Qadbak Investments
Encyclopedia
Qadbak Investments Ltd is a British Virgin Islands
registered company
which has served as the vehicle for the purchase of English football club Notts County
for £1, and for the failed attempt to purchase Formula One
team BMW Sauber
The company first came to public prominence in July 2009 upon their purchase of Notts County via its subsidiary Munto Finance. In September 2009, it was announced that they had signed an agreement to purchase the BMW Sauber Formula One team, hastening its return to the F1 fold.
Qadbak Investments was purported by numerous sources, including official statements
from both Notts County and BMW, to represent the collective interests of "certain Middle Eastern and European-based families". In November 2009, it was discovered that behind Qadbak Investments there are no such investors.
-based". Later reports have stated that the company, as well as its subsidiary Munto Finance, are registered within the British Virgin Islands, what has been confirmed by British Virgin Islands Financial Services Commission
on 24 September 2009 after a request made by Swiss newspaper SonntagsZeitung.
as director of football
. On November 27, 2009 The Guardian revealed that Sven-Goran Eriksson has demanded immediate payment of the multimillion-pound sum under the terms of his recruitment by Notts County.
German automotive conglomerate BMW
were advised during the planning phases of Qadbak's takeover by leading British investment bank Rothschild
, whose managing director Meyrick Cox had stated that Qadbak was "a wholly reputable organisation". In November 2009 however Rothschild denied being involved in any financial transaction between Qadbak and BMW; they merely acted as BMW's adviser.
Contrary to reports by the British media, the source of Qadbak's finances were indeed known to the Notts County Supporters' Trust, who were bound to a confidentiality agreement due to the takeover. On September 27, 2009, Notts County released a statement in which it revealed two families who were purportedly involved in the trust which owns the club, the Shafi and Hyat families, both "noted business families" with "numerous investments" in the Middle East, Japan
, Kazakhstan
, Europe
and North America
, with the club having "respected the families' privacy" beforehand. In a response to the press release, Anwar Shafi, a member of the Shafi family, denied that he had a connection with the club or an investment in Qadbak. The club subsequently released a further statement, purporting to be from the Hyat/Shafi Family Trust and its head, Sardar Hyat, confirming its involvement with Qadbak and Notts County.
On October 20, 2009, the Football League announced that Notts County's owners had met its "fit and proper persons" regulations, and that while their structure was "complicated" and featured "both offshore entities and discretionary trusts", it had provided "extensive disclosure" to the League on their ownership structure. The League also stated that public disclosure of their ownership structure was a "matter for the club".
As of 18 November 2009, German automobile manufacturer BMW is still the official owner of BMW Sauber Formula One team and continues to pay the salaries of their approximately 400 employees. On November 27, BMW announced that it was to sell the team to Peter Sauber instead of Qadbak. A spokesman for BMW was reported in the Guardian newspaper as saying that the combination of no legally effective contract and no starting place on the grid caused the deal with Qadbak to be cancelled. If the Qadbak deal had been put in place, former Sauber
drivers Giancarlo Fisichella
and Nick Heidfeld
would have been driving for them.
British Virgin Islands
The Virgin Islands, often called the British Virgin Islands , is a British overseas territory and overseas territory of the European Union, located in the Caribbean to the east of Puerto Rico. The islands make up part of the Virgin Islands archipelago, the remaining islands constituting the U.S...
registered company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
which has served as the vehicle for the purchase of English football club Notts County
Notts County F.C.
Notts County Football Club are an English professional football club based in Nottingham. They are the oldest of all the clubs in the world that are now professional, having been formed in 1862. They currently play in League One of The Football League, the third tier of the English football system...
for £1, and for the failed attempt to purchase Formula One
Formula One
Formula One, also known as Formula 1 or F1 and referred to officially as the FIA Formula One World Championship, is the highest class of single seater auto racing sanctioned by the Fédération Internationale de l'Automobile . The "formula" designation in the name refers to a set of rules with which...
team BMW Sauber
BMW Sauber
BMW has been involved in Formula One in a number of capacities since the inauguration of the World Drivers' Championship in . The company entered occasional races in the 1950s and 1960s , before building the BMW M12/13 inline-four turbocharged engine in the 1980s...
The company first came to public prominence in July 2009 upon their purchase of Notts County via its subsidiary Munto Finance. In September 2009, it was announced that they had signed an agreement to purchase the BMW Sauber Formula One team, hastening its return to the F1 fold.
