Red Bull Racing spent £237.3 million ($304 million) on its Formula 1 programme in 2019, the company’s latest accounts show, but the Formula 1 team still faces a difficult task in scaling back to meet the FIA budget cap that will be imposed in 2021.
Red Bull Racing’s spending fell slightly in 2019 compared to the previous year, accounts reveal that the team spent £237.3m last year, a fall of some £2.3m compared to the 2018 figure of £239.6m. The modest drop followed rises of £33.7m in 2017 and £12.9m in 2018. The team finished third in the constructors’ championship behind Mercedes and Ferrari in both years.
During this time Red Bull changed engine suppliers. Having previously been a customer of Renault, in 2019 the team took on a works engine supply from Honda, which would have been a considerable cost saving for Red Bull.
The team’s spending was significantly higher than the $145 million cost cap which will be imposed from the 2021 F1 season. However there will be many significant exceptions to the new spending limit including the salaries of drivers and top executives, power unit development, travel and accommodation, plus marketing and hospitality costs.
In his comments on the accounts, team principal Christian Horner said their “costs remain under control and the team is mindful of adaptions necessary for new FIA Financial Regulations coming into force for 2021.”
Teams have agreed to a “dry run” of F1’s forthcoming cost cap during the 2020 season. While the spending limit will not be imposed this year, teams will submit financial information as if the cap was in force, giving the FIA an opportunity to test the application of the all-new rules.