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First details of Porsche’s F1 buy-in of Red Bull revealed...
The first details of Porsche’s planned 50 percent buy-in of the Red Bull Formula 1 team have been revealed in legal documents, ahead of a potential announcement next month.
(27 July 2022)
Despite the lack of any official press release announcing that the long-rumoured partnership between the German car manufacturer and the Milton Keynes-based F1 squad is go, formal processes have begun to ensure that the tie-up does not hit a snag.
One of the hurdles that needed to be overcome was a green light from anti-cartel authorities around the world to ensure that there was nothing untoward in the two companies joining up.
As well as this needing to be done in the European Union, it also required applications to be lodged in more than 20 countries outside the EU.
One of these is Morocco, whose government legislation stipulates that applications are subject to mandatory publication once approved.
The process to get the green light has required Porsche and Red Bull to reveal details of their tie-up, which have now been published in Morocco by the Conseil de la Concurrence.
The document reveals that Porsche notified the Conseil on July 8 that it will be setting out on a 10-year partnership with Red Bull – which includes a 50 percent stake in its grand prix operation.
It suggests the partnership will be formally announced on August 4.
This week’s notification mentioned only a 50 percent buy in of Red Bull Technology, but it is understood that the partnership will also extend to the separate F1 team business as well.
The revealing of the details by authorities, even before the announcement has been made public, has partly been triggered by delays in a formal green light from Porsche for its F1 return.
The original plan had been for its partnership to be announced at the Austrian Grand Prix three weeks ago.
However, that idea was postponed because the FIA World Motor Sport Council did not approve the engine regulations from 2026 as announced on June 29. Finalised engine regulations are a prerequisite for Porsche to officially communicate its entry into Formula 1.
While the Moroccan document only mentioned Red Bull, its sister squad AlphaTauriwill in all likelihood also compete with Porsche power - anything else would be illogical in view of the synergies sought between Red Bull Racing and AlphaTauri.
The Faenza-based team will, however, remain 100 percent in the hands of Red Bull.
The second brand of the Volkswagen Group, Audi, whose Formula 1 entry has already been approved by all the necessary bodies, is not yet as far along with its project as Porsche.
Motorsport.com understands that the Ingolstadt-based company is still negotiating with Sauber owner Finn Rausing about the acquisition of 75 percent of the team shares.
The Volkswagen Group's Supervisory Board had already given the green light for Porsche and Audi's Formula 1 entry on April 7, 2022, and approved the corresponding budgets after all the boards of the two brands had previously given their consent.
Doubts arose briefly recently because Volkswagen Group CEO Herbert Diess announced his resignation on July 22.
However, Diess will be replaced on September 1 by the CEO of Porsche AG, Oliver Blume, who was already one of the major supporters of the Formula One program at brand level at Porsche.
Link: http://www.motorsport.com/f1/news/porsche-red-bull-buy-in-details/10344242/
So the price to pay in order to secure a reliable engine deal is selling half their company. But at least Red Bull gets to see Alpha Tauri as a subsidiary.
Interesting timeline, 10 years. So basically Porsche has committed to race in F1 for 10 years at least.
Red Bull is the obvious choice. They are among the top 3 teams, and the other 2 are factory teams while they are only a customer team, always at the mercy of engine suppliers. Among the 3, actually all 10 teams, they are the most well run. It's only nature that Porsche would target them, Porsche likes to win. Now Red Bull will be a quasi factory team with full factory support.
While it's a 50/50 partnership, someone has to have the final say. Porsche obviously doesn't like to be pushed around, will be very interesting to see how the internal politics developed.
More interesting tidbit, Christian Horner doesn't have a stake in Red Bull Racing, he is just an employee, unlike Toto who actually partly owns the team. If Horner puts up too much of a fight against Porsche decisions, he runs the risk of getting fired.
Porsche also doesn't like drama, so him and Marko might have to shut it or at least tone it down big time.
Verstappen is another interesting person in this whole saga. He is more of a rebel, doesn't fit the typical Porsche driver mold. If he doesn't fall in line with Porsche's standard for their drivers, he could also found himself needing a new team, world champ or not.
Could Porsche increase their stakes during the 10 year partnership and ultimately buying out all of Red Bull Racing? If there is success it is quite possible. Red Bull themselves kept Alpha Tauri as their own fall back plan. They could always rebadge them as Red Bull Racing after while the original Red Bull team becomes Porsche racing.
Horner can always start transferring personal over to Alpha Tauri, paving the road for if/when the time he gets fired. I mean, he could always install himself as the Principal over there before the pink slip.
Drivers. Porsche currently doesn't have any juniors in open wheel. They will need to start developing their own soon. Red Bull themselves also have a semi-bare cupboard of juniors. Guessing they will be eyeing Alpine's juniors and Williams' also.
So many possibilities. Interesting time.
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