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.
Apr 24, 2014, 11:06 PM EDT
Ryan Blaney and James Buescher topped Thursday’s two practice sessions for Friday’s ToyotaCare 250 NASCAR Nationwide Series race at Richmond International Raceway.
As NHRA closes in on 100 wins by female racers, it all started with one of the greatest, Shirley Muldowney
Apr 24, 2014, 10:01 PM EDT
The NHRA is just two wins away from recording 100 victories by female drivers in the sport’s all-time annals, which could happen in this weekend’s 27th annual O’Reilly Auto Parts NHRA SpringNationals presented by Super Start Batteries at Royal Purple Raceway. And while all eyes this weekend will be on drivers such as Alexis DeJoria and Courtney Force (Funny Car), Brittany and Leah Pritchett (Top Fuel) and Erica Enders-Stevens (Pro Stock) as potential candidates to set that significant milestone, it’s also time to reflect back on who started it all, the legendary Shirley “Cha Cha” Muldowney.
Apr 24, 2014, 9:02 PM EDT
If you like vintage cars, collectors cars, muscle cars — pretty much anything that looks great and is on four wheels — you owe it to yourself to check out some of the fantastic rides that were up for sale Wednesday during the first day of the Mecum Kansas City auction.
Apr 24, 2014, 9:00 PM EDT
The two IndyCar pilots have a blast at U.S. Space Camp before getting down to business this weekend at Barber Motorsports Park (Sun., 2:30 p.m. ET on NBCSN/NBC Sports Live Extra).
Apr 24, 2014, 8:21 PM EDT
Brad Keselowski had a dream season in 2012, winning his first NASCAR Sprint Cup championship. Now Keselowski wants a dream schedule on the Cup circuit – and some of his ideas make sense.
Patrick Carpentier returns to race Quebec’s famed Circuit Trois-Rivieres for first time in nearly 20 years
Apr 24, 2014, 6:34 PM EDT
It has taken him nearly 20 years, but Patrick Carpentier is going back home to race. A veteran of several race series in his career including CART (5 wins), GP3R (2 wins), IndyCar and NASCAR, the Quebec, Canada native will return to the Circuit Trois-Rivieres street course for his first-ever FIA World Championship Rallycross race August 7-8.
Apr 24, 2014, 5:40 PM EDT
Don’t ask Ryan Blaney for directions, period. That’s the message in the latest edition of the Penske Files, in which a Team Penske member asks Blaney for directions to the nearest Discount Tire outlet (Discount Tire is one of Blaney’s primary sponsors in the Nationwide Series this season).
Apr 24, 2014, 5:21 PM EDT
According to driver Aric Almirola, team owner Richard Petty is expected to attend Saturday’s NASCAR Toyota Owners 400 at Richmond International Raceway. It will be the first time that Petty has been at a racetrack since the death of his beloved wife Lynda on March 25.
Apr 24, 2014, 4:00 PM EDT
Steve O’Donnell, NASCAR’s senior vice president of racing operations, says that the process of finalizing the ’15 engine package is underway.
Apr 24, 2014, 3:37 PM EDT
Brandon Davis did all he could to keep Swan Racing afloat. But even a multi-millionaire oil and gas industrialist can only bleed so much money before deciding to throw a red flag on the operation. When anticipated funding and sponsorship failed to materialized, the two-team operation sank so fast that Davis had no other choice but to essentially go out of business.
Apr 24, 2014, 12:44 PM EDT
Improved qualifying will likely yield greater results for RLL Racing at Barber this weekend.
Apr 24, 2014, 11:00 AM EDT
Sebastien Bourdais, Sebastian Saavedra seek their best weekends of the year at the Barber Motorsports Park event.
Apr 24, 2014, 10:15 AM EDT
Dale Coyne’s team, plus a handful of others will need to assemble programs shortly to bring the Indianapolis 500 car count number up to 33, and perhaps beyond.
Apr 24, 2014, 9:30 AM EDT
After Long Beach debacle, Andretti Autosport looks to right the ship, get second straight Barber win this weekend.
Apr 24, 2014, 8:45 AM EDT
Looking for a second straight fast, solid weekend, Josef Newgarden and the SFHR team seek an improvement on P9 in 2013 at Barber.
Apr 24, 2014, 8:00 AM EDT
Round 3 of the Verizon IndyCar Series could be a humdinger at Barber with high drama, high tempers possible after Long Beach.
Apr 23, 2014, 7:00 PM EDT
RPM’s Marcos Ambrose on his start to the 2014 NASCAR Sprint Cup Series season.
Apr 23, 2014, 6:53 PM EDT
John Force is your classic workaholic.
Even when he’s on vacation and supposed to be resting and relaxing and taking things slow, the record-setting 16-time NHRA Funny Car champ never stops working. Force was on vacation with his family last weekend in St. Croix, Virgin Islands, a prelude to his upcoming 65th birthday on May 4.
Apr 23, 2014, 6:00 PM EDT
Swan Racing has restructured its two-car Sprint Cup team, the organization announced Wednesday afternoon. Minority owner Anthony Marlowe has merged his ownership stake in the No. 26 Toyota driven by Sprint Cup rookie Cole Whitt with BK Racing, which now expands to a three-car operation. Meanwhile, the No. 30 team has been sold to John Cohen, owner of XxxTreme Motorsports.
- As NHRA closes in on 100 wins by female racers, it all started with one of the greatest, Shirley Muldowney 0
- Brad Keselowski: Changes overdue to Sprint Cup schedule; offers his ideas 4
- Richard Petty to return at Richmond, first race since wife Lynda’s death 1
- NASCAR VP: 2015 Sprint Cup engine package to be revealed before All-Star Race 0
- Too much, too fast, too soon: The sad saga of Swan Racing 0
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