Can Red Bull keep it up?

kmchow · 19 Mar 2006, 07:13 (Ref:1552532)

How long can Red Bull sponsor 4 F1 cars, DTM, WRC,etc... It can't be cheap. Surely, they must be devoting literally all their profits into motorsport sponsorship?

I thought the company is having some financial troubles or is being audited by the EU?

Meanwhile, HP/Compaq left F1 b/c they felt F1 were underperforming? I noticed Intel has heavily stepped up to sponsor multiple teams?

Raglanparade · 19 Mar 2006, 07:18 (Ref:1552534)

Hmmm ... sponsor F1 teams... or give our money to the governments in tax... wats the better option ?

**Adam43** · 19 Mar 2006, 07:22 (Ref:1552537)

A interesting thread to start 13 minutes into a GP! No in ads for us though.
They have also started sponosing an Aston Martin.

All the other teams probably pale into insiginificance compare to an F1 team.

And then there is the historic planes.

Financial troubles? Doesn't seem like it! I've not heard anything.

Raglanparade · 19 Mar 2006, 07:25 (Ref:1552539)

Well Red Bull might give you wings, but it wont make you finish races.

shambles · 19 Mar 2006, 11:21 (Ref:1552635)

Yeah; it's always puzzled me how Red Bull can afford all of thier activities. I mean, they also own the FC Salzburg Football team, and sponsor and fund other crazy stuff around the globe.

They are a private company, and as such thier accounts and general profit aren't easily available, so it is hard to assess thier financial situation. But Mateschitz must be one rich bloke.

marcel82 · 19 Mar 2006, 13:17 (Ref:1552700)

well, everybody drinks Red Bull, that gets them a lot of cash to spend

BootsOntheSide · 19 Mar 2006, 14:46 (Ref:1552756)

Their profit margins are huge, as the product is greatly marked-up on what it costs to produce. Note that several companies have produced clones which sell much cheaper. Dieter is very image-conscious, and a big motorsport fan himself, which is part of the enthusiasm to contribute to the sport.

flor · 19 Mar 2006, 14:55 (Ref:1552761)

They spent a huge amount of their turn over in marketing

ParkLife · 19 Mar 2006, 15:00 (Ref:1552763)

Basically they are a global company that shifts incredible amounts of its product and daft margins, yet at the same time the company has minimal staff. i.e. their wage bill is negligable.

They are essentially a marketing and logistics company. Thier image sells the product (which is more or less simply glucose and water!), rather than the product creating the image.

Also with them being a private company they have no one to answer to in terms of how much of their proffits they are spending. They make incredible amounts of money, and they make it for themselves, not shareholders.

I just think it's a shame they didn't hook up with Jordan around 1999 / 2000. That would have been a team with on hell of an image!

kmchow · 20 Mar 2006, 02:03 (Ref:1553288)

Quote:

Originally Posted by BootsOntheSide

Dieter is very image-conscious, and a big motorsport fan himself, which is part of the enthusiasm to contribute to the sport.

If only other big name companies shared his passion. Motorsports would be a lot better. Global companies like HP/Compaq, Yahoo, Ebay, Coke Cola,etc... fit perfectly with F1's global championship.

Marbot · 20 Mar 2006, 02:24 (Ref:1553310)

Can RedBull keep it up...no....but maybe Viagra can.

JeremySmith · 20 Mar 2006, 02:40 (Ref:1553322)

Why don't you ask DC?..the thread starter that is.

You beat me to it martyn ..

mountainstar · 20 Mar 2006, 03:29 (Ref:1553342)

I believe their marketing budget is $650 million a year as they divert 35% of gross revenues into marketing.

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