S Poddar
Red Bull Racing, based in Milton Keynes and easily the powerhouse of Formula 1, have found themselves embroiled in a tremendous mass exodus of principal personnel. The great Adrian Newey, Will Courtenay, and Jonathan Wheatley are just a few of the names that have been forced to say goodbye to the team. Well, while one can take this as a bad omen regarding the brewing problem within the Red Bull camp, the truth is not that simple, tangled with the complexities of Formula 1’s financial landscape.
The heart of this issue lies in the introduction of the cost cap to Formula 1. This financial regulation was introduced to give everybody a fairer shot at competition and to prevent teams from spending astronomical amounts on their cars. In doing so, however, it has had far-reaching implications that spread well beyond the confines of the track itself. It limits the amount one can spend on operational personnel when leaving the top three earners.
While their identity is secret, it is known that neither Wheatley nor Courtenay was in the top three. This means that Red Bull’s flexibility in availing a good reward package for retaining key personnel has been severely hamstrung, with all the rest of the world throwing money to get onto the ladder of top talent, while Red Bull can do nothing but sit and watch in the confines of cost cap.
You can’t have a Galactus because you can’t afford it,” Red Bull team boss Christian Horner said of the challenges the cost cap will pose. “You’ve got to look at bang for buck, and it forces you to make some really tough decisions.”
The example of Wheatley’s departure shows how this cost cap is felt. Looking at a chance to become a team principal at Sauber/Audi, Red Bull couldn’t really do much in its defense as the rival team was throwing in financial incentives. Horner said, “We are limited in scope and what we can do for you here. So if you have an opportunity to further yourself and go and earn significantly more money, go for it.”
While it is a bit of a blow for Red Bull with the departures of Wheatley, Courtenay, and Newey, the opportunity is immense. These moves open opportunities for next-tier talents in the organization to step up to the higher realms. For instance, Hannah Schmitz rose from the ranks as strategy director after Courtenay left.
Horner feels there’s an urgent need for people’s internal development in order to have proper succession planning. “You’ve got to have that evolution,” he said. “Similarly with Will Courtenay and strategy. He has been here for 20 years. We discussed other roles within the group. He was offered a bigger role on a very high salary from McLaren, and at that point you have got to say: ‘Good luck. Go for it.’ But at the same time, it gives an opportunity for Hannah Schmitz to move up, which, if she hadn’t had that opportunity, she’d have been a prime target for somebody.”
Such has been the direct consequence of Formula 1’s cost cap regulations: key staff members have been leaving Red Bull Racing. Though the financial constraint of the cost cap has made it difficult for Red Bull to retain their crème de la crème, they’re also opening up and enjoying opportunities that come with such departures. Red Bull will remain dominant in Formula 1 due to its emphasis on development culture and the growth of young talents from within.
