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F1 success helps boost Red Bull profits

Sebastian Vettel's F1 championship success helped to boost RBR parent company Red Bull's bank balance in 2010.
Red Bull reaped the financial reward of finally ascending to the pinnacle of F1 success in 2010, reporting a pre-tax profit after one of the most closely-fought championship campaigns of all time.

Sebastian Vettel's exciting theft of the individual title from under the noses of Ferrari's Fernando Alonso and Red Bull Racing team-mate Mark Webber coincided with the Milton Keynes equipe's maiden championship success as a constructor and, according to team principal Christian Horner, helped the Austrian-based drinks brand post a £2.8m pre-tax profit, with 75 per cent of that figure arising from F1 activities.

"The biggest increases for us, on the revenue side, were a 20 per cent increase [in prize money] from Formula One Management and sponsorship," team principal Christian Horner told Britain's Guardian newspaper,

Vettel's title success and the results accrued throughout the season by the young German and team-mate Webber - who led the standings for much of the second half of the season - were rewarded with approximately £56m in prize money, which was added to greater income from sponsors - including Pepe Jeans, electronics firm LG and forex broker FXDD - wishing to be associated with not only a successful team, but also one of the paddock's larger than life inhabitants.

"Control of costs, combined with the increase in external revenues, meant that Red Bull Racing has become more successful at a lower cost to the group," Horner explained, admitting that paying bonuses to the staff for their part in the success had pushed its outgoings up slightly, but pointing out that Red Bull's financial investment into the team had dropped significantly over the years.

"The cost of F1 to Red Bull is below 50 per cent [of our expenditure] and is continuing to reduce," he noted, referring to the £96.9m - of an estimated total of £132m - that it cost to run the team in 2009. Red Bull is believed to have earned around €1bn, after tax, on the sale of approximately 4bn cans of its energy drink last year. Having based its marketing strategy on the support of extreme supports, amongst other things, it is reckoned that Red Bull received the equivalent of £219.9m worth of advertising exposure from its F1 activities in 2010 alone - almost double what it earned the previous year, when Vettel and Webber first seriously began to mark the team out as a frontrunner.

Vettel currently stands a single point from repeating as champion in 2011, with RBR comfortably 138 points clear of its main rival in the constructors' standings with five races remaining.



Related Pictures

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Sebastian Vettel (GER), Red Bull Racing
Celebration, Sebastian Vettel (GER), Red Bull Racing, RB6 race winner and 2010 champion
Celebration, Sebastian Vettel (GER), Red Bull Racing, RB6 race winner and 2010 champion, Dietrich Mateschitz (AUT), Owner of Red Bull (Red Bull Racing)
Race, Mark Webber (AUS), Red Bull Racing, RB6
Race, Sebastian Vettel (GER), Red Bull Racing, RB6 race winner and 2010 Champion
Sunday, Red Bull Racing Family Team, Mark Webber (AUS), Red Bull Racing, RB6 and Sebastian Vettel (GER), Red Bull Racing, RB6
Qualifying, Mark Webber (AUS), Red Bull Racing, RB6
20.05.2011- Sebastian Vettel (GER), Red Bull Racing, RB7
27.11.2016 - Race, 2nd place Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid and Champion 2016 and 3rd place Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, 2nd place Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid and Champion 2016, Lewis Hamilton (GBR) Mercedes AMG F1 W07 Hybrid race winner and 3rd place Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, 2nd place Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid and Champion 2016 and 3rd place Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, 2nd place Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid and Champion 2016 and 3rd place Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, 3rd place Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, 2nd place Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid and Champion 2016 and 3rd place Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, Start of the race, Daniel Ricciardo (AUS) Red Bull Racing RB12 and Sebastian Vettel (GER) Scuderia Ferrari SF16-H and Kimi Raikkonen (FIN) Scuderia Ferrari SF16-H
27.11.2016 - Race, Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, Sebastian Vettel (GER) Scuderia Ferrari SF16-H
27.11.2016 - Race, Max Verstappen (NED) Red Bull Racing RB12

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Tommo - Unregistered

September 29, 2011 12:39 AM

And to think way back in the 80s they started sponsorship with Carlos Sainz. How far they have come. Not bad for a soft driks company hey Lewis Hamilton???



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