Red Bull Racing provided insight on how much the associated costs are for their subsidiary team, Toro Rosso. Accounted for these costs were all factors, including staff payment and the related prices with car materials. For some, it’s surprising to hear that a sporting organization would disclose their financial information. However, there’s a significant reason to why Formula One outfits are required to provide this data.
It’s because several teams are hosted by private companies in Great Britain, which means their required to provide public statements regarding annual finances. Legislation demands that corporations with more than fifty employees and a budget exceeding $11 million to provide all annual revenue statistics. Two of the three teams located outside Great Britain aren’t required to provide financial data, such as Renault or Alfa Romeo, because of their jurisdictional preferences.
These financial statements comprise various costs, including the investment of assets towards production and salaries of employees. Administrative expenses, advertising costs and base fees are accounts into these statements as well. Toro Rosso is the third company-operated outside of Great Britain, instead opting for Italy for their headquarters. Private companies in Italy disclose information with detailed costs and revenue statistics. It’s for this reason that their associated 2019 costs were revealed.
Associated Costs Detailed
The most substantial source of revenue for Toro Rosso is their sister company, the Red Bull corporation. It was revealed that the large logo displayed on the side of Toro Rosso’s, which extends to their rear and front rings, cost the corporation $82.9 Million. Revenues earned from Services and Sales with Toro Rosso comprised of $30.3 million. This extended to various sponsorship agreements, which made the organization $800,000.00 in additional funds. Revenues continue to grow when championship prize money is awarded, with Toro Rosso earned $59.7 million in the 2019 season.
The final aspect of revenue was the valuations earned from product development, which is exclusive to car manufacturers requiring Toro Rosso’s assistance. $10.7 million was made from the product development sector. Collectively, this earned Toro Rosso $184.4 Million. However, all the funds collected were spent on the development of cars and payment of staff. Considering that organizations like Mercedes-Petronas spend more than $500.00 million, Toro Rosso is the budget-friendly organization for Formula One.
It’s unknown what the budget cap for Toro Rosso is with the 2020 Formula One season. However, motorsport analysts predict that an increased revenue percentage will be provided to the Italian Blues. This would follow after they acquired two podium finishes in one season, a first for the racing team since arriving in Formula One.