What’s it cost to compete in Formula One? An IndyCar comparison

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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.

TOTAL BUDGET
Top F1 team: $470 million; Top IndyCar team: $15 million

This includes the following key areas of spending:

THE CAR
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.

THE ENGINES
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.

TESTING
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.

DRIVERS
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.

ENTRY FEE
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.

HOSPITALITY
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.

KEY SUPPLIES
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.

OTHER
Top F1 team: $136.7 million; Top IndyCar team: $3.5 million

*Includes salaries, travel and factory costs.

Alonso’s Honda power unit cleared for Malaysia after Singapore clash

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Fernando Alonso’s incredible start at the Singapore Grand Prix offered the possibility of huge points, before he got collected at Turn 1 in the wake of the Kimi Raikkonen, Max Verstappen and Sebastian Vettel start-line crash.

But with Alonso’s McLaren Honda getting speared on the left side of the car, there were concerns his Honda power unit had been damaged beyond repair ahead of this weekend’s Malaysian Grand Prix.

Somewhat fortunately considering the fractured and now set-for-divorce Alonso, McLaren and Honda relationship, Honda has confirmed this power unit was actually OK despite the first lap contact in Singapore.

“We were concerned that it may have been irreparably damaged, but fortunately after a thorough check back at the Sakura factory we can confirm it is okay to be re-used,” said Yusuke Hasegawa, Honda R&D Co. Ltd Head of F1 Project & Executive Chief Engineer.

Alonso, of course quite frustrated to have lost out on a potential big points haul in Singapore, is hoping similarly changeable conditions could give McLaren Honda a spark in Malaysia this weekend. Stoffel Vandoorne fortunately picked up six points for the team with seventh place there, his best result of the season and his career thus far.

“After Singapore, I’m already eager to get back into the car and hopefully make it further than the first corner in Malaysia! Of course, what happened was disappointing and it’s difficult to hide your frustration when you’re the victim of someone else’s incident. I felt we had the potential to be really competitive – one of our only opportunities of the year – and it’s a shame we couldn’t bring home the points to prove it, but these things happen,” he said.

“The conditions in Malaysia will be very similar to Singapore – hot, humid and challenging for the drivers and the car. The configuration will work less in our favor, but of course we will still fight for everything. There are six races left and we are still putting all our energy in finishing every race in the best possible position we can.”

Aston Martin to become Red Bull Racing’s title sponsor

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The link-up between Aston Martin and Red Bull Racing has now gone to the next level, with Aston Martin confirming Monday it will be Red Bull Racing’s title sponsor from 2018.

Key within the release was also the suggestion that Aston Martin will “evaluate the opportunity to be involved in the team’s power unit from 2021 after being asked by the FIA to join discussions on future engines for F1.”

Red Bull Racing’s engine situation is unclear after 2018, with Renault – badged as TAG Heuer – in the last planned year of its deal next season. Honda has entered the Red Bull racing umbrella thanks to its new deal with Scuderia Toro Rosso from 2018, and rumors of Porsche’s return to Formula 1 from 2021 have also swirled in recent weeks.

Rather funnily this means in 2018 that Red Bull Racing will have a car manufacturer be title sponsor for the energy drink company, with a watch manufacturer serving as the badged name of its power unit.

“Title partnership is the next logical step for our Innovation Partnership with Red Bull Racing. We are enjoying the global brand awareness that a revitalized Formula One provides,” said Aston Martin President and CEO, Andy Palmer.

“The power unit discussions are of interest to us but only if the circumstances are right. We are not about to enter an engine war with no restrictions in cost or dynamometer hours but we believe that if the FIA can create the right environment we would be interested in getting involved.”

Christian Horner, Red Bull Racing team principal, added: “Our Innovation Partnership with Aston Martin has been a pioneering project from day one. Having conceived and created the remarkably successful Valkyrie together in 2016, we extended our relationship this year and are now delighted to further strengthen the Partnership and see the team competing as Aston Martin Red Bull Racing in 2018. In addition, more than 100 Aston Martin staff will service the new Advanced Performance Centre on our campus here in Milton Keynes and it will allow us to collaborate further with Aston Martin on special, equally innovative, new projects.”

The Aston Martin Valkyrie, the hypercar produced by the two parties, has been their major product sign of investment together thus far. Per Aston Martin the car has sold out on launch, and will make its road debut in 2018 before being delivered to customers in 2019.

Personnel wise, the two parties have worked together to create the Advanced Performance Centre, which will create more than 100 new jobs and continue to build the relationship between F1 and road car technology.

NHRA: Brittany Force breaks through among Reading winners

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John Force saw one of his daughters break through in the Reading round of the NHRA Mello Yello Drag Racing Series’ Countdown while another lost by a hair in the finals.

