The Idea Behind Red Bull Owning A Racing Team

The Idea Behind Red Bull Owning A Racing Team

Dietrich Mateschitz, the entrepreneur behind Red Bull, established an F1 team in 2005 after purchasing the ruins of Jaguar Racing from Ford. Previously, the firm has sponsored various Formula One drivers. As a result, red Bull is one of the most successful Formula 1 team in recent memory.


Red Bull Racing, usually known as Red Bull or RBR, is a Formula One racing team with a base in the UK that competes under an Austrian license and is now known as Oracle Red Bull Racing. The beverage business Red Bull owns two Formula One teams, including this one.

Since the creation of the Red Bull Racing team in 2005, Christian Horner has served as its manager. One of the most successful and prosperous Formula 1 team in recent memory is Red Bull, although its history is not always well known. The Austrian team’s history spans more than 20 years, like many other teams on the grid today, but it comprises three sections, including two that are no longer active.

Therefore, it is necessary to go back ten years before the Austrian beverage giant officially entered the sport with its team to completely comprehend Red Bull’s F1 adventure.


Red Bull Casestudy | Business Model | Marketing Strategies

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Red Bull’s Involvement In Formula 1

Full NameOracle Red Bull Racing
Previous NameJaguar Racing F1 Team
FounderDietrich Mateschitz
BaseMilton Keynes, England, UK
First entry2005 Australian Grand Prix

Dietrich Mateschitz, a native of Austria, launched Red Bull in 1987. Red Bull has experienced exponential growth since that time, becoming the world’s most well-known energy drink brand, selling more than 6 billion cans in 2017. With catchy slogans like “Red Bull Gives You Wings” and advertising campaigns launched during athletic and entertainment events, Red Bull has always been a brand that uses highly innovative marketing and advertising. This company’s target demographic is predominantly young people.

From the beginning, Mateschitz was determined to link Red Bull’s brand image to extreme sports competitors’ exceptional physical and mental qualities. Due to this, Red Bull quickly established itself as a significant force in various sports, particularly extreme ones like BMX, skateboarding, cliff diving, air racing, and snowboarding.

Formula 1 would not suffer in any way. On the contrary, Mateschitz saw the ideal chance to promote Red Bull in this sport and extend its brand in a new market with plenty of potential because it has one of the most influential audiences in the world. Even though Red Bull does not market and sells automobiles like most F1 teams, including Alfa Romeo, Mercedes, Ferrari, McLaren, and Renault.

The energy drink company is interested in the sport because it aligns with its founding principles and is an excellent platform for global exposure.

The History Of Red Bull In Formula One

Sauber (1995-2004)

Before creating its squad, the energy drink company entered Formula 1. When Red Bull hired Gerhard Berger as its first motorsport athlete in 1989, it made its F1 debut. Years later, in 1995, Red Bull sponsored the Swiss team Sauber and acquired a controlling share. For the first time, Red Bull served as a significant sponsor.

The Sauber vehicles were imprinted with the recognizable Red Bull emblem, giving them a livery strikingly reminiscent of the current energy drink squad. Because Dietrich Mateschitz desired more influence over the team’s operations, Red Bull sponsored Sauber up until 2004. One of the differences with the Sauber team was the promotion of Kimi Raikkonen over Enrique Benoldi, who was Red Bull’s chosen option.

Jaguar Winning Races (2000-2005)

After that year, the Jaguar team was placed for sale for $1, and Mateschitz took advantage of the ideal chance by purchasing the team, taking over the material, equipment, and people, and renaming it Red Bull. Mateschitz invested millions into the group, which made its formal debut in the 2005 season and appointed his friend Helmut Marko as an adviser and Christian Horner as team manager.

As if that weren’t enough, Red Bull also acquired the Minardi team towards the end of 2005. Toro Rosso made its début in 2006 as a junior team to enable young and talented drivers from the Red Bull Junior program to compete and advance in Formula 1.

Rise Of Red Bull ( 2006-Present)

In the years that followed, Red Bull continued to expand. They achieved their first podium place in 2006, and shockingly, in 2008, Toro Rosso won the Monza Grand Prix courtesy of a teenage driver called Sebastian Vettel, who Red Bull hired. After that, Red Bull rose to prominence, dominating the grid between 2010 and 2013, winning every driver’s and constructor’s championship, with Vettel as their rock star.

Toro Rosso established itself as a middle team committed to developing fresh talent. Both teams haven’t had much chance to win since the hybrid era began in 2014, and Mercedes has dominated the field. Red Bull, though, has continued to be aggressive. Max Verstappen defeated Lewis Hamilton to win the world championship in 2021, 8 years after Sebastian Vettel did the same. This was the first time it ended ahead of the Silver Arrows.

F1 Racing By Red Bull (2005-present)

Red Bull clinched an agreement to purchase the British team’s entry two months after Ford announced that they would sell the Jaguar team, protecting around 340 jobs at the team’s Milton Keynes base. More color and drama have been added to Formula 1 by Red Bull’s 16 seasons have added more color and drama than anybody could have ever dreamed of, and their renowned junior program has produced some of the best drivers on the grid right now.

Mercedes is the only team to have outperformed Red Bull since their debut in 2005. With 64 victories and eight championships (four in the drivers’ and two in the constructors’ championships), they have established their place among F1’s all-time most successful teams.

Formula Racing Income Generation

Red Bull is theoretically losing a lot of money through Formula 1. They made $2.3 billion in F1 investments over their first 14 years in the sport. Red Bull is thought to provide about 35 percent of the club’s annual income, or about $160 million; however, because of the high costs of the sport, the team would only turn a $10 million profit. Red Bull’s goal with Formula 1 isn’t to make money, though; it’s to increase sales of its energy drink.

With an estimated exposure value of $320 million per year between 2009 and 2014, Red Bull’s investment expenditures were more than doubled by the exposure return. As a result, even though it doesn’t directly earn from Formula 1, Red Bull enjoys the sport’s visibility and reputation. As a result, the team has become a tremendously successful marketing machine throughout time, primarily because of its sports accomplishments.


Since Formula 1 is a sport that attracts a lot of attention and advantages, Ed Bull has two teams since it is a significant corporation with plenty of resources and the rules permit it. Therefore, one squad was purchased to fight for triumphs and trophies, and the other was purchased to develop and secure new talent. Mateschitz’s investment in Red Bull has been a great success as the team has been one of the most successful in Formula 1 since it arrived in 2005.

Has Red Bull ever fielded a racing squad?

●        The second Formula One team owned by beverage manufacturer Red Bull GmbH is Scuderia AlphaTauri, and this one is one of them.

How is an F1 team owned by Red Bull?

●        Dietrich Mateschitz, a co-founder of Red Bull, signed a sizable contract with Sauber, which required them to remain with the Swiss team until the end of 2004, when they entered Formula One as a team outright.

How did Red Bull amass such wealth?

●        Red Bull earns money by charging exorbitant prices for its energy drinks and reinvesting most of its enormous revenues into its advertising efforts.

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