Hey there racing fan, have you ever wondered who actually owns and finances Red Bull‘s incredibly successful Formula One racing team? With their recent dominance in F1, I‘ve been getting this question a lot lately. As an investment analyst who has followed Red Bull‘s business and motorsports efforts for years, let me walk you through the details so you can really understand who controls this international racing juggernaut.
Red Bull GmbH Holds a Controlling Stake in the F1 Team
The key thing to know is that Red Bull‘s F1 team is owned by Red Bull GmbH, the Austrian company that sells the iconic energy drink worldwide. Red Bull GmbH holds a 100% stake in the racing team, covers its substantial budget, and directs its strategic direction.
Red Bull GmbH generated over $9 billion in revenue in 2021, meaning it possesses the tremendous resources needed to fund such an elite racing operation. The company also owns football clubs, hockey teams, racecars, and extreme sports athletes to promote the Red Bull brand.
But Majority Ownership Lies with the Secretive Yoovidhya Family
Here‘s the twist though – Red Bull GmbH itself is majority owned by the heirs of Thai businessman Chaleo Yoovidhya, who partnered with Dietrich Mateschitz to found Red Bull in the 1980s.
Chaleo Yoovidhya actually invented the prototype for Red Bull in the 1970s and held a 51% stake in the company until he passed away in 2012. His son Chalerm then inherited the family‘s controlling 51% ownership, making the Yoovidhyas billionaires with a net worth over $24 billion.
However, the Yoovidhyas prefer to stay out of the spotlight and let Mateschitz serve as the public face of Red Bull. They maintain a very private, low-profile existence in Thailand
While Mateschitz Was the Visionary Public Figurehead
On the other side, Austrian billionaire Dietrich Mateschitz was the consummate marketing genius who built Red Bull into a global phenomenon. He handled day-to-day operations and constructed the company‘s image through audacious promotional campaigns.
Mateschitz also founded Red Bull Racing in 2004 to boost the brand‘s visibility even further. Sadly, he passed away in October 2022 at age 78, leaving behind a 49% stake in Red Bull GmbH and a fortune estimated at $27.4 billion.
With his relentless vision, Mateschitz took a tiny Thai energy drink and transformed it into the world‘s #1 selling energy drink, selling over 7 billion cans a year.
Red Bull Racing‘s Operations and Divisions
Now that we‘ve covered ownership, let‘s look at how Red Bull Racing operates. The team is run out of Red Bull GmbH‘s Formula One headquarters in Milton Keynes, UK.
Red Bull Racing‘s main entry races as Oracle Red Bull Racing and uses Honda power units. Its junior team Scuderia AlphaTauri, formerly Toro Rosso, develops young talent like Max Verstappen.
When Honda withdrew from F1 after 2021, Red Bull Advanced Technologies was formed to design replacement Red Bull Powertrains engines. For 2026, they will collaborate with new partner Ford Motor Company.
Red Bull Reportedly Earned a Modest F1 Profit in 2021
Running a top-level Formula One team requires mammoth budgets in the hundreds of millions. But Red Bull Racing still manages to operate profitably according to insider estimates.
The team generated an estimated profit of £1.3 million in 2021 on revenues of £285 million. This was almost double its estimated profit in 2020, likely boosted by winning the driver‘s championship with Max Verstappen.
Estimated Financials of Red Bull Racing:
- 2021 Revenue: £285 million
- 2021 Profit: £1.3 million
- 2020 Profit: £700,000
A huge chunk of revenue comes from sponsorship deals and TV broadcasts. Red Bull also saw increased merchandise sales after winning the driver‘s title in 2021.
But the F1 Team Brings in Billions for Red Bull‘s Brand Value
While the team itself turns a small profit, Red Bull Racing brings in billions for its parent company in branding and exposure. Red Bull spends over $300 million per year in F1, just around 3% of its $9 billion in total revenue.
The television broadcasts, race sponsorships, media content, and merchandise sales driven by its F1 success boosts Red Bull GmbH‘s revenues enormously. This likely justifies continuing to fund its Formula One racing program.
Key Takeaways on Red Bull Racing‘s Ownership and Finances
- Austrian company Red Bull GmbH owns the F1 team and invests heavily in its success.
- But the Yoovidhya family holds a 51% majority stake in Red Bull GmbH.
- Dietrich Mateschitz was the visionary face of Red Bull until his death in 2022.
- The F1 team makes a slim profit but drives billions in branding value for Red Bull.
So in summary, Red Bull Racing is controlled by Red Bull GmbH, which is itself majority owned by the secretive Yoovidhyas. This allows Red Bull to invest strategically in motorsports marketing programs like its successful F1 team!
Let me know if you need any other details on Red Bull‘s ownership structure or finances. Happy to chat F1 anytime!
