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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.

Tony Kanaan woos IMS after positng fastest Carb Day lap

INDIANAPOLIS, IN - MAY 27:  Tony Kanaan of Brazil, driver of the #10 Chip Ganassi Racing Chevrolet Dallara, practices during Carb Day ahead of the 100th running of the Indianapolis 500 at Indianapolis Motorspeedway on May 27, 2016 in Indianapolis, Indiana.  (Photo by Jamie Squire/Getty Images)
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“I think this track will pick the winner,” Tony Kanaan told reporters Friday after Carb Day practice was completed for the 100th Indianapolis 500 presented by PennGrade Motor Oil.

“So I’m trying to massage the track a little bit, talk to her nicely, and then see if she will pick me on Sunday.”

Kanaan certainly impressed the 2.5-mile ‘lady’ in practice, by posting a fastest lap of 226.280 mph that would seem to have her shunning all other suitors. Carlos Munoz set the second-fastest speed, but he was nearly a quarter of a second per lap slower with a speed of 224.772 mph.

Speeds were largely dependent on tows in the final tune-up for Sunday’s race.

All 33 drivers who qualified for the 100th running of the Indy 500 tried their dead-level best to impress the track. They raced side-by-side through the corners and filled the course with cars. For most of the session, a majority of the drivers were on course at the same time, and that surprised many.

“You should have asked me, I would have told you different,” Kanaan said.

“This is the closest we get to the race, two days, and after being here for almost a month, the engineers come up with different plans every day,” Kanaan added. “The more time you give them, the more they come up with stuff. And we had almost five days without being on track, so they go back to the shop and do simulations. So we had to test.”

Race conditions will be markedly different than what everyone faced in qualification and that is another reason so many cars were on track. It is also one reason Kanaan was so pleased with his time.

If a full field had not practiced, no one would truly know what they would face on Sunday. “Everybody is eager to feel how the car behaves in traffic. So it was a race out there today.”

Kanaan was pleased with the response he got from Indy.

“I’m happy with my car,” Kanaan said. “Obviously I have to pass 17 people before I get really happy with my car. But, you know, after the struggle in qualifying, we really focused on the race.”

Kanaan will start 18th, alongside Juan Pablo Montoya and close behind some other top-ranked drivers.

“One thing that eases my mind a little bit being back there, there are a lot of good guys back there with me,” Kanaan added. “You know, if you look around Montoya, Charlie Kimball, Scott Dixon, they’re very experienced guys back there, which sometimes it’s not the case.”

“So I really don’t have a plan. My plan is to start the race. If there is a gap, I’m going to go for it.”

Indy occasionally rewards spontaneity, so Kanaan’s fastest speed in final practice may be a strong indication of his odds of winning his second Indy 500. His first victory came in 2013.

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When Townsend Bell and Mario Andretti made pizza (VIDEO)

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Before the 100th Indianapolis 500 presented by PennGrade Motor Oil kicks off on Sunday, Townsend Bell and Mario Andretti tossed around a couple pizzas.

Bell, the NBCSN IndyCar analyst who starts fourth in the No. 29 California Pizza Kitchen/Robert Graham Honda, has easily his best shot to win the Indy 500 in his 10th attempt.

He’s part of the five-car Andretti Autosport armada along with Carlos Munoz, Marco Andretti, Ryan Hunter-Reay and Alexander Rossi.

Stoneman edges Jones in closest finish ever at IMS in Freedom 100 (VIDEO)

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INDIANAPOLIS – No words other than “wow” to summarize the immediate aftermath of the Indy Lights Presented by Cooper Tires’ Freedom 100 at Indianapolis Motor Speedway.

At a race that had two incredible photo finishes in 2013 and 2014, another one occurred Friday with Dean Stoneman edging Ed Jones by just 0.0024 of a second.

“As you can see on the screen now it was bloody close,” Stoneman said from Victory Lane after driving the No. 27 Stellrecht Dallara IL-15 Mazda for Andretti Autosport.

It’s the closest finish in Indianapolis Motor Speedway history with Stoneman having led the field to the green on the last lap, but lost the lead at Turn 1 when Jones around the outside, before Stoneman got past him through Turn 3 and stayed ahead.

The Andretti Autosport driver then edged the Carlin driver at the line, fist in the air for his second win at IMS in three weeks, after also winning on the Indianapolis Motor Speedway road course.

“It’s great. I was in a hospital bed five years ago dreaming to be racing here and winning now,” Stoneman added.

“First [win] ever here for this race,” said Michael Andretti, car owner. “We’re so excited. We’ve been trying so many years to win this and Dean finally brought it to us.”

“It’s so frustrating to lose the race like that,” said second-place finisher Jones. “We were back and forth throughout the race and all the time I was waiting behind Dean for those last few laps. He held up everyone really slowly on that restart and caught quite a few incidents.”

“I got the lead in turn one and I thought I had the good run and I was pulling away but he had the draft down the back straight and I made the decision to stay on the inside,” Jones added, “He got the momentum on the outside and he just beat me to the line. It was so close and the team did a fantastic job of giving me the car to win the race.”

“That minor mistake just cost me everything.”

Previous closest finishes were 0.0026 of 2013 when Peter Dempsey won, and 0.005 of a second when Gabby Chaves won.

In third place, Dalton Kellett scored a career-best result in the No. 28 K-LINE car for Andretti Autosport, with Shelby Blackstock and Scott Hargrove completing the top five finishers.

F1 still Maldonado’s ‘Plan A’ as he chases race comeback

SINGAPORE - SEPTEMBER 18:  Pastor Maldonado of Venezuela and Lotus drives during practice for the Formula One Grand Prix of Singapore at Marina Bay Street Circuit on September 18, 2015 in Singapore.  (Photo by Clive Rose/Getty Images)
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Pastor Maldonado remains hopeful of returning to a Formula 1 race seat in the future, but is open to other series if his “Plan A” fails to come to fruition.

Maldonado lost his drive with Renault over the winter when his backing from Venezuelan state oil company PDVSA fell through.

Since then, the one-time grand prix winner has completed some private testing for tire supplier Pirelli, but is keen to make a racing return next season if possible.

“We will try again and try to be back in a good team, to give me the chance to be competitive,” Maldonado told Reuters in Monaco.

“Plan A is Formula 1. Then of course if it doesn’t come, we need to look around.”

Despite the financial and social problems facing Venezuela right now, Maldonado hopes that PDVSA can find the funding to resume his F1 career.

“PDVSA is a big company, supporting a lot of sport programmes in Venezuela,” Maldonado said.

“They still seem to maintain all the programmes. Hopefully it will be no problem to have them back.

“I am the only Venezuelan who is racing at this level. I have been supported since many, many years. The relationships are very good. Hopefully we can be together for more years.

“Of course the oil price is still a bit low, and when the oil is down, the country is down. For sure it’s painful at the moment.”