Brawn GP sponsorship row resolved

Brawn GP chiefs have avoided a potentially embarrassing legal fight ahead of the start of the new Formula One season.

Henkel, a German consumer products group, last month filed legal proceedings against Brawn GP, who have since been bought out and will compete as Mercedes GP in 2010.

The company insisted a three-year sponsorship deal with the team, believed to be worth £80m (€89.5m), was invalid as the agreement was signed by a former employee without authorisation.

Henkel made clear they informed Daimler, the parent company of Mercedes-Benz, of the situation in September.

However, the matter has now been resolved without the need for Brawn officials to be dragged through the courts.

A Mercedes statement read: “Brawn GP announce today the differences between Brawn GP and Henkel with regard to a Formula One sponsorship have been resolved by mutual agreement.

“All potential claims will be dropped. As a consequence, all court proceedings will be withdrawn.

“The new Formula One team Mercedes GP Petronas, together with the colleagues from the former Formula One team Brawn GP, will continue to co-operate with the prosecutor’s office and assist in the further clarification of the matter.”

No further details will be forthcoming as all parties have agreed on confidentiality.

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