian Wulff to Uli Hoeness, president of the Bayern Munich football club?
I haven’t followed the news concerning this “hostile climate” so I can’t really speculate. But I have a lot of faith in justice systems around the world even though there were cases in the past where that faith wasn’t justified in some countries.
I think, in the end, officials in each country’s judicial system will do what they believe is right because if they do something bad to somebody it’s on their conscience for the rest of their lives.
I don’t think people go out of the way to pursue people without cause. Sometimes it’s reported that way but I don’t believe that’s the case.
So you have confidence that you will be treated fairly whatever comes to pass in Germany?
Yes. Absolutely. I have 100% confidence in the German judicial system. I am not worried in the least because I have told the truth.
Do you feel, in retrospect, that your decision to testify in the Gribkowsky trial in Germany (at the end of 2011) might have been a strategic mistake in that your testimony may at some point be used against you?
I was asked to appear and I appeared. Anything I said at the trial was the truth so I have no reason to believe or expect that anything could be turned against me.
Do you believe that the German legal system was tilted against Gribowsky?
No. I don’t think so, but I’m not really familiar with (the German system). I do know that Gribkowsky changed his defence several times.
What have your German lawyers told you about what to expect should you be charged in this matter?
Nothing. They haven’t briefed me because you can’t make decisions if there are no charges or issues to deal with. So, it’s quite normal to wait until there is some reason to react.
But I am not in any way ashamed of anything I have done in this case. I am not at all troubled or worried, and we will have to wait until matters develop further.
Can you see things ever coming to the point where you would one day have to hand over your job to someone else?
I don’t think I will ever need to hand over my job to someone else. If I’m not here there will always be someone capable to do what I’m doing.
In retrospect, would you have handled things differently given your testimony that Gribkowsky was in effect shaking you down for a payment, and that you might have gone to the authorities yourself when you felt he was trying to blackmail you?
What happens in life – I don’t know whether it’s happened to you – but it’s happened to me quite a few times, it’s this wonderful thing called hindsight. But how useful is it?
ON HIS LEGACY AND DEALMAKING TALENTS
How do you see your legacy in the development of Formula One into a multi-billion dollar operation?
All sports have developed, and I took some charge of things because they needed to be done and if it hadn’t been me, someone else would probably have brought Formula One forward. What we did was to make the necessary changes and I’m happy to have been part of that process.
Did you always have a long-term strategy or was it more of an incremental approach to your management of Formula One?
It was more a case of looking at things that needed to be improved. When I was running Brabham, I didn’t have any strategy for expanding the sport, but I knew what had to be changed for the sake of the sport and making it a better product. That kind of thinking probably helped me when I began managing things, and was able to make the changes we all knew had to be made. Later on, I knew we had to expand beyond Europe and go to Asia and places like Singapore.
You’ve long been described as a fearsome negotiator and master dealmaker. When did you realise in life that you had a particular talent in this area?
It’s like being a singer or an artist. You’re born with certain gifts, and you use them as best you can in life. You begin to learn and recognise that you have certain skills and aptitudes that you can use to carry you forward. I don’t have any talent as an artist, but I do have an awareness for business and what you need to bring to that world. It helps to know what you’re good at.
Was there any one particular moment where it struck you that deal making was something in which you excelled?
No, not really. Gradually I became better at it and then each new deal is another opportunity. But you should really ask the other people I’ve made deals with about what they think (smiles).
ON JAMES HUNT AND THE UPCOMING FILM F1-RELATED FILM “RUSH”
Ron Howard’s new film Rush about the 1976 Formula One Championship and rivalry between Niki Lauda and James Hunt is the first F1 racing film since John Frankenheimer’s Grand Prix. Have you seen any previews of it yet?
I haven’t seen the film yet, but it seems that other people who have seen it say that it’s very good and everyone is excited about it. I’m looking forward to seeing it.
What are your memories of that final race day in Tokyo, which decided the 1976 championship (Lauda was leading Hunt by 3 points going into it)?
There was a lot of rain, of course, and everyone said that I shouldn’t have started the race because it was supposedly too wet. But I was always determined that races should begin on time and I never deviated from that policy.
Of course, there was going to be a big TV audience but that had nothing to do with my decision. I believe when you say you’re going to start a race at 2pm then you should stick to that and start the race at 2pm. There’s no maybe, could be, or should be. You start the race on time. It’s very simple.
What did you make of Hunt’s decision, and that of the other (15 drivers) who decided to stay in the race as opposed to Niki Lauda who dropped out after 2 laps because he felt conditions were too dangerous?
Don’t forget that Niki had had a terrible accident at Nurburgring that year and nearly died and that he didn’t need to risk another one.
What was your impression of Hunt, who was probably one of the most colourful characters in the history of motor racing?
We could do with another James Hunt. I was pretty close to James, and I have lots of great memories of him. I never partied with him because I’m not a party guy but he was terrific for the sport. Those kinds of personalities are very rare. He was a unique man.
Sir Jackie Stewart says that today’s drivers are spoiled, compared to drivers of the 60s and 70s?
Things have changed. They were very different times. Drivers in that (past) era were taking much greater risks and they had a different attitude. You can’t compare eras. But drivers of each era adapt to the needs and climate of their time. There are good and bad points to every era of the sport. I’m not really nostalgic about the past.
Are you sad to have witnessed the loss of the kind of camaraderie in the sport, especially between the drivers?
I honestly don’t care what they do! The teams and the sponsors are placing more responsibility on the drivers and so maybe they are more careful – but when there is more money at stake it affects the atmosphere and things become more business-like.
ECCLESTONE ON FATHERHOOD
You have long been known for your dedication to the sport of Formula One – some might even describe you as a workaholic. But you’re also a family man whose daughters Tamara and Petra are now both adults. How do you look back on your days when you were raising your daughters?
I didn’t devote as much time to them as I would have liked. I never neglected my daughters – quite the opposite – but I suppose I could have and should have spent more time with them. I have no regrets though about the amount of work I put into the sport. This is what I needed to do with my life. But when they’re no longer there for you to look after, you always think about how you could have done things a bit differently.
Were you disappointed that Tamara posed for Playboy Magazine?
No. I didn’t think there was anything wrong with that. It didn’t bother me at all.
You started out in business from scratch and developed a knack for making money. Have you ever tried to impart your business sense to your daughters?
No. I never felt it was necessary. It’s in their genes! They are both very intelligent and capable. Petra started a very good clothing business that was too good in terms of quality in a difficult market and it unfortunately didn’t work out.
Now she’s into producing these clutch bags (Stark handbags) and doing very well with that. And Tamara is doing an incredible (hair-care products) line that is being sold in major stores all over the world. They’re both doing very well. They also do a lot of charity work a lot of which you don’t hear about.
Do they ever come to you for business advice?
No. I let them do their own thing. Overall they’ve made some very good investments and I don’t worry that they can’t manage on their own. They don’t make decisions casually.
Your daughters have become celebrities over the years. Do you feel the need to be protective of them?
When it’s necessary I will defend them. They’re in the public eye and because of their name and so they are going to pay a price for that. Doing television also exposes one to that. But they’re both old enough and bright enough to be able to handle things. They have strong personalities. (As a father) I’m close to them, but they don’t really need me to advise them on how to manage their lives, and they don’t ask me to do that (smiles).
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