AUTO-PRIX-F1-SPAIN-PRACTICE

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

23 Comments

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.

Friday at Mid-Ohio: A busy day before rain stops play

04CJ4223A
Photo: IndyCar
Leave a comment

LEXINGTON, Ohio – There are a lot of things to like about combined Verizon IndyCar Series/Mazda Road to Indy Presented by Cooper Tires/Pirelli World Challenge weekends, primarily the variety of content on track and the flurry of non-stop action from dawn to dusk.

One of the things not to like, though, is the sheer volume of things that come out of each of the three – and when you cover each of the three regularly, it’s easy to get behind.

That being said, here’s an attempt to recap all that’s taken place here today:

INDYCAR

  • There were two practice sessions as noted (Scott Dixon led first practice, Will Power second), although the second one ended early due to rain (I blame myself following my run back from the IndyCar Radio booth…).
  • Have to give a shoutout to rookie RC Enerson, who was seriously impressive in his first full official day at the office. Enerson took what he learned from the test day last week with Dale Coyne Racing and was even more comfortable. He’ll have to adapt to the Firestone red alternate tires in qualifying tomorrow – it’s something that challenges even veterans – but he’s impressing the team with how much he’s taken in that’s getting thrown at him. Seventh in practice is remarkable; we’ll see how well it translates tomorrow.
  • There were also a couple media availabilities during the day. The first was Graham Rahal, defending race winner, for Rahal Letterman Lanigan Racing. We’ll have more on this in the coming weeks, but Rahal made a couple interesting points. One, he addressed the Target departure – he had a sense this day would come even going back to when he was a member of Chip Ganassi Racing Teams in 2011 and 2012 – but said partners are out there, they just need to be found. He also noted how having only one car has hurt RLL this year, given the volume of in-season testing, and the relative lack of data gathered compared to four-car mights from Team Penske, Ganassi and Andretti Autosport. Last year, without that same amount of in-season testing,
  • The Target bit dovetails nicely, perhaps, into Scott Dixon and Chip Ganassi’s media availability – the first for the two since the announcement earlier this week that Target would end its IndyCar relationship with Ganassi after 27 years. Ganassi, who did most of the talking in the 20-plus minute gathering, dismissed the idea that this was an IndyCar-related decision or a TV-related decision. He said it was a pure business decision and that he has nothing but praise for Target for all they’ve done for his team, and by default, the sport of IndyCar racing on the whole. More to follow from this availability in the coming days.
  • We mentioned Honda’s “Christmas in July” camping theme earlier? Now, there’s Santa hats to match
  • Our social team was busy; Conor Daly did a Twitter takeover on the @IndyCaronNBCSN feed (you can view that here; here’s Daly saying thanks), and Rahal also did a Facebook Live video (available to view here).
  • Two memorials were held to celebrate the lives of two amazing women. The first was for NBCSN pit producer Jenny Nickell this morning at the IndyCar Paddock Club (watch video produced by Taylor Rollins, narrated by Bob Jenkins here). The second was at Honda hospitality for Brenda McHale, wife of veteran Honda PR man T.E. McHale, who died earlier this year. T.E. is one of the true gems in the IndyCar paddock and it was great to see the outpouring of support from the community at both events, which were overflowing despite the small tent sizes.

MAZDA ROAD TO INDY PRESENTED BY COOPER TIRES

  • The busiest series of the three today was the Cooper Tires USF2000 Championship Powered by Mazda, which held both qualifying and its first race of the weekend. Australian Anthony Martin won both sessions for Cape Motorsports with Wayne Taylor Racing, the latter coming with a pivotal swing in the championship – a cut tire resigned his teammate and prior points leader Parker Thompson to 17th. Martin went from 20 down to nine up going into Saturday’s race two of three this weekend. Victor Franzoni (ArmsUp Motorsports) and Luke Gabin (JAY Motorsports) completed the top three finishers, ahead of Jordan Lloyd and Dakota Dickerson.
  • Pro Mazda Championship Presented by Cooper Tires also got in two sessions, practice and qualifying. Nico Jamin (Cape Motorsports with Wayne Taylor Racing) has the pole for the first of two races this weekend, courtesy of a new track record (1:18.138) that beats a 10-year-old mark of 1:18.300 set by Ryan Justice in 2006! Aaron Telitz qualified second with Pato O’Ward, his Team Pelfrey teammate, only fifth.
  • The Indy Lights Presented by Cooper Tires only got one practice in with its second session scrubbed due to rain. In the first and only session, Santiago Urrutia (Schmidt Peterson Motorsports led from Shelby Blackstock, with Ed Jones and Dean Stoneman only sixth and eighth. They qualify and have their first race tomorrow.

