eli5: Where does Redbull gets all this money to make an f1 Team and sponsor many more Events?
In: Economics
The soft drink industry is worth hundreds of billions of dollars. Red bull is part of that industry and makes billions by selling cans of soda for $3 each. They make even more money by using those earning to advertise their product to more consumers. Those advertisements include sponsoring events.
Investments/investors, selling merchandise, selling an overpriced energy drink, and investing their own money to make it grow.
Redbull makes a very popular energy drink; it gives you wings. It sells and makes lots of money for them to sponsor tons of events.
They sell poison in a can, in a handful of equally terrible flavors. Including diet versions.
The money made from selling this slurm, along with the undeserved sense of self-worth it provides, makes for a lot of F1 events, skydiving shows, wingsuit terrors, and the make your own plane thing and push it off the dock competition.
Flavored sugar water is very cheap to make yet people will pay several times it’s cost for it.
Redbull gets all the money they spend marketing their product from selling their product.
The energy drink market in the US in 2020 was 3.7billion dollars and Red bull has a 43% market share.
They are sold in 167 countries and for what they spend on sponsorships and events they recoup in sales from the marketing of the product at those events.
The MD has a net worth of ~26bil dollars so that can give you some idea of the company worth. ITS HUGE
Sponsorship deals conparitvely are nothing what $100-500K depending on who it is? And events probably between $25-100K?
Big numbers to normal folk but pennies to those companies.
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