Exclusive: Investment from Russia gives Virgin added clout

VIRGIN RACING have moved a step closer to realising their ambitions of challenging Formula 1's established elite after welcoming significant investment from a Russian motor company –but team principal John Booth has vowed the team will not be deserting their Yorkshire roots.
By The Newsroom
Published 12th Nov 2010, 08:12 BST
Updated 12th Nov 2010, 10:48 BST

Marussia Motors have significantly increased their stake in the Formula 1 rookies for the next four years as the team Booth started in the humble surroundings of his own Rotherham garage continue their bid to become a serious contender in world motor sport's richest playground.

Already bolstered by the increased exposure and finances brought by Sir Richard Branson's Virgin empire, the team will be known as Marussia Virgin Racing from 2011 to 2014 after the Moscow-based sportscar manufacturer joined Virgin and the Lloyds Banking Group in assuming a healthy stake in Booth's company. The team's new car for 2011 will be launched in the Russian capital but the partnership will not harm the county's Formula 1 links.

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Click here to learn more about the Russians and the target they have set John Booth >>

Booth oversaw the extension of the team's Dinnington base in Rotherham earlier this year and last night confirmed that the team – which consists of a large number of Yorkshire-based engineers – would be retaining its strong White Rose heritage.

"Absolutely we're staying in Yorkshire. The team and its head office will continue to be located in its purpose-built facility in Dinnington," Booth told the Yorkshire Post from Abu Dhabi, ahead of the Formula 1 season finale where four drivers, including Britain's Lewis Hamilton, are vying for the title.

"This is a significant investment, not a takeover, that will improve our financial firepower. The board structure stays pretty much the same and the management stays the same. A takeover is not what they are looking for, they are looking to help the team grow. It makes us secure for four years."

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Lloyds are believed to have contributed 10m to Virgin Racing for their debut season, and while Marussia have not disclosed their full financial interest in Virgin Racing, it is understood the team's budget – which this year was 40m and the lowest on the grid – will improve for next season.

As part of the deal Booth will continue as team principal, but has been given two years to steer Virgin towards the front of the grid.

Related topics:Formula 1ExclusiveLloyds Banking GroupRussiaRichard Branson