By Phil Huff
February 20 2009

Formula One boss Bernie Ecclestone claims that Virgin chief Richard Branson is keen to buy the Honda Racing F1 team, and the Virgin bid has got his backing. "We would welcome them with open arms," Ecclestone told the Mirror.

"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."

The last minute Virgin bid would come at the expense of the management buyout being led by Nick Fry and four of his colleagues. "I know about the management buyout," explained Ecclestone, "but if Virgin are interested and people say they want the same management, then that's great too."

The Virgin Group were the first party to show interest in the team, even before it was officially put up for sale. We understand that, despite Fry & co working on their own MBO, Honda in Japan pushed Virgin to resubmit their bid following the announcement of Honda's exit from the sport.

This, seemingly, has not gone down well with at least one member of the senior team at Brackley.

Virgin have had a brief dabbling with F1 in the past, with their Virgin Mobile brand being a small sponsor at Jordan in 2002. Virgin Atlantic Japan have also sponsored Takuma Sato for a number of years.

The choice of the MBO or the Virgin bid has been put to the Honda Motor Co board, with a decision expected imminently. The decision is between a low capital bid by Fry & Co that, whilst perhaps lacking long term financing plans, does have the benefit of experience, or the Virgin bid led by a highly capitalised group who, we understand, would be keen to retain the current management structure initially, although operating under the Virgin Group.

A Virgin purchase might not see the end of the 'green' livery on the car as Branson is setting up a global science and technology prize - The Virgin Earth Challenge - offering $25m to whoever is able to demonstrate a commercially viable design that will result in the net removal atmospheric greenhouse gases each year for at least ten years, and without any harmful side effects.

There is also a third option of simply closing the team down and selling off the assets. Force India's Vijay Mallya has expressed interest in whatever's left.