Banks sue over representation

Bernie Ecclestone sold three quarters of the company to the Kirch media group, which subsequently went bankrupt and left the three banks that had loaned Kirch the money, holding the stock.

Bayerische Landesbank, JP Morgan Chase Bank and Lehman Bros are the three financial institutions with the investment in SLEC, while Bernie Ecclestone currently holds the remaining 25 percent.

For some time Ecclestone and the banks have been negotiating with the GPWC, an organisation comprising five major F1 manufacturers (BMW, Daimler Chrysler, Fiat, Ford and Renault) over the sports future constitution when the current Concorde Agreement governing F1 expires in 2007.

The manufacturers and the teams want a bigger slice of the financial pie than has hitherto been the case under Ecclestone's reign and the banks are keen to realise something for their investment because, without a deal, and in the event of a breakaway championship being organised, their investment is worthless.

A spokesman for Bayerische Landesbank confirmed that the law suit had been filed and although he declined to comment further, the central issue is understood to be the representation of the banks on the SLEC board.

In the original deal, Ecclestone retained control over board appointments despite his minority holding, but in a provisional new agreement hammered out with the GPWC last December, board representation was a key issue. The banks are now understood to be attempting to get the court to establish their right to make appointments commensurate with their majority holding.

The outcome could obviously have a fundamental bearing on who is left holding the sport's reins of power.