Bernie Ecclestone’s Open Arms - For His Slice of Cash!
Bernie Ecclestone has given Sir Richard Branson’s 11th hour Honda rescue mission the thumbs up.
The most powerful figure in Formula One is ready to roll out the red carpet (Shouldn’t it by multi-color in honor of the British pound - ed) for the entrepreneur and his £7billion Virgin Group.
“We would welcome them with open arms,” said Ecclestone. “He’s exactly the type of person we would want in the sport.
“Sir Richard Branson is a wonderful guy. I met him at Monza last year and we got on very well.”
Branson’s offer could scupper a planned management buyout led by the Honda team’s chief executive Nick Fry, principal Ross Brawn and three other senior Honda Racing executives. “I know about the management buyout,” said Ecclestone. “But if Virgin are interested and people say they want the same management, then that’s great too.”
Branson’s people approached the Honda board directly to push through a deal.
With time running out before the first race in Australia on March 29, they need the nod within a week.
Branson has flirted with Grand Prix involvement for a decade, attending races in Italy last year and Monaco several years previously. He was also a minor sponsor of the Jordan team in 2002.
But the final decision on the Brackley outfit’s future now rests with the Honda board in Tokyo.
They face a choice between Branson, his PR clout and financial muscle, and the management bid of Fry and Brawn, who wield extensive experience in the sport - but less capital. With battle lines drawn, a question mark hangs over how Brawn and Fry could work with the Virgin hierarchy if Branson is successful.
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Branson is a savvy businessman, his 11th hour bid may see him grab what is essentially a turn-key operation for a bargain price. I find it interesting that he has refered to F1 involvement, in the past, as a black hole to pour money into. In this new world of controlled costs he may see F1 as a very cost effective method of promotion.
At the same time, Honda HQ are announcing that shutting the whole operation down is still an option they would pursue.
Who knows what will happen? Honda bites the dust or another billionaire independent? The first race is weeks away so this had all better come together quick..
I’m guessing it happens, with Fry & Co still in place to run the operation and with full cooperation from Honda. (not to include engines)
How can a “Virgin” possibly survive encounters with members of the “Pirhana Club”?
Good luck Richard, slap an extra padlock or two on that chastity belt and keep your finances to yourself.
George - “How can a “Virgin” possibly survive encounters with members of the “Pirhana Club”?”
To say nothing of Spanky Mosley’s little club.
I find the latest story at autosport interesting.
Honda seem to have found themselves in the same position Jaguar did when they pulled the plug. The reason Red Bull got the nod was that they had the financial clout to see the team survive for at least four years. U.S law leaves the seller still liable for employee’s being jobless if the operation were to fold or be broken up after such a sale.
I’m guessing that Honda wont sell to anybody as there are contractual commitments (not the least of which is a multi $M to the dear boy) that they cant just walk away from.
The whole “buy the team for a pound” reporting is quite misleading.
BTW, I’m still leaning towards this whole deal falling apart. It’s so late in the day, the season starts in a few week, they have not got a Merc engine deal in place & the car can’t be tested as it nowhere near ready…let alone with a lump bolted to the back.
BTW, if I were Branson, I would be running straight to Mercedes for more than engines. get hold of their KERS, make Honda buyout Button & snag either Paffet or the experienced de la Rossa for the first year as the team rebuilds.
What would you prefer, Senna & his bucks or Paffet. Merc contacted Di Rista is the other “deserves a shot at F1″ hot shoe.
It’s not what I would prefer, and just as obviously it’s not what Petrobras (Spell?) prefers since they have categorically said - No Mas! Unless Bruno can convince some other “Sugar Daddy” his F1 ambitions for this year are toast.
Actually, let me rethink that.
I’d prefer Paffet. He’s proved himself both as a test driver and in the DTM series to be very capable at any level.
What I find amazing is that Honda is still trying to preserve the jobs of the 700 team employees. I guarantee that every single buyer would want to cut the staffing in half including getting rid of Jenson, and expect Honda to pick up the residual costs.
I think that’s the rub in the negotiations. It would take a hell of a lot more than $50 mill to fully fund a 700 person team organization for a full season. Jenson alone would suck up $24 mill this year, but I’m sure he’d renegotiate a lower contract for the chance to keep his face in the game.
The Dear Boy renegotiating/negotiating contracts?!
Haven’t we been down this sordid road before. With ugly results.
If Button wants to stay in F1 he had better lower his price with the new owners, otherwise he will be out of F1 with no return.
I’m still of the belief that Honda has too many strings attached to this sale & that the whole purchase may flounder. Honda are going to have to make even more concessions for the deal to progress.
In the bad old days when Bernie was flush with cash there’s no doubt he would have scooped up the team and found a sponsor, if only to break up the unanimity of of FOTA. And he still may do that.
I also think Honda are putting on a full court press to justify shutting down the team. the old “we tried everything” line but it just didn’t work out. Sayonnara.