Ah, but isn't Red Bull privately held? Coca Cola certainly isn't. "Profitability" isn't always desired in a privately held company, though is demanded of a publicly traded company. The money pit that is Formula 1 would seem less financially desirable from a team ownership perspective for a publicly-traded company - unless the "investment" would be projected to increase gross profitability. Otherwise, it's a tax dump with some fun thrown-in. Ja?
I was just inferring that it makes no sense for Coca Cola to purchase an F1 team, as it goes their branding effectiveness and very purpose as a publicly traded beverage conglomerate. Their participation in F1 would only make sense as a sponsor.
I don't know why Mateschitz decided to buy 2 F1 team instead of sponsoring them instead. It maybe that he wanted absolute control over the operations and put his management in place. But it make sense to acquire what is effectively a very high-tech engineering company and fund it, rather than just paying to have your name on the cars for a few years. At the end, if Mateschitz decides to quit, he will have something to sell (probably at high price) and recoup some of his costs, rather than just leave empty handed. Maybe that investing rather than sponsoring allows him more financial freedom , by that I mean tax exemption.
Also, yes, you are right. I didn't think about that. But does owning 2 teams gives him more voice than anybody else?
When things are put to a vote I have to think so. But being a successful team that brings big bucks and new fans to F1 brings even more influence.
I stumbled across this picture on the internet. Predicting that Haas will hire Hulkenberg and get Honda engines? Image Unavailable, Please Login
This Haas, has he anything in common with Carl Hass of Newman-Hass? Because Carl Haas did some F1 years ago with team called Beatrice, I remember.
Frankly, I'm still not sure if you were objecticing to Red Bull's involvement, or pontificating on a theoretical Coca-cola involvement. Either way, I see merit in each company's involvement. Albeit, with potentially diffferent objectives.
Car l Haas of Newman Haas is trucking guy the guy in nascar is a cnc machine manufacturing company. I could be wrong
+1 I have long considered the real possibility Red Bull is snapped up by one of the big two, which would quickly lead to team Red Bull's demise. Dede can't do this forever, and neither of the big two would stand for such an expense, especially if they're not winning. And now Dede is also faced with a challenge in that his relationship with Renault may become complicated or cease to exist if their powertrain issues aren't sorted. It's very interesting times for that team as Dede may see that rebuilding their former glory with a new engine supplier is another half billion commitment he'd rather not part with, on the other hand there is no way Mercedes or Honda (if they are any good, and they are locked for 2015) are going to sell them a power unit.
Now I see. I was addressing William's first paragraph not the coca-cola statement. Sorry for the confusion. Red Bull has been so successful in establishing the team as an extension of their brand that fans no longer see actual race operation.
Nah, we're cool. Thing is, advertising is $$$ straight down the drain - effective or not. It's not a tangible asset. An F1 team has value wether it is effective as an advertising tool or not. It stands as a separate entity, so if it helps overall sales/gross profitability objectives - sweet! If not, it can be amortized and potentially sold as any asset. That's why Red Bull is in the game - and similar "alternative" sporting venues. It fits their "image" and makes/justifies a loss financially where/when appropriate. More power to them! If I had the ability, I would do the same. I would only hope for the same level of success!
Its interesting to contrast RB to Virgin. Two highly successful companies lead by dynamic individuals who excell in branding. One made it big in F1 the other quit in fairly short order.
Actually, I think it has the opposite effect. At least it does in my case. I many times forget that Red Bull makes energy drinks and their involvement in racing is so ingrained in my head now that when I hear the name Red Bull, I think first of the F1 team and often forget that they actually make a product that I can buy. Sent from my Nexus 7 using Tapatalk
No relation. I worked for the Beatrice/Haas/Lola team and it was a promising outfit stymied by the KKR-instigated break-up of the Beatrice conglomerate and problems with its Cosworth Ford V6 turbo. The in-house engineering talent was unbelievable: Ross Brawn, Adrian Newey, Neil Oatley (future McLaren chief designer), John Baldwin (McLaren IndyCar designer), Phil Sharp (later a partner in DPS Composites), and Peter Digby (co-founder of XTrac). Teddy Mayer and Tyler Alexander ran the show, and to my mind it is still – almost 30 years later – the most intelligently laid out F1 facility I've ever seen. Drivers were Alan Jones and Patrick Tambay, both personal favorites of Carl Haas but a bit past their race-by dates in 1986, and very, very nearly Michael Andretti at Montreal and Detroit that year.
True. One did things right in F1, one did things wrong in F1. When you are doing it wrong, it is only so long until the plug gets pulled.
Yes, the Cosworth turbo wasn't a success, and Alan Jones was on a half-hearted come back, several years after having left Williams. Ex-Theodore, ex-McLaren and ex-Ferrari Patrick Tambay was at the end of its career. But I never suspected that the team had such a collection of promising talents among its technical staff. I don't know how the team came to break up.
I don't think Branson put near enough money in F1 to have any success. It started with a Virgin sticker on a Brawn, the year Button was world champion. Virgin never capitalised on that. Then, the branding Virgin went on the newcomer F1 Manor team, only to disappear after one season. I think Branson realised that he was a little fish in F1. Virgin had obtained a lot more exposure in some sporting and spectacular stunts in the past, sometimes with Branson's participation. There was the Atlantic crossing record on a motorboat, then several ballooning exploits across the Atlantic, across the Pacific, and finally 2 round the world flights by the late Steve Fossett. Those got more publicity for Virgin than any foray in F1; they were better value for money as well, no doubt.
