Mercedes GP in dispute with sponsor

Reports claim the dispute dates back to July when a three-year deal was signed with Henkel

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Monday, 14, Dec 2009 03:19

By Adam Leveridge

The Mercedes GP team is embroiled in a legal dispute over around ?90 million of sponsorship with German company Henkel, who produce the Persil washing powder.

According to German newspaper Handelsblatt, the argument dates back to July when the Brackley-based team - formerly known as Brawn GP - agreed a three-year deal with the company.

However, Mercedes GP is believed to have contacted Henkel after the takeover by the German manufacturer - only for the Dusseldorf company to deny having any dealings with the outfit in the past.

Henkel argues that the company's former head of corporate affairs, who signed off the deal, had no right to do so, rendering the contract with Mercedes GP invalid.

The departed Henkel employee is now facing prosecution for fraud, whereas Mercedes GP is believed to be arguing that the individual did have the right to sign the contract and confirm the deal.