Qadbak Investments was purported by numerous sources, including official statements
News release
A press release, news release, media release, press statement or video release is a written or recorded communication directed at members of the news media for the purpose of announcing something ostensibly newsworthy...
from both Notts County and BMW, to represent the collective interests of "certain Middle Eastern and European-based families". In November 2009, it was discovered that behind Qadbak Investments there are no such investors.
Ownership structure
Details concerning the source of the company's finances have been kept confidential, with both initial and later reports and official press releases stating that it is "SwissSwitzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
-based". Later reports have stated that the company, as well as its subsidiary Munto Finance, are registered within the British Virgin Islands, what has been confirmed by British Virgin Islands Financial Services Commission
British Virgin Islands Financial Services Commission
The BVI Financial Services Commission is an autonomous regulatory authority responsible for the regulation, supervision and inspection of all financial services in and from within the British Virgin Islands, including insurance, banking, trustee business, company management, mutual funds business...
on 24 September 2009 after a request made by Swiss newspaper SonntagsZeitung.
History
The company had been represented during the BMW Sauber takeover by Lionel Fischer, a Swiss national, and two of its representative directors on the Notts County board, Peter and Nathan Willett, who appointed Sven-Goran ErikssonSven-Göran Eriksson
Sven-Göran Eriksson , in Sweden commonly referred to just by his nickname Svennis, is a Swedish ex-football manager. From October 2010 to October 2011 he managed Football League Championship side Leicester City....
as director of football
Director of football
"Director of football" is a term describing a senior management figure at a football club, most commonly used in Europe. The exact nature of the role is often unclear and extremely variable and causes much debate in the sports media...
. On November 27, 2009 The Guardian revealed that Sven-Goran Eriksson has demanded immediate payment of the multimillion-pound sum under the terms of his recruitment by Notts County.
German automotive conglomerate BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
were advised during the planning phases of Qadbak's takeover by leading British investment bank Rothschild
N M Rothschild & Sons
N M Rothschild & Sons is a private investment banking company, belonging to the Rothschild family...
, whose managing director Meyrick Cox had stated that Qadbak was "a wholly reputable organisation". In November 2009 however Rothschild denied being involved in any financial transaction between Qadbak and BMW; they merely acted as BMW's adviser.
Contrary to reports by the British media, the source of Qadbak's finances were indeed known to the Notts County Supporters' Trust, who were bound to a confidentiality agreement due to the takeover. On September 27, 2009, Notts County released a statement in which it revealed two families who were purportedly involved in the trust which owns the club, the Shafi and Hyat families, both "noted business families" with "numerous investments" in the Middle East, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, with the club having "respected the families' privacy" beforehand. In a response to the press release, Anwar Shafi, a member of the Shafi family, denied that he had a connection with the club or an investment in Qadbak. The club subsequently released a further statement, purporting to be from the Hyat/Shafi Family Trust and its head, Sardar Hyat, confirming its involvement with Qadbak and Notts County.
On October 20, 2009, the Football League announced that Notts County's owners had met its "fit and proper persons" regulations, and that while their structure was "complicated" and featured "both offshore entities and discretionary trusts", it had provided "extensive disclosure" to the League on their ownership structure. The League also stated that public disclosure of their ownership structure was a "matter for the club".
As of 18 November 2009, German automobile manufacturer BMW is still the official owner of BMW Sauber Formula One team and continues to pay the salaries of their approximately 400 employees. On November 27, BMW announced that it was to sell the team to Peter Sauber instead of Qadbak. A spokesman for BMW was reported in the Guardian newspaper as saying that the combination of no legally effective contract and no starting place on the grid caused the deal with Qadbak to be cancelled. If the Qadbak deal had been put in place, former Sauber
Sauber
Sauber F1 Team is a Swiss Formula One team. It was founded in the 1970s by Peter Sauber, who progressed through hillclimbing and the World Sportscar Championship to reach Formula One in 1993....
drivers Giancarlo Fisichella
Giancarlo Fisichella
Giancarlo Fisichella , also known as Fisico, Giano or Fisi, is an Italian racing driver. He has driven in Formula One for Minardi, Jordan, Benetton, Sauber, Renault, Force India and Ferrari. Nowadays, he drives for AF Corse's GT2 Ferrari in various sportscar events...
and Nick Heidfeld
Nick Heidfeld
Nick Lars Heidfeld is a German racing driver.Despite scoring regular podium finishes in and , Heidfeld has yet to win a race since entering Formula One in . This means that amongst the current drivers, he has had the most GP starts without standing at the top spot on the podium...
would have been driving for them.