May 22, 2013, 12:30 PM EDT
Christian Sylt and Caroline Reid cover the business of Formula One. More of their work can be found at FormulaMoney.com.
The cars lining up to compete in this weekend’s Monaco Grand Prix and Indy 500 may appear the same. However, with even the smallest Formula One teams running on budgets around five times those of their leading IndyCar rivals, the similarity is only skin deep.
The casual observer might be forgiven for thinking that IndyCar has the superior technology, as Ed Carpenter set a pole position lap speed of 228.8 mph for this year’s Indy 500; Mark Webber’s top qualifying lap at the twisty Monaco track last year was just 100.4 mph.
In reality, the IndyCar teams purchase controlled-cost specification chassis from Dallara, whereas their F1 counterparts are involved in a costly high tech arms race to make it to the front of the grid. Unlike IndyCar teams F1 competitors are ‘constructors’ who build their own chassis — and in the case of Ferrari and Mercedes their own engines — at a cost of hundreds of millions of dollars annually.
The leading F1 teams are constantly developing their machinery in order to eke out the extra split-seconds that will edge them ahead of their rivals. Big name brands such as Red Bull and Mercedes are willing to foot the bill because F1 is the world’s most watched annual sporting event and puts their brands in front of half a billion people worldwide.
As a result, the biggest spending F1 team Ferrari will run on an estimated budget of $470 million in 2013. This is more than 30 times the estimated $15 million budget of the leading IndyCar teams such as Ganassi and Andretti Autosport. The figures — supplied by Formula Money — below explain how the money is spent.
Top F1 team: $470 million; Top IndyCar team: $15 million
This includes the following key areas of spending:
Top F1 team: $125 million; Top IndyCar team: $3 million
The largest single cost for most F1 teams is the design, development and construction of a bespoke chassis. F1 teams must construct their own chassis and although the manufacturing costs of an F1 car are a relatively small $15 million per year, top teams can spend well over $100 million on research and development.
All IndyCar teams must buy their chassis from series provider Dallara. The price is $345,000 per chassis, but the purchase of aerodynamic packages designed for different circuits can add another $150,000-$200,000. A team typically gets through three chassis per driver each year.
Top F1 team: $130 million; Top IndyCar team: $2 million
F1 manufacturers such as Ferrari and Mercedes spend more than $100 million annually on engine development. This is principally to supply their own teams, but they are required to also supply other teams with engines and typically charge $13 million per season to do so.
Honda and Chevrolet typically charge IndyCar teams around $1 million per year per driver for an engine package which will allow the use of eight engines.
Top F1 team: $15 million; Top IndyCar team: $1 million
Restrictions on F1 testing in recent years have seen budgets slashed from $35 million to $15 million annually in order to cut costs. This is still far larger than the IndyCar teams’ $1 million annual spending.
Top F1 team: $47 million; Top IndyCar team: $3 million
Two times world champion Fernando Alonso is one of the highest paid sports stars in the world, receiving an annual salary of $40 million from Ferrari. In contrast leading IndyCar drivers receive $1-2 million per year. Unlike F1 drivers they also receive prize money – $2.5 million for Dario Franchitti when he won last year’s Indy 500 – but are usually expected to give at least half of this to their team.
Top F1 team: $3.3 million; Top IndyCar team: $456,000
F1’s governing body, the FIA, operates a complex system for entry fees where each team is charged a basic fee of $500,000, plus $6,000 per point scored in the previous season for the constructors’ champion and $5,000 per point for everyone else. This has left 2012 champion Red Bull Racing with a bill of $3,260,000 this year. In contrast, IndyCar teams pay $12,000 per car per race.
Top F1 team: $13 million; Top IndyCar team: $1 million
Hospitality may seem like a frivolous extra but it is a crucial part of how an F1 team operates. Sponsors spend up to $100 million annually so expect to receive silver service treatment when they visit a Grand Prix. A top F1 team can spend more on hospitality in a season than an IndyCar team spends on its entire budget. In contrast leading IndyCar teams may spend up to $200,000 at a showpiece event like the Indy 500, but far less at other races.
Top F1 team: Free; Top IndyCar team: $1 million
One area where IndyCar costs far outstrip F1 is in the area of key supplies. Due to the high level of exposure F1 generates, many companies are keen to supply top level products free of charge in return for becoming an official partner of the team. Ferrari, for example, has sponsorship from a range of automotive companies including Shell (gas), SKF (bearings), NGK (spark plugs), Magneti Marelli (electronics) and Brembo (brakes). A typical top IndyCar team spends around $1 million a year on purchasing similar supplies.
Top F1 team: $136.7 million; Top IndyCar team: $3.5 million
*Includes salaries, travel and factory costs.
Aug 19, 2014, 9:09 PM EDT
Last year, reliability was the problem for Toyota’s engines, not power. This year, the situation has been reversed, and Toyota Racing Development’s president says they’re hunting for more performance ahead of the Chase.
