Does Formula One need Red Bull?

By Michael Lamonato / Expert

It’s been fascinating to watch Red Bull Racing grow from a small fish in the Formula One pond to a full-scale man-eater across 12 seasons at the pinnacle of motorsport.

From points regular in the late 2000s to dominant constructor between 2010–13, along the way Red Bull Racing has picked up many of the traits particular to Formula One’s biggest teams, and it’s from Ferrari that they have learnt the most.

Ferrari has had few problems it couldn’t quit-threat its way out of, and it is this defining political manoeuvre, nuclear though it may seem, that Red Bull Racing has taken to most keenly.

Look no further than the team’s embarrassing toys-out-of-the-pram 2015 season, when it temporarily severed all ties with Renault and its underpowered engines.

Adrian Newey’s lament that there was “no obvious light at the end of the tunnel” gave way to Red Bull chief Dietrich Mateschitz telling the press that Renault “destroyed [their] enjoyment and motivation” of Formula One and eventually threats to leave the sport if no competitive alternative presented itself.

No such alternative came forward, but the team chose to reunite sheepishly with Renault, albeit with the ‘TAG Heuer’ moniker. It won two grands prix in 2016, after which Mateschitz admitted he never seriously considered leaving Formula One.

But in 2017 it’s happening again. Facing another difficult year – though not solely due to engines – the prospect of being a Renault customer during the next generation of engine rules post-2020 is enough to have Red Bull dive for its favoured negotiating tactic.

After demanding the sport move towards cheaper and less sophisticated power units to coax an independent engine builder to supply his team, Red Bull motorsport consultant Helmut Marko issued the ultimatum.

“We expect from the new owners together with the FIA to find a solution at the latest by the end of this season,” Marko told the F1 website. “If that doesn’t happen, our stay in F1 is not secured.”

It’s straight from the classic Ferrari playbook, but whereas Ferrari need Formula One as its chief marketing activity, the Red Bull brand is sufficiently ubiquitous for university students to continue guzzling litres of the sugary drinks regardless of whether the logo appears on a couple of fast cars.

Further, for the decade-plus of Red Bull Racing’s existence it has become Formula One’s de facto marketing department. The company’s involvement relies on Formula One’s visibility, and with Formula One traditionally loathe to market itself, Red Bull Racing has picked up the slack with all manner of fan days and public demonstrations.

(Red Bull)

And so the age-old question is asked: does the sport need the team more than the team needs the sport?

When car manufacturers like Mercedes or Renault are identified as fickle partners not to be pandered to, the same rules ought to apply to Red Bull, a company involved in the sport for identical marketing purposes and one that could therefore withdraw the moment Formula One ceases aligning with its marketing goals.

But Red Bull’s influence in the sport as its chief promoter is being undone by the arrival of the sport’s new proactive commercial rights holders, and Sean Bratches, managing director of commercial operations, has already set out a broad vision to vastly improve Formula One’s front of house.

“Our interest is to create extraordinary experiences not only on the circuit and on the grid but also for fans as they spend three or four days at a grand prix,” he told reporters in Australia. “We are working very hard with our existing promoters to amplify the opportunities that are prevalent here.

“We’re also spending time look at ways we can partner with them … [to] engage fans and create a big experience not only at the circuit but in the cities that the circuits take place.”

Between now and 2021, when the bulk of the sport’s commercial contracts will be redrafted, Formula One itself will fill the gaps Red Bull used to make itself invaluable.

Furthermore, if new sporting director Ross Brawn has his way between now and then, the competitive field will be equalised with budget caps and regulation rationalisation sufficient that smaller teams in race-winning positions could ameliorate the loss of a perennially competitive team like Red Bull Racing.

This is not, of course, to say Red Bull’s contribution hasn’t been important and nor is it to say Formula One should not continue value Red Bull’s significant brand.

But with Formula One management restructured for the first time with a view to grow the sport, it is difficult to argue that Formula One needs the Red Bull brand in the way it once did.

Follow @MichaelLamonato on Twitter.

The Crowd Says:

2017-05-11T02:35:39+00:00

Elliott Wrigglesworth-Smith

Guest


Red Bull is right. The hybrids have been nothing short of a disaster for the sport. It's a sport, competition, entertainment. Those elements are more important than multinationals using the championship as a public relations exercise. Red Bull is one of the only "pure" racing teams left.

