Title success boosts Red Bull Racing’s finances

Red Bull Racing’s first Formula One constructors’ championship allowed the team to post a £2.8 million pre-tax profit last year, according to team principal Christian Horner.

The Austrian outfit has become the dominant force in F1 over the past two years and saw Sebastian Vettel add to the constructors’ championship by securing the drivers’ title in 2010. Red Bull Racing is wholly-owned by the Austrian energy drinks giant through its UK holding company Red Bull Technology. Horner revealed that the £2.8 million profit figure was 75% based on the F1 operation, with the remainder coming from other projects.

Vettel and team-mate Mark Webber’s exploits last year boosted the team’s prize money to about £56 million and also contributed to a rise in sponsorship income as Pepe Jeans, LG and forex broker FXDD joined the team’s portfolio. “The biggest increases for us, on the revenue side, were a 20% increase (in prize money) from Formula One Management and sponsorship,” said Horner, according to The Guardian.

Red Bull Racing looks on course to repeat its 2010 success this season with Vettel only one point away from retaining his title, as the team enjoys a huge 138 point lead in the constructors’ championship. Red Bull acquired the team from Ford in 2004 and has since ploughed considerable resources into developing it. Red Bull Racing’s accounts show that in 2009 it covered £96.9 million of the team’s £132 million costs but Horner said it now provides less than half. “The cost of Formula One to Red Bull is below 50% (of our expenditure) and is continuing to reduce,” he added.

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