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Finance

Red Bull Spent More Than $80M On Toro Rosso In '16

Torro Rosso has struggled to get to the podium.getty images

It is "no secret that Red Bull is one of the biggest spenders" in Formula 1, according to Christian Sylt for FORBES. The energy drink brand pours $107.1M into its flagship Red Bull Racing team annually. What is not "so well known is that it spends nearly as much on its junior outfit." Called Toro Rosso, which means "Red Bull" in Italian, the team is based in Italy, so its financial statements are not "as easily accessible as those of its British bigger brother." Toro Rosso's latest financial results reveal that in '16, Red Bull paid the team $83.3M, which was 53.2% of its total revenue. F1 cars are developed the year before they race, meaning this investment fueled Toro Rosso’s '17 campaign when it finished in seventh place. Toro Rosso spent $153.5M creating its cars and had a $1.5M tax bill. This left it with a $1.9M net profit, "which helped to offset Red Bull’s turbocharged investment." It "still gives the drinks company high-octane exposure to both teams but the big difference is their performance." Toro Rosso has only won one grand grix -- its home race in '08 -- "and has been overshadowed by Red Bull Racing which has four titles to its name" (FORBES, 8/18).

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