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Will Red Bull pull the plug on Formula One?

Daniel Ricciardo of Australia . (Photo by Mark Thompson/Getty Images)
Expert
24th June, 2015
8

It’s hard to fathom that the team that won four consecutive Formula One world titles between 2010 and 2013 and claimed three race wins in 2014 is mired in the midfield and considering withdrawing in 2015.

Red Bull Racing suffered the indignity of both its cars being sent to the back of the grid with engine penalties at its own Red Bull Ring for the Austrian Grand Prix last weekend.

Daniel Ricciardo could only manage 10th place with teammate Daniil Kvyat in 12th, both lapped by the dominant Mercedes-Benz team.

In the midst of a crisis in its relationship with engine partner Renault, Red Bull has been dropping some big hints that it could end its tenure in Formula One unless and alternative engine is sourced.

“Besides taking our time and money they [Renault] have destroyed our enjoyment and motivation,” said Red Bull boss Dietrich Mateschitz.

“No driver and no chassis in this world can compensate for this horsepower deficit. How many more things have to happen before we lose all enjoyment?”

Red Bull entered Formula One after purchasing Jaguar Racing (formerly Stewart Racing) in 2005, emerging as a real threat once gun designer Adrian Newey and up-and-coming protégé Sebastian Vettel joined the team.

After dominating for a four-year period once the Newey and Vettel dream team hit its stride, it seems like sour grapes to threaten to withdraw when hitting an inevitable lean patch.

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But, unlike most other Formula One teams who exist solely to race, grand prix racing is one part of a wider marketing strategy for Red Bull. If there’s no traction to be gained from racing in Formula One, or negative publicity from poor results and a very public spat with its engine partner, then what’s the point for a company driven by selling energy drinks?

Red Bull’s place in Formula One is, therefore, unique. And there was always a danger that its time in the sport could be limited based on the huge expenditure to go racing and diminishing returns on traction when results went bad.

Formula One is one big part of Red Bull’s very aggressive marketing strategy. And just think how much more advertising in various different fields Red Bull could pursue by reallocating its Formula One budget.

Even within motorsport, there is so much more for Red Bull to achieve in other categories. The company was once linked with purchasing the World Rally Championship and could do more in other categories such as MotoGP, the World Endurance Championship and more.

The potential departure of Red Bull would have a huge impact on Formula One at a time the series can ill afford such a loss. Red Bull not only funds two teams but its junior driver investment program has helped a number of drivers into the premier category.

Formula One organisers can’t rewrite the rulebook to suit Red Bull. Some are screaming for engine concessions to help Renault and Honda get up to speed with pacesetters Mercedes-Benz and Ferrari, though this should be to the benefit of a number of teams, not just Red Bull.

But there will be increased concerns among the Formula One community over the future of Red Bull. And one wonders if these very public threats are a way to accelerate an engine deal with a new supplier, be it Ferrari, Audi or whoever else.

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Formula One bosses know very well there are few, if any, companies around the world willing to invest so heavily in all forms of motorsport. Losing Red Bull could be as damaging to Formula One as the loss of tobacco sponsorship given the size and scope of its investment.

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