Force India F1 Team Principal Vijay Mallya's loss will be the team's gain, according to Kevin Eason of the LONDON TIMES. Mallya's "golden goodbye" from the Diageo drinks company will "ensure an injection of crucial sponsorship money for the Formula One team." Reports from India said that Mallya has been "forced to walk away from Diageo," but takes with him a $75M payoff plus £11M ($15.3M) of annual Force India sponsorship from the Smirnoff vodka brand, owned by Diageo, "for another five years." As golden goodbyes go, "this one will put smiles on faces at the Silverstone factory where staff are working hard to refine the team’s 2016 car." The payoff "brings an end to a long saga in India where Mallya’s family businesses have become a major source of controversy." His Kingfisher Airlines business "crashed three years ago, while he has been at war with Diageo ever since the British multinational took over United Spirits, the brewery business." Mallya is "expected to spend more time running the Force India team" (LONDON TIMES, 2/26). DNA INDIA reported Mallya asserted that his stepping down as United Spirits Ltd. chair "will not affect his control in Formula One team, Sahara Force India." Mallya said that he is "still the boss at Force India." Mallya: "Nothing has changed at Force India. I remain team principal and managing director. If you take loan, you give some shares as security. That does not mean security has changed. Diageo may have security over my shares but ownership has not changed. ... Formula One has nothing to do with my stepping down from United Spirits. They are not connected at all" (DNA INDIA, 2/28). In London, Amy Kazmin reported under the terms of the agreement announced, Diageo will pay Mallya $75M over five years, "during which he has agreed not to compete against the group." Diageo, which will book the payment as an "exception item," defended the hefty payout, and said that it would "end the uncertainty hovering over United Spirits, and its governance." Diageo CEO Ivan Menezes said that the agreement was "in the best interests" of both companies (FINANCIAL TIMES, 2/26). The INT'L BUSINESS TIMES' Kedar Grandhi reported the deal will ensure that Mallya's son, Sidhartha, is "not ousted for two years from the board of the Royal Challengers Bangalore cricket team, which is owned by Diageo" (IB TIMES, 2/26).
