Henkel “a brand like a friend” is no friend to MercedesGP, or Daimler

Multiple news stories have been published Monday, noting that there is a fraud investigation underway regarding The Team Formerly Known as Brawn (cue questions about Michael Schumacher), and a sponsorship deal with German manufacturer Henkel that has involved the team’s new parent company Daimler.

Apparently, while the team was still BrawnGP, a sponsorship deal was hammered out with home care and beauty products company Henkel for $130 million, €90 million, or £81 million, depending on your currency of choice.  Now, though, leading German economic newspaper Handelsblatt has reported that the deal was put together by the former head of sponsorship activities for Henkel, using stolen letterhead and misrepresenting himself so as to make money to line his own pockets.

There are some discrepancies in this sticky situation, with some reports stating that the man was still employed by Henkel at the time of the misrepresentation, as well as noting that Henkel either informed Brawn on September 28 that the deal was invalid or that the fraud was discovered after the Daimler-Mercedes takeover had occurred, wrote Autoweek.

What is most difficult to know is how this (and the legal battle that has commenced, as Henkel has filed paperwork to keep from having to pay and Daimler the opposite) will affect the future of MercedesGP.  When Mercedes took over the team, it was publicly stated that the company was looking for an investment that would allow them to spend less money than they were with a non-controlling stake in McLaren.  The money that Brawn, and Mercedes, were counting on is not a small amount, even in F1.  Some suggestions have even been made that without this Henkel deal, there will not be enough in the coffers to pay for Michael Schumacher.

This argument and concern seems somewhat silly .  If, as most reports suggest, the deal fell through at the end of September, the team and companies have had nearly three months to look for other sources of income, and another three until the season begins.  Of course they will attempt to hold Henkel to the contract, because another $130 million is always helpful, but if BrawnGP can rise from the ashes of Honda in a month and go on to win a championship, then they can figure out where to find this extra money.

Even if a court would declare the deal between Henkel and BrawnGP binding, all those involved know that the 2010 season will be over before a decision will be made.  While this makes for fascinating discussions about the sort of management that could be misrepresented and misrepresented to, this news feels old in this ever-changing 2010 silly season.

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