Virgin will likely not extend its contract with Brawn

Richard Branson hinted that his company, Virgin Group, will not become the official sponsor of Brawn GP next year.

Virgin initially signed a sponsorship deal at the beginning of the season, with the possibility of expanding its involvement during 2009 or at the start of the next season.

However, Brawn’s recent success has driven up prices for a big deal, and Branson would be quite reluctant to spend more than necessary. The famous businessman believes it is unlikely that his company will do more for Brawn.

« We secured a cheap contract for this year, but I think next year, the price will be astronomical. We need to look into another contract with a small team, » said Branson on BBC Radio 5 Live.

Their amount has gone from almost nothing to 50 million pounds (nearly 60 million euros) per year and we are delighted for them. We had a fantastic year with them.

Branson was a guest of Red Bull Racing at the Monaco Grand Prix. His company may have established ties with the Milton Keynes team.

Regarding the threat from FOTA, which wishes to organize a new championship, Branson stated: “I think it would be very regrettable. Both parties need to sit down and find a compromise.”

« There are good arguments on both sides. Certainly, the baseline cost of Formula 1 needs to be reduced, and most teams seem to agree. The difference between the two parties must be resolved. »

« If the teams really think it is in their interest to split, and if they are allowed to do so, then maybe yes! »