Honda Sells F1 Team to Ross Brawn: Automaker cuts losses at $200m

Honda Motor Company slipped out of Formula 1 this week, selling its factory team to Ross Brawn, who had been the Honda F1 Racing team principal. The deal cost the company some $200mUS, including fixed assets (leased land, buildings and equipment), a year's salary for the 700 staffers, plus the writing off of the debts owed Honda Motor Co. by the British-based racing team.

In addition, Honda paid Brawn GP the amount of money it would have had to pay Brawn and lead driver Jenson Button to cancel their contracts, both held by the automaker. A further $40mUS has been deposited with Brawn GP to pay back television revenues owed Honda F1 by Bernie Ecclestone's Formula One Management.

This deal has been long in the making, perhaps because Honda was aware that one of Brawn's primary backers might be Australian Internet gaming outfit Bwin Interactive Entertainment. Internet gaming is not legal in every country where F1 races.