Aug 19, 2014, 8:07 PM EDT
Alan Gustafson may not be as well-known as other crew chiefs, but it’s clear that he’s played a big role in Jeff Gordon’s success this season. The NASCAR AMERICA crew breaks down what’s made them such a good pair together.
Aug 19, 2014, 7:31 PM EDT
NASCAR AMERICA talks about Carl Edwards and Daniel Suarez’s move to Joe Gibbs Racing – and the impact of their new sponsor, telecommunications equipment company ARRIS.
Aug 19, 2014, 6:15 PM EDT
Coming up today: Reaction from 2015 JGR drivers Carl Edwards and Daniel Suarez, and current JGR Cup drivers Denny Hamlin and Kyle Busch; No. 24 crew chief Alan Gustafson on the team’s win at Michigan; the Michigan edition of “Scan All 43.”
Aug 19, 2014, 5:30 PM EDT
Four days after racing in Michigan, the NASCAR Camping World Truck Series faces the high banks of Bristol Motor Speedway in Wednesday night’s UNOH 200.
Aug 19, 2014, 4:15 PM EDT
This weekend, Red Bull GRC drivers will compete on a .924-mile layout at Daytona International Speedway that’s the longest they’ve faced so far this year. Catch Saturday’s final at 2:30 p.m. on NBC and NBC Sports Live Extra.
Aug 19, 2014, 3:12 PM EDT
Gibbs, who won two Sprint Cup titles with Stewart in 2002 and 2005, believes that his former driver has the courage to overcome his grief and eventually come back to racing.
Aug 19, 2014, 2:16 PM EDT
e.dams-Renault’s Sebastien Buemi puts up a lap of 1 minute, 31.792 seconds to lead the final day of testing at the UK’s Donington Park.
Aug 19, 2014, 1:31 PM EDT
Eight years ago, the son of Michael and grandson of Mario broke through on the Northern California circuit.
Aug 19, 2014, 1:00 PM EDT
A final report from MotorSportsTalk’s Tony DiZinno on how the Milwaukee IndyFest went off.
Aug 19, 2014, 12:30 PM EDT
After success in Mexico and in the U.S.-based NASCAR K&N Pro Series East, Suarez will take on the Nationwide Series next season with Joe Gibbs Racing.
Aug 19, 2014, 12:10 PM EDT
NASCAR’s Chase Grid Live sweepstakes open until August 29; provides fans potential VIP trip ahead of Chicagoland Chase opener.
Aug 19, 2014, 11:52 AM EDT
Carl Edwards was almost destined to move to Gibbs, and it’s time to see whether his new opportunity will yield as much success for him as other switches have for others.
Aug 19, 2014, 10:17 AM EDT
Carl Edwards confirmed at Joe Gibbs Racing for 2015 and beyond.
Aug 18, 2014, 9:30 PM EDT
10 Sprint Cup squads tested various configurations today at Michigan as NASCAR looked to nail down its rules package for the 2015 Cup season. Today on NASCAR AMERICA, NBCSN contributor Nate Ryan gave a full report on the proceedings.
Aug 18, 2014, 8:48 PM EDT
Under very difficult circumstances, NASCAR on NBC analyst Jeff Burton went back behind the wheel this weekend at Michigan. Today on NASCAR AMERICA, the Sprint Cup veteran talked about his experience subbing for Tony Stewart.
Aug 18, 2014, 7:15 PM EDT
Coming up today: Breaking down Jeff Gordon’s win at Michigan; Jeff Burton and his weekend with Stewart-Haas Racing; Kyle Larson’s Chase hopes take a hit; teams test potential 2015 rules changes.
Aug 18, 2014, 7:05 PM EDT
Gordon and the No. 24 team have been rolling over the last four weeks. But can they continue their streak of success?
Aug 18, 2014, 5:30 PM EDT
All the notes and numbers to keep in mind as the Race to the Chase heats up in Tennessee.
Aug 18, 2014, 4:30 PM EDT
Tripp Mickle of the SportsBusiness Journal reports that Comcast’s broadband/TV/phone service is considering a five to six year deal valued at over $100 million to take over sponsorship of what’s currently known as the NASCAR Nationwide Series.
Video from NASCAR America
- NASCAR: Joe Gibbs hopeful for eventual return of Tony Stewart 7
- The 2014 Milwaukee IndyFest weekend high on promise, with more positives than negatives 2
- NASCAR’s worst-kept secret is official: Carl Edwards joins Joe Gibbs Racing from 2015 4
- Report: Comcast’s Xfinity, NASCAR closer to series sponsorship deal 0
- Toro Rosso names Max Verstappen for 2015 race seat, to become youngest driver in F1 history 3
- Chase outlook brighter for some, cloudy for others after Michigan 0
- Power poised for IndyCar title following oval gains, Milwaukee domination 1