Heat oil in large Dutch oven over medium-low heat. Add onion and garlic; saute 12 minutes or until golden. Add meat; brown 5 minutes or until no longer pink, breaking up with a wooden spoon.
Add wine, tomatoes, tomato paste, basil, bay leaf, sugar, salt and pepper, scraping up any browned bits from bottom of pot with a wooden spoon. Bring to bare simmer; cook 1 hour or until thickened.
Remove bay leaf and discard. The sauce can be made ahead and refrigerated, covered, for up to 3 days or frozen, tightly sealed, for up to 3 months. Makes about 6 cups (enough for 2 pounds of pasta or 8 servings).