PIRELLI WORLD CHALLENGE

  • Owing to the rain and the fact they were scheduled when they were, the only session of the day was GTS qualifying from 12:15 to 12:45 p.m. ET. Both GT practice and the GTS first race were scrubbed due to the rain; they were set to run from 4:15 to 4:45 and 5 to 6 p.m. ET, respectively.
  • Here’s how GTS will work: Saturday’s now considered second race of the weekend will be run using today’s GTS qualifying times and be a standing start. The postponed race will be a makeup round at Mazda Raceway Laguna Seca and feature a fresh qualifying, making that finale now a tripleheader.
  • The other big news of the day? The provisional 2017 schedule is out, and the word “provisional” cannot be stressed enough. The determination of which classes have which drivers, which races fall under Sprint versus Sprint X designation, and which races are standalones versus on IndyCar weekends will all be further explained in the days to come. This release comes on the heels of the SRO announcing its 2017 schedules at the Total 24 Hours of Spa weekend (release here, calendars here).
  • With GT practice scrubbed, so too is the opportunity for fans and onlookers here to see the new Acura NSX GT3 – tested by Peter Kox this weekend – on track in practice. The car remains on display throughout the weekend and a photo opportunity will come on Saturday morning.

Buemi set for first F1 test in two years next week with Red Bull

LONDON, UNITED KINGDOM - JULY 3:  In this handout image supplied by Formula E The Podium.
Sebastien Buemi (SUI), Renault e.Dams Z.E.15. during the London Formula E race on JULY 3, 2016 in Battersea Park, London, United Kingdom. (Photo by Adam Warner/LAT/Formula E via Getty Images)
© Getty Images
Leave a comment

Formula E champion Sebastien Buemi will enjoy his first Formula 1 test in over two years next week when he represents Red Bull in the latest Pirelli tire evaluation runs ahead of the 2017 season.

Buemi raced for Red Bull’s junior team, Toro Rosso, between 2009 and 2011 before being dropped to make way for Daniel Ricciardo and Jean-Eric Vergne.

Red Bull kept ties with Buemi, hiring him as the team’s test and reserve driver, a role he continues to enjoy in tandem with commitments in the FIA World Endurance Championship and Formula E.

His last F1 test came with Red Bull following the Spanish Grand Prix in 2014, and also completed a filming day for the team in Barcelona last year.

The Swiss driver won the second Formula E title in London at the beginning of the month with Renault e.dams, and is now set to get back behind the wheel of an F1 car as part of the ongoing evaluation of Pirelli’s new tires for 2017.

Buemi will get behind the wheel of a ‘mule’ car – a modified RB11 used in the 2015 season – and try out the wider tires on Wednesday and Thursday at Mugello, as confirmed by Red Bull’s chief engineer Paul Monaghan on Friday.

Red Bull, Ferrari and Mercedes have already conducted testing to evaluate the new compounds for 2017, but the wider treads will first hit the track on Monday.

Sebastian Vettel will complete the first day of testing with Ferrari at Fiorano, followed by Esteban Gutierrez on Tuesday before Buemi’s stint at Mugello.

Lowe: Hamilton’s reaction to yellow flag saga in Hungary ‘regrettable’

HOCKENHEIM, GERMANY - JULY 28:  Lewis Hamilton of Great Britain and Mercedes GP talks to the media during previews to the Formula One Grand Prix of Germany at Hockenheimring on July 28, 2016 in Hockenheim, Germany.  (Photo by Charles Coates/Getty Images)
© Getty Images
Leave a comment

Mercedes Formula 1 technical chief Paddy Lowe believes that Lewis Hamilton’s reaction to the yellow flag saga in qualifying for the Hungarian Grand Prix was “regrettable”.

Hamilton was denied pole in Hungary after Mercedes teammate Nico Rosberg beat his time with the final lap of Q3, despite completing part of it under yellow flags.

Hamilton told NBCSN on Thursday in Germany that the saga had set a precedent for drivers to follow in the future, and believes it could cause safety issues in the future.

Reports over the Hungarian Grand Prix weekend claimed that Hamilton went to FIA race director Charlie Whiting and asked him to investigate Rosberg’s lap.

On Friday, Lowe said he believes Hamilton did go and see Whiting after qualifying to seek clarity regarding yellow flag rules, not to try and get his teammate stripped of pole.

“It’s my understanding that Lewis did go and see Charlie but it wasn’t in any way to seek a review of Nico’s lap,” Lowe said.

“It was for his own understanding of what should be done in the future, how that should work for him in the future.

“I think that was regrettable. Personally, he should have kept to advice from the team and we can obtain that from Charlie as necessary.

“But I don’t think there was any harm done. It was just a misjudgement from that point of view.”

Whiting confirmed on Friday that if double waved yellow flags are shown during qualifying from now on, the session will be red flagged immediately to prevent a repeat of the saga from Hungary.

Power leads before it pours in Mid-Ohio second practice

16C_4909-1
Photo: IndyCar
Leave a comment

LEXINGTON, Ohio – Will Power topped the timesheets before the rains hit the Mid-Ohio Sports Car Course in the second 75-minute Verizon IndyCar Series practice of the day – albeit only 45 of which was run before the Mid-Ohio circuit turned into a water park.

Times descended a bit from the morning’s 1:04.4 best lap achieved by Scott Dixon in the No. 9 Target Chip Ganassi Racing Chevrolet. Power clocked in a 1:04.1962 in the No. 12 Verizon Team Penske Chevrolet this session at the 2.258-mile road course.

Power was one of 16 drivers in the 1:04 bracket, an improvement upon the morning session when only the top 11 were in the 1:04 range.

There were no incidents of note other than a couple off course excursions before the rains hit.

Videos of the session are below:

Team Penske waits out the rain

Josef Newgarden and his recovery from his hand injury

Alexander Rossi returns to another familiar track

Times are below.

MidOFP2