F1 News: Why Horner is the best person to lead Red Bull forward (2nd Update)
Michael Schmidt of Auto Motor Sport reports exactly what we wrote below. The meeting of the Red Bull bosses in Dubai brought one result: the position of team boss Christian Horner is stronger than ever. The Thai majority owners support him through thick and thin.
If there was ever any hope of slowing down Christian Horner’s quest for power in the Red Bull Group or even getting rid of him, then it has vanished with the meeting of Red Bull bosses after the Saudi Arabian GP in Dubai. Contrary to media reports to the contrary, Horner’s position at the meeting was not weakened, but rather strengthened.
The Thai majority shareholder Chalerm Yoovidhya is fully behind the plans of team boss Horner, who allegedly wants to take complete power in both the beverage company and the motorsport empire. We here at AutoRacing1.com do not hear that Horner wants to run the beverage company too – he and his big investors want full control of Red Bull Racing.
This would allow Horner the breathing room to take measures that will bring him to the top of the company. And he can set up Red Bull and Toro Rosso for the future according to his own ideas.
So far, Horner has not been able to rule his own racing team as he wanted. In another twist, Yoovidhya wants to move the Red Bull Corporate Headquarters from Austria to Dubai.
And neither Max Verstappen nor Adrian Newey will leave the team as a result – any stories along those lines are just Fake News.
March 20, 2024
The Mirror in the United Kingdom reports that those involved in the Red Bull Civil War have reached a truce following discussions over the last week.
It claims that, for the greater good, they will put their differences aside in pursuit of a fourth world title for Verstappen – and to prevent rivals from poaching key staff as the uncertainty continues.
The Mirror also claims that Horner continues to enjoy support from Chalerm Yoovidhya, who owns 51 percent of Red Bull.
It’s also claimed Austrian Red Bull Franz Watzlawick, who heads the global sales side of the business is also in favor of Horner, as is Austrian Red Bull CEO Oliver Mintzlaff, once thought to be one of his staunchest opponents.
As we mentioned in this article – take everything you read about the breakup of Red Bull, Horner being sacked or Max Verstappen or Adrian Newey leaving for Mercedes, Aston Martin or Ferrari with a grain of salt. It very likely a croc of shit.
March 16, 2024
Christian Horner has been embroiled in a recent sexting controversy, but regardless, this article makes a case why he is the best person to control and lead the team forward.
–by Mark Cipolloni–
Since 2005, Horner has been team principal of the Red Bull Formula One team, winning thirteen world titles (six World Constructors’ Championships and seven World Drivers’ Championships).
If not for this recent sexting scandal, there would never be a question as to who should run the Red Bull team. With Red Bull’s funding, he is the person who made the smart management decisions that has taken the team to the top.
Others have spent more on their F1 race teams. While Mercedes had a good run of domination with their big investment in F1, others like BMW, Toyota, McLaren, Aston Martin, Renault and Honda have failed.
So throwing money at a team is not the only answer, it’s how you spend that money that matters.
How Red Bull is structured
First some background.
Austrian entrepreneur Dietrich Mateschitz and Thai businessman Chaleo Yoovidhya founded Red Bull GmbH in 1984.
While working for German manufacturer Blendax (later acquired by Procter & Gamble) in 1982, Mateschitz traveled to Thailand and met Chaleo, owner of TC Pharmaceuticals. He found that the energy drink Krating Daeng, developed by Chaleo’s company during the 1970s, helped to ease his jet lag.[
After seeing market potential in the drink, he partnered with Chaleo in bringing it to Europe. Under their agreement, the partners invested $500,000 each into founding Red Bull GmbH. In return, they would each receive a 49% stake in the company, with the remaining 2% stake going to Chaleo’s son Chalerm. They also agreed that Mateschitz would run the company.
Between 1984 and 1987, Red Bull GmbH modified the formula for Krating Daeng to better match European tastes by carbonating the beverage and making it less sweet. In 1987, the company introduced their adapted energy drink into Austria under the name Red Bull. It found huge success there by marketing to young professionals. The brand expanded throughout Europe during the early 1990s, exploding into the United States market during 1997, grabbing 75% of the market within a year.
