People are jumping to undue conclusions by a lack of proper analysis of such financial data. There are several things that have to be considered when we read about budgets, revenues, team valuation, sponsorship, advertising value equivalence and the like.
1. When you look at company house figures as the Züricher Zeitung did you have to consolidate the figure and not simply add them up, because RBR and RBT had internal sales that have to be consolidated. You also have to basically add all figure for RBR and STR if you want to make them comparable to Ferrari. At least that is what is often done in some of the reports on brand value.
2. Budget must not be mixed up with revenues. Revenues mainly come from FOM pay out and sponsorship. Revenues will split into budgets and potentially profits. Revenues and profits are driving the valuation of teams and brands.
3. Advertising value equivalence are non cash revenues and generate an option to avoid other costly advertising expenditure for your product. It is significant when you are the title sponsor of one or more teams like Ferrari and Red Bull. AVE in F1 is $1.5-2bn. A team brand can forgo sponsorship revenue and go for maximizing AVE as Red Bull does with both F1 teams. They almost completely use their four cars and two teams to advertise Red Bull. If you consider the Red Bull strategy strange to maximise the AVE you only need to look at global sales of the two brands to find the explanation. Ferrari had global sales of $1.5bn and Red Bull had $5.25bn. It means that every advertising dollar Red Bull spends is likely to generate 3.5 times as much additional sales as it would do for Ferrari. It is simple to do the math who is going to do more advertising or better convert more revenues to AVR.
Having said all that one can put together some comparative data for Red Bull and Ferrari. Red Bull in those figures always stands for two teams cumulatively:
-------------Team Value----------Budget---------------Revenues----------AVE---------------Profit--------AVE+REV-----Profit+AVE
_____________________________________________________________________________________________________
Red Bull....$535(400+135)m...$195(125+70)m.....$185(160+25)m...$360m(24%).....-$10m.......$545m.......$535
Ferrari......$1,150m............$125m................$384m.............$90m(6%).........$259m......$474m.......$349
What we see is that Ferrari is by a wide margin the group with the highest income. They do not spend money on F1 they profit to the tune of $259m or $349 if you include AVE.
Red Bull have a negative profit of -$10m because they forgo much sponsorship potential in favour of generating AVE. When you look at combined profit including AVE Red Bull is pushing very strong with $535m.
These figures explain why Red Bull are currently generating Team value much faster than Ferrari. Ferrari took many years to build up the huge team value. Red Bull are still playing catch up but they are doing it very smartly.
If one speculates how both teams will operate under a budget race one only has to look at the huge reserves of revenues of Ferrari and the huge AVE of Red Bull to conclude that they can easily double their budget if they want to.
Sources:
http://www.forbes.com/sites/chrissmith/ ... able-team/
http://asia.eurosport.com/formula-1/bus ... tory.shtml
http://www.google.de/url?sa=t&rct=j&q=& ... GwopCtYf0Q
http://www.nzz.ch/nzzas/nzz-am-sonntag/ ... 1.17757702
