Red Bull Racing spent £237m on 2019 Formula 1 season

Red Bull Racing’s spending fell slightly in 2019 compared to the previous year, but the Formula 1 team still faces a difficult task in scaling back to meet the FIA budget cap that will be imposed in 2021.

Red Bull Racing spent £237m on 2019 Formula 1 season
Listen to this article

Newly released accounts reveal that the Milton Keynes team spent £237.3m last year, a fall of some £2.3m compared to the 2018 figure of £239.6m. The modest drop followed rises of £33.7m in 2017 and £12.9m in 2018.

The numbers reflect the fact last year the team switched from being a paying Renault Sport customer to becoming the works team of Honda, with the change in the commercial terms of its power unit deal in effect cancelling out the inevitable trend in rising expenditure in other areas.

Nevertheless, like rivals Mercedes and Ferrari, RBR will have to undergo significant restructuring in the coming months as it prepares for the move to the new FIA financial regulations and the budget cap in 2021.

At the current exchange rate, the budget cap of $145m equates to around £113m, less than half RBR’s current spend, although there are many exclusions.

RBR’s overall income remained stable in 2019, rising only slightly from £245.1m to £245.4m, with the team retaining third place in the world championship in 2018 and thus earning a similar amount from the F1 organisation. It declared a modest profit of £618K, down from £923K in 2018.

Assessing the team’s figures is made more complicated by RBR’s relationship with its immediate parent company Red Bull Technology (RBT), which employs the staff associated with the design and manufacturing of the car.

However, team boss Christian Horner has always insisted that the RBR numbers reflect the true cost of running the actual F1 team, with RBT treated as a supplier.

RBT also deals with AlphaTauri and does business outside F1, notably with Aston Martin on the Valkyrie project.

Read Also:

RBT’s overall figures, which include those for RBR as outlined above, show that income rose from £314.0m in 2018 to £337.6m in 2019, while costs rose from £265.9m to £278.3m. RBT’s profit fell from £10.1m in 2018 to £8.0m in 2019.

The financial contribution paid by RBT’s Austrian parent Red Bull GmbH, which represents the top-up of outside sponsorship and F1 income, was reduced from £68.7m in 2018 to £63.0m last year.

The RBT staff numbers show a continuing steady rise, with the last four years indicating a progression of 758, 793, 809 and 866 up to 2019, again reflecting the challenge that the organisation faces in meeting the new budget cap. RBR itself officially employs only 59 people.

In his notes to the accounts, signed before the budget cap was lowered after the COVID-19 crisis hit, Horner stressed the need to keep a lid on spending.

“The directors consider race performance, championship performance and a controlled cost base to be principal key performance indicators to assess progress towards strategic goals,” he wrote.

“Costs remain under control and the team is mindful of adaptions necessary for new financial regulations coming into force for 2021.”

shares
comments

Related video

Inside F1’s tech war: New Ferrari updates explained via 3D model
Previous article

Inside F1’s tech war: New Ferrari updates explained via 3D model

Next article

Perez has made "progress" in sorting Formula 1 future

Perez has made "progress" in sorting Formula 1 future
The relaxed home life that helps F1’s Kevin Magnussen to deliver Prime

The relaxed home life that helps F1’s Kevin Magnussen to deliver

The unrelenting grasp of the tax man prompts most racing drivers to move to the likes of Monaco, Switzerland or Dubai. But, as Oleg Karpov found out, Kevin Magnussen is quite happy where he is, thank you very much – at home, with his family, in Denmark

How Perez has shown what many F1 drivers need from the 2022 season run-in Prime

How Perez has shown what many F1 drivers need from the 2022 season run-in

OPINION: Sergio Perez’s Singapore triumph arrested a big decline in his Formula 1 performances against Max Verstappen at Red Bull since his Monaco win. He now needs to maintain his form to the season’s end, while others are also seeking a change in fortunes.

How the FIA should punish any breaches of the F1 cost cap Prime

How the FIA should punish any breaches of the F1 cost cap

OPINION: On Wednesday, the FIA will issue F1 teams with compliance certificates if they stuck to the 2021 budget cap. But amid rumours of overspending, the governing body must set a critical precedent. It needs to carefully pick between revisiting the bitterness of Abu Dhabi, a contradictory punishment and ensuring parity for the rest of the ground-effect era

Formula 1
Oct 4, 2022
Singapore Grand Prix Driver Ratings 2022 Prime

Singapore Grand Prix Driver Ratings 2022

A testing return to the Singapore Grand Prix in tricky conditions created plenty of hazards and mistakes for the Formula 1 drivers to fall into. That partly explains a number of low scores, including from a handful of high profile runners, allowing others to take a starring role under the floodlights

Formula 1
Oct 3, 2022
The two key contributors to Leclerc's defeat to Perez in Singapore Prime

The two key contributors to Leclerc's defeat to Perez in Singapore

In a marathon Formula 1 Singapore Grand Prix, Sergio Perez’s victory was only assured hours after the race due to a stewards investigation. Throughout the contest the Red Bull driver impressively held off Ferrari’s Charles Leclerc in changing conditions to see the Mexican pull out enough of an advantage to negate his post-race penalty

Formula 1
Oct 3, 2022
Why is Oscar Piastri F1's most sought-after rookie? Prime

Why is Oscar Piastri F1's most sought-after rookie?

The Australian rising star is fast, consistent, confident, adaptable and has shown excellent racecraft, but there’s already a taint to his reputation. That hasn’t stopped him becoming the hottest property in this year’s F1 driver market and why McLaren moved fast to snap up the 21-year-old

Formula 1
Sep 30, 2022
The unintended benefit that F1's new engine rules era will deliver Prime

The unintended benefit that F1's new engine rules era will deliver

Formula 1's incoming engine rules shake-up has multiple targets. But it may also solve what has been a bone of contention since the hybrids arrived in 2014. The new plan will allow the series to pump up the volume

Formula 1
Sep 29, 2022
How de Vries made himself impossible to ignore for a belated F1 chance Prime

How de Vries made himself impossible to ignore for a belated F1 chance

Nyck de Vries appeared to have missed his opportunity to break into Formula 1 as he was passed over for more exciting talents who have now become frontrunners and title fighters. But after catching the eye outside of the F1 sphere, before his stunning impromptu grand prix debut in Italy, will it lead to a delayed full-time race seat?

Formula 1
Sep 29, 2022