Sponsorship scam hits Mercedes GP
12-14-2009 | 12:34 PM
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Sponsorship scam hits Mercedes GP
The German media has revealed an alleged sponsorship scam that could leave a massive hole in the budget of the new Mercedes GP Formula One team.
Before Mercedes' announced its takeover of the Brawn GP team last month, Brawn apparently agreed to a giant sponsorship deal with the Henkel consumer products company. Its roster of famous brand names includes Persil detergent, Schwarzkopf shampoo, and adhesives Loctite, Unibond and Pritt.
Signed at the end of July, the deal is believed to be worth as much as 30 million euros, or $43 million, a year for three years
The company is headquartered in Germany, so there was obviously a lot of synergy with both the Mercedes tie-in and the decision to hire Nico Rosberg (and just possibly, Michael Schumacher). The timing may help to explain why Rosberg topped the team's shopping list in the summer.
Mercedes made it clear when it announced its Brawn takeover that it would spend a lot less as a team owner than when it was a McLaren partner, and sponsorship income was a factor in that calculation.
However, it has emerged that the guy who signed the deal on Henkel's behalf was not authorized to do so. Furthermore, he was using the company's name for his own ends, and fabricated paperwork.
Some reports say that only after the Mercedes deal was "finalized" did the truth come out, and only then after the Mercedes CEO contacted his counterpart at Henkel. However, Henkel revealed on Monday that it told Brawn as long ago as Sept. 28 that the deal was not a real one.
Henkel is also reported to be taking legal action against Brawn to demonstrate that it has no financial obligations, while Daimler claims that it does.
Read more: http://www.autoweek.com/article/2009...#ixzz0ZgK9tLRx
Before Mercedes' announced its takeover of the Brawn GP team last month, Brawn apparently agreed to a giant sponsorship deal with the Henkel consumer products company. Its roster of famous brand names includes Persil detergent, Schwarzkopf shampoo, and adhesives Loctite, Unibond and Pritt.
Signed at the end of July, the deal is believed to be worth as much as 30 million euros, or $43 million, a year for three years
The company is headquartered in Germany, so there was obviously a lot of synergy with both the Mercedes tie-in and the decision to hire Nico Rosberg (and just possibly, Michael Schumacher). The timing may help to explain why Rosberg topped the team's shopping list in the summer.
Mercedes made it clear when it announced its Brawn takeover that it would spend a lot less as a team owner than when it was a McLaren partner, and sponsorship income was a factor in that calculation.
However, it has emerged that the guy who signed the deal on Henkel's behalf was not authorized to do so. Furthermore, he was using the company's name for his own ends, and fabricated paperwork.
Some reports say that only after the Mercedes deal was "finalized" did the truth come out, and only then after the Mercedes CEO contacted his counterpart at Henkel. However, Henkel revealed on Monday that it told Brawn as long ago as Sept. 28 that the deal was not a real one.
Henkel is also reported to be taking legal action against Brawn to demonstrate that it has no financial obligations, while Daimler claims that it does.
Read more: http://www.autoweek.com/article/2009...#ixzz0ZgK9tLRx
