Red Bull parent company quadrupled its Formula 1 team spend in 2016
|By Adam Cooper||Wednesday, September 27th 2017, 12:25 GMT|
Red Bull's parent company quadrupled its contribution to the Formula 1 team during 2016.
Red Bull GmbH provided £40.6million to Red Bull Racing last year, compared to a £10.1m payment during the previous season, according to its company accounts up to December 31 2016.
The squad's performance declined over the two campaigns before 2016; Red Bull went from constructors' world champion in 2013 to runner-up in '14 and a winless fourth the year after.
Red Bull also split with its previous title sponsor Infiniti at the end of 2015, although that was offset somewhat by a TAG Heuer branding deal for its Renault engines.
The team made a small profit overall last year, although that figure was down on its margin from 2015.
Red Bull Racing generated a turnover of £197m in 2016, nearly all of which was spent on its F1 programme.
It earned a combined £197,949,000 from outside sponsorship, prize money and bonuses from the F1 organisation, as well as payments from its ultimate parent company.
After taxes and expenses it registered a profit of just £385,000.
It increased its turnover from 2015 to '16 by £16.5m, but its profit the previous year was £2.14m.
Spending rose in 2016 in part due to the two grand prix victories for Max Verstappen and Daniel Ricciardo, and a return to second in the championship, which generated increased success bonuses for staff.
The team's true financial situation is hard to compare with rivals, because Red Bull Racing - in effect the race team - itself only employs 58 people.
Design, production and engineering is carried out by immediate parent company Red Bull Technology Group, which employs a further 700 people and also supplies services to Toro Rosso and outside projects such as its collaboration with Aston Martin on its Valkyrie hypercar.
RBT had a turnover of £247.7m in 2016 (including the RBR numbers outlined above), compared with £235.6m the previous year.
Its declared profit fell to £8.3m from £11.3m.