Tag Archives: Red Bull

Formula One: Three Car Teams and Budget Caps

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Formula One 2018 is delivering everything and anything a fan of the sport could imagine. From the #FightForFive, to a Hollywood worthy #SillySeason, to midseason team takeovers, new logos, fonts, and of course the epic theme music from Brian Tyler. Yet bubbling just below the surface political games, regulation frustration, and the adage of money talks, continue to put into question how the sport will evolve in the near future.

Two such pressing topics to explore are the number of seats on the grid heading into 2019, and the evaluation of budget caps with the objective of equalising performance. On the face of it there is no simple solution to either issue. On the topic of budget caps, figures in the region of €200-€250M per season with a soft launch in 2019 followed by a regulated implementation from 2020 onwards have been touted by Ross Brawn and fellow F1 management.  Top flight teams have baulked at the prospect of cutting annual expenditure in half and categorically stated that without significant job cuts the target is not achievable. More efficient teams see the cut as insufficient as the spending to the budget cap would still represent more than double their existing spending capability.

That being said, there is a general acceptance Budget Caps are coming and that they will be good for motorsport in general. Top teams are taking steps to prepare for this more regulated future, as referenced on this site a number of months ago. Taking this preparation one step further, could a budget cap combined with a third car allowance be a solution?

Major costs associated with operating a manufacturer supported Formula One team take the form of fixed costs, these include factors such as facilities & employees. The manufacturing of additional race cars would not have a significant impact on the team’s operating budget. In fact, in many cases, top teams will have 3-4 fully operational race prepared cars before the start of a new F1 season. If top teams committed to operating a third car with no increase in the overall operating budget of the team in essence redirecting development budget to operating a third car, therefore reducing the performance gap to the midfield, F1 could solve the pressing issue of a too many high quality drivers and not enough seats and address the B Class championship regularly referenced when drivers in midfield teams discuss the sport.

In order to reduce the prospect of a single team dominating podium proceedings, restrictions, such as the number of races completed, or championship points scored, could be put in place regarding the experience of a team’s third driver. In addition, a team’s third car could be operated from a separate garage space with an alternative livery to ensure a vibrant look to the grid.

Formula One could mandate the that the top 4 teams in the WCC could be eligible to run a third car with the option to sell this provision should they deem the opportunity not relevant to their operating model. i.e. Should Haas or Racing Point finish 4th in the WCC they could sell their 3rd car allocation to McLaren. Or should Red Bull Racing see their existing model with Toro Rosso to better suit the way in which they go racing they could sell the space to another team.

If Formula One were to explore this route, Ferrari could continue to maintain it’s line up of Kimi Räikkonen & Sebastian Vettel, with Charles Leclerc taking the third car. Mercedes could bring George Russell into the team, Red Bull Racing could not offer Fernando Alonso a seat again, and Renault could bring Esteban Ocon on board alongside Ricciardo and Hulkenberg.

Timed with a budget cap which should limit in-season development for teams running third drivers, the performance gap to the two car teams could be minimised bringing the entire field closer together and sustaining the credibility of young driver development programmes.

Toto Wolff has intimidated Formula One should seriously explore regulations around three car teams, with Liberty becoming the promoter of Formula 2 and the soon to be reborn Formula 3, three car teams may be required to ensure participation remains relevant to the next generation of drivers.

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Formula One: Should Red Bull Racing rest Ricciardo?

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With Daniel Ricciardo having announced his decision to leave the Red Bull Racing family at the end of this season, rumours surrounding the security of position with the team for the remainder of the season have started to gather momentum.

Adding fuel to fire, Red Bull junior team, Scuderia Toro Rosso, yesterday posted images of Red Bull development driver Sébastien Buemi completing a seat fitting with the team, leading many to suggest he may take the place of Pierre Gasly in the coming races. With Red Bull Racing having confirmed Gasly will replace Ricciardo in 2019, there would be a clear logic to promoting him now to maximise his time within a new team environment.

Red Bull Racing have all but secured third position in the World Constructors Championship with an advantage of more than 160 points over their nearest rival Renault. In fact, with the FIA applying 2019 entry fees based on points scored in 2018, the team from a financial perspective would do well to reduce the number of points scored between now and the end of the season.

Since Daniel Ricciardo’s contract with Red Bull stems from his time as a Red Bull junior, there is likely to be a certain level of flexibility within the agreement to change his status to development driver. Moving him to Toro Rosso would be less than palatable for Honda as he would gain knowledge of their power unit before moving to the works Renault team in 2019. As such bringing Buemi back into the STR fold for the remainder of 2018 and possibly beyond makes strategic sense.

