Honda's Formula One Fate Getting Closer

Reuters UK reported today on some additional progress on the ultimate fate of the Honda Formula One team. British entrepreneur Richard Branson wants to take over Honda's Formula One team, the sport's commercial supremo Bernie Ecclestone told Reuters on Thursday.

As you may or may not know, Mr. Branson is associated with the Branson Virgin Group. He is not new to formula one racing as his Virgin Mobile company was a sponsor of the Jordan formula one team in 2002. His other ties with formula one also include the Japanese driver Takuma Sato who has been sponsored by Virgin Atlantic Japan for the past four years. Another tie in is that Mr. Branson is a personal friend of Adrian Reynard, co-founder of the BAR team that became Honda in 2006.

One of the open questions is why Honda would be more interested in a sale to Branson rather than the executive buyout which is on the table? It will be interesting to get the news next week as the deal may go through as early as next Monday.

The new owners, who ever they may be, will be looking at a 60 million dollar per year cost. While this sounds like an astronomical number, it is much better than the 300 million Honda spent, and still only finished ninth in the standings. I won't tell you how much Ferrari spent in order to be first.

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