Formula 1

AlphaTauri’s future is uncertain with interest from Andretti and HitechGP teams to buy the team

Published

1 month ago

25/02/2023

Major changes are on the horizon for Red Bull’s sister team, AlphaTauri, as it considers relocation or sale. Hitech is the frontrunner to acquire the team amid the competition of three F1 applicants.

Big changes are coming for AlphaTauri, the Red Bull sister team. They might move to England or be sold, and there are interested buyers. Three teams have applied for a Formula 1 spot.

Red Bull is experiencing a different wind since Oliver Mintzlaff became the new head of sports for the Red Bull group.

Many things that were previously taken for granted are being put to the test, including in Formula 1. For instance, AlphaTauri is currently under scrutiny as the junior team of Red Bull is costing more than its big brother within the current constellation.

AlphaTauri, which finished ninth in the previous season, will receive around $100 million less from the Formula 1 revenue pool than Red Bull this year. While the championship-winning team is earning more money than what is allowed to be spent under the budget cap, AlphaTauri must close the gap with the cost cap on its own.

The model of having its headquarters in Faenza, Italy and its aerodynamics team in Bicester, England has proven to be ineffective for AlphaTauri. Moreover, the level of synergy with Red Bull is not being fully leveraged.

Financial pressure is also being caused by the imminent closure of several fashion brand stores that belong to the Red Bull empire.

Currently, two options are being considered to address AlphaTauri’s problems. One option is for the racing team to relocate to England, bringing them closer to Red Bull and reducing costs in the medium term.

The other alternative is a complete sale of the racing team, and there are already three interested parties in the mix.

Yes, these are the same three candidates who have applied to the FIA for a place in the Formula 1 field.

The rules allow for a maximum of twelve teams. Purchasing an existing team is the simplest and least expensive solution for those looking to establish themselves in the premier category. However, the purchase price is rumored to be around $700 million.

The criteria for admission into the exclusive club as a new team are strict. The FIA is currently reviewing the applicants’ submissions and will then decide by April 30th if and for whom the bases are sufficient to proceed with a detailed analysis of economic, technical, and human resources.

Andretti Autosport And HitechGP team

The global association is keeping a low profile on the candidates and does not want to reveal them until the review process is complete.

However, paddock radio reports that in addition to Andretti Autosport, Oliver Oakes’ HitechGP team has also applied. The British racing team had previously attracted attention mainly for its debut in Formula 3 and Formula 2.

An Indian billionaire has reportedly shown interest in this team. He owns the Mumbai Falcons Racing team, which participates in the Middle East Regional Formula and the Asian Formula 3.

Currently, Hitech is the favorite to acquire AlphaTauri. There is already a connection between the Silverstone racing team and Red Bull, as Hitech has rented Formula 2 cockpits to Red Bull juniors Liam Lawson and Jüri Vips in recent years.

In 2023, Isack Hadjar will also be placed there. Initially, Hitech was funded by Dmitry Mazepin. Due to the war against Ukraine, Mazepin had to resign as a donor. Meanwhile, the money is expected to come from Dubai.

AlphaTauri’s future is uncertain AlphaTauri’s future is uncertain AlphaTauri’s future is uncertain