Update: Horner huge payout risks wiping out Red Bull’s financials – Red Bull Racing has had another profitable year, although there is an important caveat to the figures. While the team’s financial statements show that revenue from sponsors and commercial partnerships continues to climb, the accounts are weighed down by extraordinary costs linked to Christian Horner’s departure. The former team principal, dismissed in July 2024 following allegations of misconduct, reportedly received one of the largest compensation packages in sporting history.
For the 2024 fiscal year, the Milton Keynes operation closed with a net profit of £1.68 million. This represents an increase of almost 30 per cent compared to the £1.3 million recorded in 2023. While these sums are relatively modest compared to the vast scale of the Formula One industry, the continuation of positive results for a fifth consecutive year underlines the financial resilience of the Red Bull structure.
The headline revenue figure rose to £314.4 million in 2024, up from £290.7 million the previous year. This steady progression is consistent with the growth pattern seen over the past five years. On the expenditure side, administrative costs saw the sharpest increase, climbing by 37.5 per cent to £22.97 million. Despite this expansion, Red Bull remains one of the most efficient teams in terms of overheads compared to its rivals.
£7.11 million profit over four years for Red Bull
Across the five-year period from 2020 to 2024, Red Bull Racing accumulated total profits of £7.11 million. This puts the team behind Alpine and Haas, who generated higher net earnings during the same period. However, the Milton Keynes squad is in a much stronger position than Aston Martin, McLaren and Williams, all of which recorded losses. Mercedes remains the standout in the financial league table, having posted an extraordinary £376.38 million in profits.
The expansion of Red Bull’s commercial portfolio has been the primary driver of this stability. The partnership with Visa brought in a new revenue stream, and the deal with sportswear brand Castore was described as ‘record-breaking’ in terms of both its scale and its duration in the sport. Added to this are long-standing alliances with AT&T, Tag Heuer and Exxon, which collectively provide Red Bull with access to a broad base of premium sponsors from various sectors. This diversified network has provided a buffer against volatility, allowing the team to maintain competitive income levels.
These partnerships have been crucial at a time of change in Formula One’s commercial landscape. With Liberty Media pushing for expanded race calendars, new broadcast deals and broader digital engagement, teams that can secure and sustain top-tier sponsorships are better placed to weather financial turbulence. Red Bull’s continued appeal to global brands reflects not only its performance on the track, but also the visibility of its drivers and the marketing strength of the wider Red Bull organisation.
The shadow of Horner’s exit
Despite the positive revenue story, the major complication is the compensation awarded to Christian Horner, the former team boss left in July 2025 following internal investigations into allegations of inappropriate behaviour towards a colleague.
While Red Bull has not publicly confirmed the settlement details, estimates suggest a payout of between £52 million and £80 million, which would make it one of the most expensive severance agreements ever seen in professional sport.
This extraordinary sum has the potential to erode the team’s slim profit margins. Even with annual revenue of nearly £315 million, a net profit margin of just £1.68 million is extremely narrow, and any one-off expense of this scale could easily push the operation into deficit.
Unless countermeasures are implemented, such as new commercial deals or further cost efficiencies, the legacy of Horner’s era could haunt the balance sheet for several seasons to come.
The case highlights the delicate balancing act within Formula One’s financial ecosystem. Although the cost cap was introduced to limit competitive spending and encourage sustainability, teams remain vulnerable to extraordinary expenses that fall outside its scope. Severance packages, legal disputes and corporate restructuring do not fall neatly within the cost-control framework, leaving management with little protection against sudden financial shocks.
A complicated situation
For Red Bull, the situation is further complicated by its dual role as a racing team and a global marketing platform for its parent company. The success of the Formula One team is central to the Red Bull brand identity, and maintaining dominance on the track is vital for sustaining its commercial appeal.
This explains why the organisation continues to attract major sponsors, but also why it faces such risks when internal crises become public knowledge.
Looking across the paddock, the contrast is stark: Mercedes continues to set the financial benchmark, with profits that dwarf those of all other teams. While less successful on the track, Alpine and Haas have still managed to outpace Red Bull in terms of cumulative profit over the past five years.
This suggests that the Milton Keynes outfit’s aggressive pursuit of performance comes at a cost. Meanwhile, the struggles of Aston Martin and Williams demonstrate the precarious nature of team finances outside the very top tier.
Killing the Porsche Partnership Lit the Fuse on Horner’s F1 Demise
Bottom line
The question is whether Red Bull can continue to walk this tightrope. The strength of its sponsor network suggests a solid foundation for future stability, provided the team can maintain its competitive edge on the circuit. However, the financial impact of Horner’s departure cannot be dismissed. With margins already slim, the cost of his settlement could undo several years of careful growth and undermine the foundations of Red Bull’s financial model.
A longer-term concern is whether such extraordinary costs will put pressure on other areas of the business. Will the team need to scale back certain development projects or rely more heavily on the broader Red Bull corporate umbrella for support? Alternatively, will the brand’s global marketing machine simply absorb the shock, allowing the racing team to continue largely unaffected?
What is clear is that the departure of its long-serving principal has created an undeniable financial burden. How the team responds in the coming years will determine whether this era is remembered as one of sustained prosperity or fragile success threatened by internal turmoil.
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For much of the season, McLaren have set the pace. Their MCL39 has been the most consistent performer across a variety of tracks, though it has its limitations. Meanwhile, Red Bull suffered spells of inconsistency, but countered with decisive upgrades that have kept Max Verstappen in contention.
Mercedes and Ferrari have also enjoyed success, but neither has managed to perform consistently. The order has shifted again since the summer break, and as the championship draws to a close, each circuit presents a new test of the teams’ strengths and weaknesses…READ MORE ON THIS STORY
Alex Stanton is a Formula 1 journalist at TJ13 with a focus on the financial and commercial dynamics that underpin the sport. Alex contributes reporting and analysis on team ownership structures, sponsorship trends, and the evolving business model of Formula 1.
At TJ13, Alex covers topics including manufacturer investment, cost cap implications, and the strategic direction of teams navigating an increasingly complex financial environment. Alex’s work often examines how commercial decisions translate into on-track performance and long-term competitiveness.
With a strong interest in the intersection of sport and business, Alex provides context around Formula 1’s global growth, including media rights, expansion markets, and manufacturer influence.
Alex’s reporting aims to explain the financial realities behind headline stories, helping readers understand how money, governance, and strategy shape the competitive order in Formula 1.
With over 30 years of experience in Formula 1 as an insider journalist, I have built trusted connections across the paddock, from race engineers and mechanics to senior team figures. At The Judge 13, I and a handful of trusted colleagues share exclusive Formula 1 news, expert analysis and behind-the-scenes stories you will not find in mainstream motorsport media.
GOOD!
And from all I’ve read, CH was supposedly fired because he chose NOT to proceed with the Porsche partnership and was NOTHING to do with the ‘inappropriate behaviour’ charge – of which he was cleared, TWICE!!