Red Bull has had an unbelievable rise since 2022. However, the seeds of the success were sown back in 2021 when Max Verstappen ended the streak of Lewis Hamilton. Initially, the Milton Keynes team did not have a great start during the cost cap era. They had to pay a penalty of $7 million and a 10% reduction of wind tunnel time for breaching the cost cap in 2021. But the Austrian team turned things around with their newfound dominance in the F1 grid.
They had to wait for eight years to win their fifth title. From 2010 to 2013, Red Bull enjoyed hegemony, with Sebastian Vettel steering the wheel of their car. Now, in 2023, Christian Horner’s team has not only won two titles back to back. But also they are making a lot of money and profit. However, the credit for their financial success goes to Red Bull Technology Ltd.
Profits Increased For The Red Bull F1 Team
RBT saw increased profit in 2022 as Red Bull’s F1 team dominated the last season. Moreover, Red Bull Technology is the parent company of Red Bull Racing (RBR). RBR only employed 50 people in their team. Moreover, RBT’s business model is pretty unique. The income of Red Bull Technology comes from the payments for their work with Alpha Tauri. Also, a couple of related companies out of four are involved in projects for F1 Powertrains. Moreover, Red Bull Technology reported a turnover of 385.6 million pounds, and post-tax profits are rising to 13.4 million pounds. In the previous year, it was 341.9 million pounds in turnover with 8.6 million pounds post-tax profits.
Hence, there has been a 13% increase in 2022. On top of that, Red Bull Racing’s income is a turnover of 278 million pounds with 2.0 million pounds, up from 1.3 million pounds in 2021. RBR has gained almost 40 million pounds more in 2022 than the previous year. Moreover, increased sponsorship and prize funds are the reason for extra income, along with Oracle, the title partner since 2022. The Red Bull’s F1 team lowered the cost with careful spending, reliability, performance, and minimal damages during races. However, the cost cap penalty of $7 million in 2022 is responsible for the rise in administrative expenses.
The Austrian Team Is Enjoying Incredible Success Since 2022
From 2014 to 2021, Red Bull struggled as Mercedes ruled the F1 stage in every way. The German team won back-to-back eight titles in the turbo-hybrid era. They made the most profits than other teams on the grid, and they were on the top of the F1 world. However, things changed drastically when the new era of cost caps began. Mercedes lost their grip on the title and somehow lost their winning ways. The German team managed to win a single race last season, and they have not won any Grand Prix this year yet.
On the other hand, the Austrian team has discovered unprecedented ways of dominating the grid since last year. They won 17 races in 2022 and have won 16 already in 2023, with five more to go. Moreover, it is the genius of Max Verstappen and Adrian Newey that made the difference for Red Bull. Newey designed the fastest car, and Max won back-to-back three Driver’s Championships. Moreover, Max Verstappen won 15 races in 2022 and 14 already this year, with five races still remaining. Hence, the Dutch driver, the designer, and the engine partner, Honda, have been immensely successful for the Austrian team.