Toro Rosso accounts reveal the cost of running a midfield F1 team


Such is the law in the UK that any private limited company with more than 10.2m in annual revenue and more than 50 employees, has to file publicly-available financial statements each year.

With seven of the teams based in the UK we have become used to the likes of Chris Sylt going through them with the finest of tooth combs.

However, while the financial statements itemise such things as salaries and investment in fixed assets, the majority of the costs are covered by umbrella titles such as production costs and administrative expenses.

In Italy however, companies are required to give a far more detailed analysis of their costs and revenue.

Alfa Romeo (Sauber) is based in Switzerland where companies are not required to file public financial statements, while Ferrari and Toro Rosso are based in Italy.

With Ferrari's F1 team effectively merely a 'division' of the car manufacturer it doesn't need to issue detailed financial results... which leaves Toro Rosso.

Owned by Red Bull, which is in turn owned by the energy drink manufacturer, both teams are private limited companies, with Red Bull Racing based in the UK and Toro Rosso in Italy.

With an aero department in the UK, Toro Rosso subsequently opted to create a branch office also, and as a result has had to make its financial filings in Italy available in English also. Consequently, the more detailed financial analysis that is required in Italy pretty much went unnoticed, but now that it is available in English...

Unsurprisingly, Forbes reveals that Toro Rosso's main source of revenue is Red Bull, which in 2018 contributed $82.9m (63.7m) to the Faenza outfit's coffers.

Sales and services account for another $30.3m (23.2m), which, according to the financial statements, "includes revenues from sponsorship and from the sale of materials and spare parts of $0.8 million (0.6m)."

$59.7m (45.9m) of other revenue included prize money, which, according to the statements, comes from "the F1 World Championship commercial rights, other revenues from core business and grants for research and development", while a $10.7m (8.2m) increase in the value of products under development brought the Faenza team's total revenue to $183.6m (141.1m).

The statements further reveal that in 2018, investment in tangible assets including new production machinery, new hardware and track equipment was $5.7m (4.38m), while $0.8m (0.61m) was spent on intangible assets, such as new software.

However, the more detailed analysis required in Italy also reveals that in 2018 "purchases of materials used to build the F1 cars, team clothing, stickers for F1 cars and other consumables" cost $56.5m (43.4m) while "costs for car transport services, race car driver and team travel and lodging expenses, maintenance and repair of equipment and other operating assets, race car driver fees, consultancy and professional services, advertising services and other general services, such as electricity, mail, telephone, etc" cost a further $45.6m (35m).

In 2018, Toro Rosso used Honda engines, which are understood to cost the Faenza outfit $17m (13m) a year. These are recorded as "third party assets", which also includes "leases of flats and production sheds, rental of cars and other goods, royalties for patents, licences and concessions and championship services. Lastly, it includes rental of test circuits."

This came to $22.6m (17.3m), just over half of what the team paid out in "staff costs" which totalled $40m (30.7m).

So detailed is the information, we learn that the Faenza team has four managers, 14 junior managers, 190 white collar workers and 102 blue collars giving a total of 310.

Non-cash charges account for $8.5m (6.5m), while $1.4m (1m) of other operating costs, including the team’s entry fee, brings the total costs to $181.1m (139.2m), thereby leaving it with a $2.5m (1.9m) operating profit.

Finally, there's $0.3m (230k) in "financial income" and $1m (768k) tax, leaving the Faenza team a net profit of $1.8m (1.38m).

Article from Pitpass (

Published: 16/01/2020
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