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Red Bull F1 team records increased turnover of £385m in 2022

Red Bull Technology Ltd, the company behind the world championship-winning Red Bull Racing Formula 1 team, has reported increased turnover and profits for its successful 2022 season.

Max Verstappen, Red Bull Racing RB18, Sergio Perez, Red Bull Racing RB18

Max Verstappen, Red Bull Racing RB18, Sergio Perez, Red Bull Racing RB18

Mark Sutton / Motorsport Images

The organisation has a different business model compared to other teams, with the RBT group acting as the parent company of Red Bull Racing, and the latter officially employing just 50 people.

Matters are further complicated by the fact Red Bull Technology (RBT) income stream also includes payment for work undertaken for and parts supplied to AlphaTauri.

In addition, there are four other distinct but related companies operating on the Milton Keynes campus, including two involved in current and future F1 powertrain projects.

RBT declared a turnover of £385.6m, an increase of 13% on the previous year’s figure of £341.9m, while profit after tax rose from £8.6m to £13.4m.

The figures for Red Bull Racing are included in the above group totals. Turnover was £278m, a boost of almost £40m from 2021. Profit after tax was £2m, slightly up on the previous total of £1.3m.

Much of the extra income came the F1 prize fund. While Red Bull was runner-up in the 2021 constructors’ championship, and thus was the second team in line after winner Mercedes in the 2022 prize fund pecking order, the overall pie was bigger.

The team also generated higher sponsorship income, with Oracle joining as title partner at the start of the 2022 season.

The team notes that production costs were lower due to “careful management of spend, strong relative performance and reliability, and limited race event accident damage.”

RBT also says administrative expenses were up in part due to the $7m fine levied by the FIA in October 2022 for a breach of the previous year’s cost cap.

The Red Bull logo

The Red Bull logo

Photo by: Lionel Ng / Motorsport Images

Intriguingly, the auditors’ notes in the accounts – which are usually a standard cut and paste – specifically address the cost cap breach.

Ernst & Young say that it investigated the breach and the “circumstances and reasons” for it, spoke both to Red Bull management and directly to the FIA, and confirmed that the case was closed.

Staff bonuses related to Max Verstappen’s championship success, and the 2022 constructors’ title victory, added to costs, while the drivers also earned bigger bonuses.

RBT had an overall headcount of 736, including the previously noted 50 personnel who are attached directly to RBR.

That figure was down compared to the 773 the company declared for 2021 and the 934 listed for 2020, a sign of the cost cap biting and triggering a reduction in headcount and redeployment to sister companies.

Meanwhile, the powertrain division has now been split into two distinct companies in order to differentiate between servicing the current Honda PUs that will be used until 2025, and the creation of the new Ford-backed engine that will race in 2026.

Until the middle of last year both projects ran under the umbrella of the original Red Bull Powertrains Ltd (RBP). It is a direct subsidiary of Red Bull GmbH, and thus not part of the RBT/RBR group, despite being on the same Milton Keynes site.

In May 2022, a new sister company Red Bull Powertrains 2026 Ltd was formed to focus on the future PU project, and again it is a direct subsidiary of the Austrian parent company.

That split was necessary to make fully clear the division between the Honda and Ford projects, as power units are now subject to the FIA financial regulations.

Christian Horner, Team Principal, Red Bull Racing

Christian Horner, Team Principal, Red Bull Racing

Photo by: Steven Tee / Motorsport Images

For what it calls the “hybrid” year of 2022, with both projects under its umbrella for the first six months, RBP generated turnover of £184.5m, reflecting the huge investment required, and a profit of £5.8m.

For the period from May-December the new RBP 2026 organisation declared a turnover of £59.4m, and the company made a loss after tax of £8m.

RBP had an average headcount for the year of 439, with 221 in R&D, 121 in production, and 97 in admin and support.

Meanwhile, RBP 2026 an average headcount for the second half of 2022 of 166, with 112 in R&D, 39 in production, and 15 in admin and support. The overall figure is known to have risen significantly over the course of 2023 as the company has been ramped up.

In addition, January 2022 saw the formation of Red Bull Advanced Technologies Ltd (RBAT), which is also not part of the RBT/RBR group, and is another direct subsidiary of Red Bull GmbH.

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Intended to utilise F1 technology outside the series, and use resources that are outside the FIA cost cap, its highest profile project is the RB17 hypercar. The company said it was also involved in “hydrogen-powered racing cars, racing motorbikes, elite racing bicycles, high performance sailing boats and even hot air balloons.”

RBAT declared a turnover of £6.1m, and had a headcount of 70, with 21 in production, and 49 in R&D.

Yet another company, Red Bull Advanced Services Ltd, supplies support to all of the aforementioned entities. Formed in May 2022, it employs 31 people and had a turnover of £3.6m.

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