16/10/2019
NEWS STORY
As the sport seeks to agree on the rules package being proposed for 2021, which includes a budget cap in a bid to halt the current spending war and level the playing field, it has been revealed that last year, in its efforts to take on Mercedes and Ferrari, Red Bull spent £304.2m, more than in any previous season.
Up 8.9% on 2017, the budget included the development of this year's car, which was the first non-Mercedes to win this season and, along with new engine partner, Honda, is currently third in the standings, 289 points adrift of Mercedes and 110 behind Ferrari.
Having won three races in 2017, last year's four wins meant a higher performance bonus for its drivers, however the majority of the team's spending went on staff and research and development.
According to the Independent, staff spending was up 1.8% to £118.1m, as the team took on 16 new employees, bringing the headcount up to 809.
According to the accounts, team boss, Christian Horner is on £3.4m.
However staff spending wasn't entirely down to F1, the accounts stating that while "the principal activity of the group is the design, development and manufacture of Formula One racing cars", the company also "applies high-end engineering know-how outside of Formula One", which includes collaborating with Aston Martin on its hypercar and developing a range of yachts with Sunseeker.
After paying its £304.2m in costs, and with £314m in revenue, much of this coming from prize money, sponsors and Red Bull itself, Red Bull Technology was left with a pre-tax profit of around £10m.
In total, Red Bull, the energy drink manufacturer, which ultimately owns Red Bull Technology, paid £104.2m last year, up 10.6% on 2017.
However, as talks on the direction the sport is to take, and with a question mark concerning the futures of three current teams, Red Bull's accounts make clear that "changes in regulations by the FIA can have a material impact on a team's competitive capabilities with significant commercial consequences".
Ominously, adding that "the company is mindful that under the new commercial and regulatory framework, post-2020, Formula One needs to remain attractive for Red Bull's continued support."