Formula 1

Ferrari driver Sebastian Vettel.

Red Bull profits increased dramatically after Sebastian Vettel left for Ferrari

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Offloading Sebastian Vettel from Red Bull's payroll has not only had a positive impact on the team's profits but has also propelled the former constructor's champions up the table.

The departure of the former world champion has allowed Red Bull to enjoy a 26% increase in profits, which now totals £11.4 million, according to the Independent

Much of that increase is owed to the fact that the team do not have to pay an exorbitant £13m annual salary to the German. 

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Vettel left for Ferrari after winning four consecutive Formula One titles with Red Bull. His last season with the team in 2014, however, resulted in the racer finishing fourth in the race for the Driver's Championship, a season in which the F1 switched from 2.4 litre V8 engines to 1.6 litre V6 hybrids. 

The German's exit resulted in a steep decrease in the team's costs, therefore fuelling a boost in the team's profits.

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Red Bull's costs in 2015 fell by 11.3%, resulting in costs of £225.5m with a revenue of £235.6m.

The sources of this revenue are the prize money, sponsorship and payments from the energy drink company Red Bull.

The team's drop to fourth spot in 2015 was not due to the loss of Vettel but rather Renault's, Red Bull's engine manufacturer, struggles with the new V6 engine.

F1 Grand Prix of Japan - Race

Engine improvement

After discussions over dropping Renault and leaving the F1, there was a possibility of Red Bull signing with VW engines in an effort to improve the team's performance. 

But that fell through after the German supplier got tangled up in an emissions scandal, resulting in the team sticking with Renault. 

In an effort to enhance the car's performance, a total of £98.3m was spent by boosting it's research and development efforts as well as improving its chassis. 

The addition of 36 staff in design, racing and production departments required a further £70m bringing the total staff to 730. 

These measures seemed to pay off as Red Bull once again climbed the constructor's ladder. 

F1 Grand Prix of Mexico

Second with two to go

Heading into the penultimate race of the season in Brazil, the team lies in second place behind champions Mercedes, these two being the only teams to have won a race this season.

Vettel's Ferrari lies in third spot and the results on the track have been reflected in the driver's demeanor throughout the season. 

During last weekend's Mexican Grand Prix, Vettel broke into an angry outburst on the team radio after Max Verstappen blocked him to finish third. 

The Dutch driver was, however, demoted to fourth due to his actions but Vettel was dropped to fifth place after the Ferrari driver blocked Verstappen's Red Bull teammate Daniel Ricciardo during the closing stages of the race. 

F1 Grand Prix of Mexico

Endorsements

New endorsements from TAG Heuer and Aston Martin have allowed Red Bull to continue to make improvements to their 2017 car, the ultimate motive of the team being to sustain itself without looking to Red Bull for the money.

An increase in revenue and decrease in costs would, therefore, secure the team's future, something that began last year after Red Bull's investments dropped to £44.9m.

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Max Verstappen
Max Verstappen
Formula 1

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