Brittany Force captured the Top Fuel win, her second of the season, for her first since in Epping, N.H. in June. The defeat of Steve Torrence came with a 3.756-second pass at 326.24 mph. She’d been to the finals twice at Maple Grove Raceway before winning Sunday.

“Looking at it, we did not have an easy ladder,” Force said. “It was tough all day long and the Monster team killed it all day long. We turned a corner at the right time and we’re right in the Countdown picture.

“This is a huge win for us. This team had to fight all day long and I’m so proud of them. They are the best team to work with, and I’m so pumped going into the Countdown to work with them. This Monster team, we’re going after the championship.”

Courtney Force came up short in Funny Car, losing out to Ron Capps, who secured his seventh win of the season. Capps’  pass came at 3.968 seconds to Force’s 3.993, and Capps took over the points lead in the process.

“We got lucky a little bit in the first round, but we feel like our hard work makes our own luck for us and we were fortunate to win it with consistency,” Capps said, via NHRA.com. “We know this Funny Car class is as tough as it’s ever been, so we know this won’t be easy through the last four races of the year.”

Bo Butner (Pro Stock) and Eddie Krawiec (Pro Stock Motorcycle) took the other two class wins on the day.

IMSA: Dramatic finishes, popular winners at Mazda Raceway

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The penultimate round of the IMSA WeatherTech SportsCar Championship season at Mazda Raceway Laguna Seca featured three first-time winners this year in the Prototype, GT Le Mans and GT Daytona classes – all of whom boast fascinating stories.

In Prototype and overall, Renger van der Zande and Marc Goossens delivered the first overall win of the year for an LMP2-spec car versus a Daytona Prototype international (DPi), and after a dramatic week for the Troy Flis-led VISIT FLORIDA Racing team.

Van der Zande and Goossens were only in their second race start with the team’s new No. 90 Ligier JS P217 Gibson, which replaced the troublesome Riley Multimatic Mk. 30 chassis run through Canadian Tire Motorsport Park in July.

Running second into the final few minutes of the two-hour, 40-minute race, van der Zande unleashed his inner Alex Zanardi at Mazda Raceway’s iconic corner, the Corkscrew, going down the inside of Penske Acura-bound Dane Cameron in his second-to-last race with Action Express Racing aboard its No. 31 Whelen Engineering Racing Cadillac DPi-V.R.

Cameron left the door open just enough for van der Zande to slide through, with his momentum carrying through the inside of the left-handed downhill apex and then back onto the right-handed second portion of the corner in line.

He pulled away from there en route to the team’s first victory of the year at a track where it had won before, as recently as two years ago with Richard Westbrook and Michael Valiante in a Corvette DP.

The win comes after a week when the Florida-based team, with the likelihood of change to its partner portfolio if VISIT FLORIDA support doesn’t continue into 2018, incurred damage at its shop from Hurricane Irma. Van der Zande joked on the FOX Sports broadcast after the race he might get a tattoo of the Corkscrew after the win.

With third place in their No. 10 Konica Minolta Cadillac DPi-V.R, Jordan and Ricky Taylor built their points lead to an unofficial gap of 29 points over Cameron and Eric Curran, the defending champions, with one race remaining. The Taylors will be set to clinch the Prototype title at Motul Petit Le Mans by starting the race, on October 7.

The GT classes featured two other cool stories and maiden 2017 winners.

In GT Le Mans, John Edwards broke a long winless drought sharing his No. 24 BMW M6 GTLM with Martin Tomczyk, in the revised black livery for the BMW Team RLL car. Edwards held off Toni Vilander in the No. 62 Risi Competizione Ferrari 488 GTE at the flag, on a fuel save run.

The No. 911 Porsche 911 RSR was third ahead of the No. 3 Corvette C7.R, with points leaders Antonio Garcia and Jan Magnussen set to carry a 19-point lead over Westbrook and Ryan Briscoe in their No. 67 Ford Chip Ganassi Racing Ford GT heading to Motul Petit Le Mans.

GT Daytona points leaders Alessandro Balzan and Christina Nielsen, in their anticipated second-to-last race together in the No. 63 Scuderia Corsa Ferrari 488 GT3 this year (Nielsen told RACER over the weekend she’ll leave the team at year’s end, following the end of her two-year contract), finally got on the board this year after a wealth of podiums but no wins.

Balzan moved into the lead following Colin Braun’s late splash for fuel, which denied the No. 54 CORE autosport Porsche 911 GT3 R lineup of Braun and Jon Bennett a potential first win in class.

Balzan and Nielsen have a 25-point lead over Jeroen Bleekemolen in GTD – Bleekemolen and Ben Keating finished eighth today in their No. 33 Riley Motorsports-Team AMG Mercedes AMG-GT3 – and are poised to wrap their second straight class title at Motul Petit Le Mans.

RESULTS