So often it so happens that the best drivers do not win as many championships. For example, many F1 fans believe that Fernando Alonso has been the best driver in the history of F1. In terms of technique. But he has won only 2 championships. In 2005 and 2006 with Renault.
Since the construction of the car plays such an important role in this game, it means that a large amount of money is involved here. To some extent, the team with more money could use better technology and strategies for their cars. But it’s interesting to see that it is a risky business for companies to participate in Formula 1. Let’s look at the financials of Red Bull.
This team has recently won a Constructor Championship, and the winning drivers were from this team as well. In 2018, their sister team Toro Rosso, spend $181.1 million in total. It’s around ₹15 billion. And their revenue was at $183.6 million. Their spending and earnings had a minute difference. Their profit was only $1.8 million. Only ₹150 million after taxes. It’s very little profit considering the money being spent here. And this was a top-level team.
The companies believe that the return on investment they’d get from other sources would be much better. Such as publicity and the progress in technology. In 2022, FiA placed a cap on the budget, $140 million. No team can spend more than this. So that there’s some equality in the competition. This year, in 2023, this cap has been lowered to $135 million.