Taking the logic of Red Bull Racing having nothing more to gain in 2018 in terms of constructor’s championship position and subsequent prize funds, a yet more bold move from the Red Bull Empire would be to move Max Verstappen over to Toro Rosso for the remainder of the season.

In so doing Verstappen would have the opportunity to familiarise himself with Honda power ahead of 2019, and as Red Bull’s leading driver best equip the team in their challenge constructors battle with Racing Point Force India (who in only 2 races have amassed a points tally greater than Toro Rosso has over the entire season)

Alongside the talk of resting Ricciardo, and bringing back Buemi, another increasingly likely piece of the Red Bull 2019 jigsaw is Daniil Kyvat. After a year spent with the Scuderia in a development driver capacity, Red Bull look likely to welcome the Russian back into the fold with open arms.  From Honda’s perspective, the sooner he returns with any knowledge of Ferrari’s trick power unit, the sooner they can interrogate him for their 2019 plans.

The Singapore Grand Prix on paper represents Red Bull Racing’s last opportunity to win a race in 2018. The sporting side of Red Bull will likely leave the line-up unchanged until after this race. The business & strategic planning side should then kick in and make the following changes for the remainder of the season:

Red Bull Racing –

Pierre Gasly

Sébastien Buemi

Scuderia Toro Rosso –

Max Verstappen

Daniil Kyvat

From a personal perspective, I am a huge fan of Ricciardo and what he brings to Formula One, but Red Bull have little to gain from keeping him in his seat for the remainder of this season. There is an opportunity to take a competitive advantage with the suggested driver changes. A team looking to challenge for championships in the next 24 months must take every opportunity presented to them.

Be Bold Red Bull! Be Bold!

Formula One: CONFIRMED – Ricciardo leave to Red Bull Racing at the end of 2018

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BAKU, AZERBAIJAN – APRIL 29: Daniel Ricciardo of Australia and Red Bull Racing prepares for the race in the garage before the Azerbaijan Formula One Grand Prix at Baku City Circuit on April 29, 2018 in Baku, Azerbaijan. (Photo by Mark Thompson/Getty Images)

As predicted on this site earlier this year, Aston Martin Red Bull Racing have confirmed Daniel Ricciardo will leave the team at the end of this season.

Commenting on Daniel’s decision, Aston Martin Red Bull Racing Team Principal Christian Horner said: “We fully respect Daniel’s decision to leave Aston Martin Red Bull Racing and we wish him all the best in his future. We would like to thank him for his dedication and the role he has played since joining the Team in 2014, the highlights, of course, being the seven wins and the 29 podiums he has achieved so far with us.
“We will now continue to evaluate the numerous options available to us before deciding on which driver partners Max Verstappen for the 2019 season. In the meantime, there are still nine races left in 2018 and we are fully focused on maximising every opportunity for Max and Daniel for the remainder of the season.”
At this time no official announcement has been made about Riccardo’s plans for 2018.
More to follow… #SillySeason just got crazy!

Formula One: Turning the Red Bull Racing Aston Martin story on its head

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Amongst the #ToroHondaRenaultMcLarenRosso hype during the Singapore Grand Prix weekend, news of around Aston Martin increasing its involvement in Formula One with Red Bull Racing has started to solidify. Andy Palmer, Aston Martin CEO, when quizzed on the grid by Sky Sports F1’s Martin Brundle confirmed the business is keeping a watching brief on 2021 engine regulations, which should they fall favourably towards independent manufacturers, could lead to increased involvement of the brand. Should this be the case Palmer confirmed Aston Martin may seek to preemptt the regulation change by enhancing their visibility with Red Bull Racing possibly from as early as 2018.

This news comes at a time in which the media are speculating Red Bull’s long-term interest in Formula One may be dwindling, which has lead some observers to suggest a change of ownership of Red Bull Racing under the guise of Aston Martin. Whilst this is entirely possible, there are, in my opinion, a few to many creative leaps being taken for this outcome to be viable.

Firstly, lets address Red Bull or more specifically Dietrich Mateschitz’s diminished interest in Formula One. Red Bull entered F1 to sell a product, this objective is the same today as it was 30 years ago. In 2016 the Red Bull achieved more than $1,000M in media coverage from through Formula One. This far exceeds any investment the brand makes into the sport. With budget caps on the horizon, the business rationale for a marketing focused business to be involved with F1 will only increase. Should a $150M budget cap be achieved, Red Bull Racing can be assured of achieving this investment through existing sponsors, and prize funds. Red Bull stand to benefit from $1000M in free advertising.

