Dennis: Virgin deal sign of F1's strength

That is the view of McLaren chairman Ron Dennis, who thinks that despite the worldwide economic turmoil, which has seen some sponsors choose to quit the sport, Virgin's decision to support Brawn GP is evidence that F1 continues to be strong.

"Sir Richard Branson is a hugely successful global businessman, and it's therefore excellent news for Formula 1 that he and the Virgin Group have entered the sport," said Dennis shortly after the deal was announced in Australia on Sunday.

"But their entry shouldn't be seen as in some way bucking a trend. No, despite the global economic downturn, Formula 1's sponsorship situation remains remarkably robust.

"Yes, both ING [Renault] and RBS [Williams] have recently signalled their intention to exit the sport, but that says more about the situation facing those two troubled financial institutions than it does about Formula 1 - just as AIG's recent decision to end its sponsorship of Manchester United says more about the situation facing that troubled financial institution than it does about Premier League football."

Dennis added that moves to cut costs in F1, which played a part in Branson's decision to enter F1, were pointing towards a positive future for the team.

"Under the umbrella of FOTA, the teams have adopted voluntary cost-cutting measures this year and have further pledged to reduce costs by 50 per cent next year," he said.

"We firmly believe that this approach will lead to a sustainable Formula 1 which will nonetheless retain the unique DNA and investability that have led all the companies [recently new to F1], including the Virgin Group, as well as many dozens of other sponsors in existing relationships with Formula 1 teams, to invest in Formula 1's unique DNA and thereby gain enormous returns on those investments."