Red Bull Close to Deal with Jaguar

Austrian energy drink company Red Bull is poised to take over the Jaguar Formula One team after weeks of negotiations.

While the team and owners Ford refused to comment on the state of play, sources expected a deal to be concluded over the weekend before Monday evening's deadline for entries to the 2005 championship.

The Financial Times newspaper quoted an 'insider close to sale negotiations' as saying that the deal was effectively done however.

"We've accepted the offer; exchanged contracts -- all we have to do now is hand over the keys," the source said.

The newspaper added that while the sale would be for a token amount, Ford executives believed they had found a buyer with the resources to run the team viably for at least the required three-year period.

Ford, who have spent some $2 million a week in keeping the team afloat since the end of the season last month, would be liable for employees and other costs for up to three years under U.S. corporate rules.

Red Bull, a Jaguar sponsor owned by billionaire entrepreneur Dietrich Mateschitz, confirmed last week that an offer was on the table.

If all goes to plan, the takeover will secure the future of the 300-strong Milton Keynes-based team and end talk of other teams having to run three cars next year to make up the numbers on an otherwise depleted grid.

Minardi and Jordan, struggling for survival after Ford announced it was pulling out of Formula One and selling Jaguar and engine maker Cosworth, have both confirmed that they will be racing next year.

Jordan are expected to announce shortly an engine deal with Toyota, while there has also been talk of a major Chinese backer waiting in the wings.

Red Bull, who also sponsor the Swiss-based Sauber team and were involved with now-defunct Arrows, have been involved in Formula One and motor racing for years as well as a range of action sports.

The company backed Austrian F1 rookie Christian Klien at Jaguar this year as well as Italy's Formula 3000 champion Vitantonio Liuzzi.

But Mateschitz has long dreamed of running an all-American team, running a driver search programme with former Indianapolis 500 winner Danny Sullivan, and a takeover is likely to be a boost for young U.S. drivers.

This year's Champ Car rookie of the year, American AJ Allmendinger, is backed by Red Bull.