2017-05-10T01:42:34+00:00

mattatooski

Roar Rookie


I will add a third thing that is paramount for F1 to grow ..... There needs to be a online streaming option for people to watch the whole weekend instead of relying on Fox and Channel 10's now pathetic coverage of motorsport in general. And it needs to be cheap enough for the average person to afford. They have to get it out of Uncle Ruperts dirty mitts.

2017-05-09T05:22:55+00:00

deleteaccountplease

Roar Rookie


Red Bull are, and have always been, and interesting team in Formula One. When I say interesting I mean that they can be very controversial, but also a force to reckon with at the same time. I mean just take 2015 when Red Bull had a shocker and kept threatening to pull out of F1! I do hope they stay though, it's great for them to be in the sport considering their massive media presence and popularity with people. Great article, as per usual!

2017-05-09T05:22:53+00:00

deleteaccountplease

Roar Rookie


Red Bull are, and have always been, and interesting team in Formula One. When I say interesting I mean that they can be very controversial, but also a force to reckon with at the same time. I mean just take 2015 when Red Bull had a shocker and kept threatening to pull out of F1! I do hope they stay though, it's great for them to be in the sport considering their massive media presence and popularity with people. Great article, as per usual!

2017-05-09T05:22:52+00:00

deleteaccountplease

Roar Rookie


Red Bull are, and have always been, and interesting team in Formula One. When I say interesting I mean that they can be very controversial, but also a force to reckon with at the same time. I mean just take 2015 when Red Bull had a shocker and kept threatening to pull out of F1! I do hope they stay though, it's great for them to be in the sport considering their massive media presence and popularity with people. Great article, as per usual!

2017-05-09T04:58:40+00:00

steve

Guest


For Formula 1 to grow, its paramount that two things happen in my opinion. 1. More manufacturers on the grid and 2. a situation where there are 4 - 5 competitive teams in with a genuine chance of winning races and landing on the podium regularly.

AUTHOR

2017-05-09T02:03:34+00:00

Michael Lamonato

Expert


It'll be very interesting, and the commercial contracts are a good point — it makes little sense to exit when you'd have to pay out for each missing year. The approach of the new commercial chiefs will be what counts, and not just in the sense that they'll be picking up the marketing slack. Bernie gave Ferrari et al the money bonuses to keep them involved in anticipation of a stock exchange floatation, but historically he hasn't given manufacturers much political power because they have a habit of leaving whenever it suits them (the GFC, for example). But will the new F1 Group choose to bolster its manufacturer numbers at the expense of RBR? We'll have to wait and see. Like you said, if VAG really was interested, having it buy Red Bull Racing — and then having Alfa buy STR, for example — would probably be a slick move. Thanks for the comment!

2017-05-08T21:55:55+00:00

Dale D

Guest


Good to see one of your articles back up in my Google News queue, Michael. Personally, with Liberty Media seemingly keen to take up the role of promoting Formula One like it should be promoted, I would say Red Bull's marketing exercises will become redundant now, and will be seen as self-promotional, as they always were. Sure, we can absolutely argue that RBR demo runs and media content did benefit Formula One; however, the aim was clearly to sell cans of Red Bull. With Ferrari, they have a long history in the sport, and the biggest fan base. While I do not personally agree with their massive payouts - I prefer a more equitable payout structure - I do agree that their value to F1 and F1's value to Ferrari are far more mutually linked than with Red Bull. So, those two things being said, no, Formula One will not need Red Bull, especially if Liberty intends to do more marketing in-house. I also think that Mateschitz was being a bit disingenuous when he said they never considered leaving, because we can pretty much bet that the contract was keeping them there. If I recall, they had to pay a very, very steep penalty if they broke their contract prior to the next renegotiation of the Concorde Agreement, so based on money, it made more sense to stick it out even if success wasn't found. I absolutely believe they would have left if they could simply because the writing was on the wall (and has since been confirmed) that if you aren't building your own engine, you aren't winning a constructors championship anymore. I don't see Red Bull being able to continue to gain an upper hand politically over Merc, Renault, Honda, Ferrari, and so they are going to be up a creek when it comes to finding a favorable engine formula. So my guess is that they will stick it out, and then after 2020 try to sell the team to VAG, hopefully Audi. And honestly, I think the sport would be better for it.

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