Scuderia Alpha Tauri is one of the two Formula 1 teams that are owned by Red Bull. From 2006 to 2019, it was called Scuderia Toro Rosso. Since 2020, its name has been tied to the high-end fashion brand owned by the Red Bull group. It is a well-known Formula 1 team that has made a lot of progress in the last few years, thanks to constant racing improvements and company growth.
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Watch this video to learn about how F1 teams makes money.
Does the Alpha Tauri F1 team produce profit?
The Austrian energy drink company Red Bull is the team’s biggest source of income for Alpha Tauri. In the financial year that ended in December 2018, Red Bull paid the team $82.9 million. In 2018, the team made a total of US$183.6 million. Of that, US$59.7 million came from Formula One in the form of prize money, commercial rights fees, and research and development grants. US$29.5 million came from sponsors like watch company Casio.
- The AlphaTauri team came from the Formula 1 team Minardi, which ran from 1985 to 2005. Even though they had a lot of fans, the Italian team never made it to the podium and could only finish fourth three times.
- In 2006, the first two drivers for Toro Rosso were Vitantonio Liuzzi and Scott Speed. Neel Jani was the test driver and the third driver. The STR1 chassis was a tweaked version of the car Red Bull used the year before.
- Before the 2020 Formula 1 season, Toro Rosso changed its name to Scuderia AlphaTauri to promote Red Bull’s clothing line of the same name.
- In 2022, both Gasly and Tsunoda will still be with AlphaTauri. Given how many crashes he had in 2021, Tsunoda was surprised that the team decided to sign him again.
Understanding how Alpha Tauri F1 earns their money
The Austrian energy drink company Red Bull is the team’s biggest source of income. In the financial year that ended in December 2018, Red Bull paid the team $82.9 million. In 2018, the team made a total of US$183.6 million. Of that, US$59.7 million came from Formula One in the form of prize money, commercial rights fees, and research and development grants. US$29.5 million came from sponsors like watch company Casio.
At US$56.5 million, team equipment and materials for building the cars were the most expensive things. At US$45.6 million, services like travel, driver fees, energy, and phone calls were the most expensive things. Staff costs added up to US$40 million, which was spent on 310 employees. Four were in upper management, 14 were in middle management, 190 had white collar jobs, and 102 had blue collar jobs. Toro Rosso paid Honda fees for its 1.6-liter engine, which were part of the $22.6 million cost of third-party assets.
US$5.7 million was spent on investments in things like machinery, hardware, and equipment. While US$800,000 was spent on investments in things like software. Toro Rosso spent the rest of its money on non-cash charges ($8.5 million) and Formula One fees, fines, and sanctions.
The level of detail is because the annual report was originally filed in Italy, which requires more detail for such documents. Toro Rosso also needs to file accounts in Britain because its aerodynamics department is based there.
In their financial report for 2018, Alpha Tauri said that it costs US$181.1 million to run a Formula One racing team.
Alpha Tauri revenue and profit compared to other F1 teams
Right now, Alpha Tauri is expected to make $19.8M per year. Also, Alpha Tauri has 87 employees and is expected to make $228,000 per employee. Which, compared to some other F1 teams, seems to be making money.
Mercedes has released its full financial report for the 2021 season. The Formula One team’s profits went up by UK£55 million (US$61 million) that year.
Partly because of the sport’s new financial rules, which last season included a US$145 million cost cap, the Brackley-based team is now spending much less on its operations. As a result, the team’s profits went up from UK£13.6 million (US$15 million) in 2020 to UK£68.8 million (US$76 million) in 2021.
The team’s revenue went up from UK£355.3 million (US$392.5 million) to UK£383.3 million (US$423.5 million) over the course of a year, which is about half of the overall increase in profits. This shows how much the team cut back on spending.
Ferrari’s Formula One team is a big reason why it made €431 million (US$486 million) in sponsorship, commercial, and brand revenue in 2021. This is an increase of 12.9% from the previous year.
In its 2021 annual report, the Italian luxury car company said that its net sales were up 23.4% from 2020, coming to €4.2 billion (US$4.7 billion). Ferrari also said that industrial production costs went up by €65 million (US$73.3 million) compared to 2020. This was partly because of costs related to Formula One and government incentives for technology, as well as startup costs.
Not to mention, Ferrari’s other income went up by €83 million (US$93 million) because the number of Formula One races went from 17 to 22.
Frequently asked questions
What does Alpha Tauri make?
What does Alpha Tauri mean in English?
Why is Toro Rosso called Scuderia?
Are Red Bull and Alpha Tauri cars the same?
Is Alpha Tauri independent?
Is owning a F1 team profitable?
Yes, F1 teams make money, but a lot of it goes back into improving their cars because, as Ricky Bobby says, “if you’re not first, you’re last.” Even though racing costs money, car companies see the costs as a way to market their cars and sell more of them.
Nielsen says that 1,922 million people watched F1 on TV around the world during the 2021 season. Brazil, Germany, Italy, the UK, and the Netherlands were the top viewing markets.
Overall, 66.7% of TV viewers live in Europe. This is followed by Central and South America with 22.1%, Asia Pacific with 5.1%, North America with 3.4%, and Africa and the Middle East with 2.8%. The average F1 viewer is 38 years old, 62% male and 38% female, and their household has an average of 0.44 children.
Because of these numbers, F1 is more appealing than sports like football or tennis, whose fans tend to be older. Sponsors are eager to get involved now, as the sport is taking off in the US and reaching more and more people every race weekend.
Who owns Alpha Tauri’s F1 team?
AlphaTauri is one of the two teams that Austrian drink company Red Bull owns. It is best known as the junior team for Red Bull Racing, which was made to train young drivers for the senior team and promote their fashion brand.
Scuderia AlphaTauri is an Italian team and builder that will compete in the FIA Formula One World Championship in 2020 and 2021. It will replace Toro Rosso and use engines made by Honda.
The junior team for Red Bull Racing, AlphaTauri is one of two teams owned by the Austrian beverage company Red Bull. It was founded to train young drivers for the senior team and to promote the company’s clothing line.
Alpha Tauri no doubt is among F1’s top teams, and is owned by Red Bull, so there is a big brand tag on it. Its revenue and employee rate is increasing at a high rate. Also, they believe reinvesting in advertising and other means of communication is a good approach to increase their fame all around the world.
As compared to its competitors in brand as well as in F1 teams, Alpha Tauri’s got the ability to stand against the toughest opponent and give a hard time to all its competitors.