2017 saw Aston Martin return to profit for the first time in over a decade. The business has stated ambitions around going public in the coming 5 years and are focused on expanding their automotive range to increase revenues. At this time, and in the mid term they are not a business capable of sustaining any form of Formula One engine development plan. Aston Martin Racing is a completely separate business to the Aston Martin which sponsors Red Bull Racing.

Returning to Dietrich Mateschitz. A serial entrepreneurr and self made billionaire. In recent years, he has seen the likes of McLaren diversify into the production of cars, and Williams create successful businesses in the application of their technology within a commercial environment. He is aware that the technical capability of the Red Bull Racing group is under utilised, something which will only increase under a F1 budget cap.  Projects such as Newey’s America’s Cup Project and the Aston Martin Valkyrie Hypercar project show an evaluation of ways in which the team can direct resources to other projects. Could this lead to an alternative direction for Red Bull Racing?

Rather than Aston Martin becoming title sponsor of Red Bull Racing, with a view to producing a power unit under the 2021 regulations. Could Red Bull be considering buying Aston Martin, supporting them in the acceleration of their automotive expansion plans, facilitating F1 power unit development, through their partnership with AVL, and using the proven brand power of Formula One allow Dietrich Mateschitz to evolve Aston Martin into a genuine competitor to the entire Ferrari Group.

Dietrich Mateschitz acquiring Aston Martin and reshaping his position in Formula One towards a Red Bull owned Aston Martin F1 Team, from a business perspective appears entirely more feasible than a company reporting $16M profit, having committed $550M to new road cars, suddenly investing $20M per annum in title sponsorship then paying to develop  an F1 engine.

All that being said, Red Bull, through offering half stories and snippets of information continue to dominate F1 news despite being unable to challenge for a world championship. The business continues to offer a master class in media manipulation. As in 2014, when F1 news was dominated by stories of Red Bull looking set to quit Formula One, Red Bull have an ability to create their own news to ensure they dominate the F1 headlines between the races.

Finally, despite quotes to the contrary, Red Bull Racing are very well aware that the best chance they have of securing a return to a championship challenging position is with a fully funded manufacturer. Talk of Aston Martin, in my opinion, is nothing more than a negotiating tactic around the terms under which the Volkswagen Group will enter Formula One.

Credit to Sean Bull for the fantastic livery creation supporting this article. 

Formula E: Why Audi don’t need Formula One

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Following on from yesterday’s post suggesting that after their success in the World Endurance Championship, Porsche may be considering a future in Formula One, Livery designer extraordinaire & MsportXtra partner Sean Bull went on to post livery concepts around a Future for Audi in F1 again partnering with Red Bull Racing.

Whilst I’m a huge fan of the livery concept. To me, Audi’s future in motorsport sits within Formula E. Earlier this month Audi became the first German Automotive manufacturer to officially commit to the championship, taking over the Abt team license.

As an automotive manufacturer, Audi has recognised the trend towards Electric Vehicles and are embracing it. In motorsports, with Formula One, Audi would be forced into a battle of the budget in order to compete and to be seen as a success. With Formula E, they can engage with a younger audience demographic within a cost controlled environment, in a sport supported by governments and industry. They have an opportunity to lead, not follow.

As Audi works driver Lucas Di Grassi tweeted last month, drivers might miss the 1000bhp LMP1 beasts of Le Mans but the future is Electric, and Audi have embraced their future.

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Formula One: Throwback Thursday – Red Bull Racing (don’t) split from Renault

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If you’ve caught more than 10 minutes F1 coverage or spent anytime on popular F1 news aggregator sites over the last few weeks you would be forgiven for thinking the Mclaren Honda divorce was complete. Based on all confirmed sources this is not the case.

F1 media, as with any media, has a tendency towards sensationalism. A controversial headline will attract readership.  I have to admit, I’m not adverse to the occasional sensationalist headline here on JWGP.

So, whilst the F1 world awaits formal confirmation from both Mclaren and Honda around future plans, now seems as good a time as ever to reflect on the last “SENSATIONAL” Team and power unit supplier fall out. When with no official word from either Red Bull Racing or Renault, after 18 months of continuous headlines around a fallout, their split was announced by the media. Except it wasn’t. Two seasons later the partnership is still alive. Yes it has been modified, but the fact remains Red Bull Racing and Renault are partners.  Below is a screen grab of just a few of the credible outlets that “confirmed” the news.