Expanding its distribution to over 171 countries, the company sold over 11.5 billion cans of Red Bull in 2022, making it the world’s most-consumed energy drink
So as I write this, Chalerm Yoovidhya controls 51% of Red Bull and Dietrich Mateschitz passed his 49% to his son Mark when he died two years ago. While the Austrians led by Mark Mateschitz still run the Red Bull company, they only own 49% of the overall company as well as 49% of the Red Bull F1 team
Porsche Tried to buy 51% of the Red Bull Team
Porsche was going to enter F1 by buying 51% of the Red Bull team and developing engines for the team to use as well. However, Horner, and Red Bull consultant Dr. Helmut Marko convinced Red Bull not to give up controlling interest in the company to Porsche and the deal fell apart.
That is when we believe Horner sought out investors with the goal that he and his investors could buy the share of the team that Porsche was going to buy. This would enable Horner to still be CEO and have 51% ownership of the team. This would enable Horner to run the team the way he felt it needed to be run, without outside interference from ‘The Suits’ from Porsche.
That is when the trouble started internally
Supposedly, Horner sought out and put together investors to help him buy a controlling interest in the team without telling the Austrians what he was planning and apparently, when they found out, it did not go down well.
From what we can gather, the Austrians then set out to undermine Horner in an effort to thwart his takeover bid.
Rumor has it that Horner convinced Chalerm Yoovidhya to sell his 51% ownership in the team to Horner, but Yoovidhya would still retain 51% of the Red Bull beverage company.
The Austrians were about to fire Horner over the sexting incident but its reported that Chalerm Yoovidhya sided with Horner and his 51% vote decided the matter – Horner would stay.
Why is Horner Best to Lead the team forward?
Chalerm Yoovidhya will admit he knows nothing about running a F1 team, so he is not going to run it and probably would just as soon take the buyout money he would get from Horner’s group.
The Austrians, while they run the Red Bull beverage company, are not racing people and really have no experience running a F1 team. Dr. Helmut Marko was always Dietrich Mateschitz consultant to be the intermediary between him and Horner running the team because Dietrich was the first to admit he knew nothing about running a F1 team.
Marko was tasked to find talented young drivers for the team and to keep Dietrich updated on major team issues and decisions. That combination worked – Dietrich, Marko and Horner, until Dietrich’s death.
Marko, who is also Austrian, is in his 80s and is too old to run the Red Bull F1 team for the Austrians, and to be honest, would be absolutely the wrong person for the job..
In reality, Horner at 50 years old, is the most qualified to move the F1 team forward, and he feels he can do a better job if he has a controlling interest in the team. Horner can point to the team’s success under his management as a proven track record.
Horner is close with Newey and keeping Newey and head of design, Pierre Wache, in the team is paramount. Newey and Wache together are a formidable pairing and would be Horner’s secret to keeping Red Bull on top.
Newey’s role at Red Bull is not set to change despite recent wild rumors surrounding his future.
Autosport sources have indicated that any idea of Newey changing roles is wide of the mark. His role remains unchanged and, with work continuing on the RB20, he will return trackside as scheduled at the Japanese Grand Prix next month.
It’s all about control
However, the Austrians apparently do not want to give up indirect management control of the team while still having to write the Red Bull checks to sponsor the team.
And that is, as we understand it, where the civil war currently lies.
It will remain to be seen whether the internal infighting can be overcome and some agreement reached between Horner and his investors, and the Austrians.
If Chalerm Yoovidhya decides to sell his 51% of the team to Horner’s group, Horner will win the battle, but perhaps not the war.
Enter the Verstappens
There is a rumor going around that the Austrians would promise the Verstappens a partial ownership in the team if they would help defeat Horner’s attempt of a takeover.
If true, this would explain why the Verstappen’s have taken up sides with the Austrians, with Jos Verstappen going so far as suggesting Horner resign over the sexting scandal. Some think Horner was setup, but we do not know.
If the Austrians and the Verstappen can get Horner out of the way, they could have control of the Red Bull team.
Max Verstappen has talked about not racing until he is 40 and perhaps he and his father have a desire to eventually run the Red Bull F1 team when Max steps out of the cockpit.
Conclusion
It is difficult to know for certain if any of these rumors are true as to what is really going on inside the Red Bull team, we just present what we have heard and will watch to see how it all plays out.
One thing appears certain, however, this civil war is not centered around Horner’s sexting scandal, but instead all about control of the Red Bull F1 team.
The knives are always out in F1. Keep those Netflix cameras rolling, as the battle might get fairly bloody.