Cable Forum - Virgin in Talks to buy Honda F1

Quote:

Honda Racing have confirmed that Richard Branson's Virgin Group is in negotiations to buy the Formula One team.

With the start of the 2009 season just over five weeks away, a Honda spokesman said Virgin were among several potential buyers for the Brackley-based outfit.

"We are negotiating with several potential buyers for the racing team, among which is the Virgin Group," the spokesman said, declining to name the other interested parties.

The Virgin Group had earlier declined to comment, a spokeswoman saying they were "constantly named in speculation and rumour".

There has also been the suggestion of a management buyout, led by Honda Racing's chief executive Nick Fry.

A decision by the Japanese manufacturer on the future of the team is likely by the end of the month.

"We are doggedly pursuing negotiations in time for the start of the F1 season in March," said another Honda official who declined to be named.

"We are intensely discussing options including finding a buyer," he added, admitting that the team may still have to be disbanded if the negotiations fail.

Honda announced at the start of December that they were putting the team on the market following a sharp decline in car sales.

The team employs around 700 people, with the decision also placing the F1 career of driver Jenson Button in jeopardy.
Prior involvement

Branson has had prior involvement in the sport, his Virgin Mobile company sponsoring the Jordan team in 2002.

Virgin Atlantic Japan have also sponsored Japanese driver Takuma Sato for the past four years.

Sato drove for Jordan in 2002 and also raced for Honda - when the team was owned by British American Tobacco - in 2004 and 2005.

Branson is also a friend and business associate of Adrian Reynard, co-founder of the team in 1998.

Honda have struggled in recent seasons and despite a budget estimated at around $300million last year, they finished only ninth out of 10 teams in the Constructors' Championship.

The sport has moved to cuts costs in the wake of Honda's announcement, with a landmark agreement between teams and the FIA announced late last year.

Max Mosley wants to go even further for 2010, the FIA president recently saying that independent teams should be able to compete on a budget of around Ã¢â€šÂ¬50m ($63.23m).

Source - http://www.skysports.com/story/0,195...938390,00.html

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