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So while we wait for official news from Mclaren and Honda about the future of their partnership, one fact to bare in mind;

As per FIA sporting regulations, Honda and Mercedes have already confirmed power unit supply plans to the FIA for 2018 (see story with verified sources here). Within this confirmation, Mercedes will supply the same teams they are in 2017, Honda will supply Mclaren and Sauber.

In retrospect Looking back at the “confirmed” Red Bull Racing Renault split, the story ensured continual press coverage for a team performing well below expectations over a 12 month period. This coverage was arguably greater than that which Mercedes received whilst fighting for the championship. A masterstroke in marketing by a true marketeer Dietrich Mateschitz. In November last year, Mclaren replaced Ron Dennis with marketing guru Zak Brown.

How many newspapers are giving midweek coverage to Mercedes win on Sunday?

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Formula One: Red Bull Racing ready to fight for the championship – Ricciardo

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Heading into the second and final pre-season test ahead of the 2017 Formula One World Championship confidence is sky high on Daniel Ricciardo’s side of the Red Bull Racing Garage. From the bold ‘My time’ statement made by the Australian in his latest helmet design to his confident demeanour in recent interviews, Ricciardo is  projecting the air of a driver destinted to challenge for the drivers crown this season.

In his first in depth interview for Mobil One’s the Grid, Ricciardo speaks candidly about his expectations for the season ahead and why he believes 2017 will be his year.

Formula One: Ricciardo’s first run of the year

Red Bull Racing and Daniel Ricciardo recently completed a demonstration run at the ExxonMobil head office in Houston with Mobil One’s the grid there to film all the action. In this first public event between Red Bull Racing and ExxonMobil staff and guests were treated to a series of demonstration laps in the infamous Red bull Racing show car.

Fans of F1 livery design will note this is the first official time ExxonMobil branding, in the form of Mobil One, Esso & Exxon have been seen on a Red Bull Racing F1 car. The positioning replicates that of the teams previous fuel and lubricant supplier. It is highly likely that the livery seen in this demonstration run will be the livery the team use across 2017.

Getting behind the wheel of any racing machinery after the long winter break is always a thrill for F1 drivers, Ricciardo’s joy in taking part in this event (despite the temperatures) is clear for all to see!

As the season gets underway it is expected that similar to other sponsors transitioning from rival teams to Red Bull Racing, ExxonMobil will be keen to embrace the party lifestyle of the brand in a bid to engage with a younger demographic. It will be interesting to monitor how this evolution in Formula One activation by the brand takes shape.

From a business to business perspective, Red Bull Racing don’t (yet) have an automotive manufacturer backing the team, a typical B2B partnership opportunity for a Fuel & Lubricant supplier. The form of partnership we can expect Red Bull and ExxonMobil will be around the Energy drink becoming a prominently displayed / preferred beverage in all Esso / Exxon service stations in the months and years to come.

 

Formula One: Scuderia Toro Rosso switch to ExxonMobil

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Following the announcement that Red Bull Racing have entered into partnership with ExxonMobil from 2017 as the teams Fuel and Lubricant supplier, JWGP can confirm the partnership will extend to a supply agreement for Scuderia Toro Rosso.

At this time it is not clear if the supply agreement will include the use of ExxonMobil or associated businesses branding on the STR 12, but sources at Red Bull Racing have confirmed the supply partnership.

With Scuderia Toro Rosso returning to Renault power unit supply for 2017, following the 2016 campaign in which a 2015 Ferrari power unit was used, Italy’s second team is expected to make significant strides up the grid. Toro Rosso are yet to indicate how the 2017 power unit will be badged. It is understood the power unit has been made available under the same agreement as Red Bull Racing allowing the team to sell the naming rights for the Power Unit, as seen with Tag Heuer and Red Bull Racing. With performance improvements expected such naming rights could prove highly valuable to an existing team sponsor seeking to increase exposure.

Whilst unconfirmed, Renault Sport F1 are not expected to make any changes to their fuel and lubricant supplier TOTAL. The team have confirmed they have made provisions to homologate the 2017 Power Unit for 2 fuel and lubricant suppliers. Such a move will set in motion a separate Power Unit development programme between the Red Bull owned teams and the works Renault Team and could form the basis for an as yet unnamed engine manufacturer entering the sport through the back door….