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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.

IMSA: Landy, Boehm score first career CTSC poles at VIR

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Landy/Ecklin. Photo courtesy of IMSA
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Sebastian Landy (GS) and Kevin Boehm (ST) won their first career poles for the Continental Tire SportsCar Challenge Oak Tree Grand Prix at VIRginia International Raceway; the latest two-hour, 30-minute race takes place on Saturday.

Landy, a veteran of IMSA Porsche GT3 Cup Challenge USA by Yokohama and Battery Tender Mazda MX-5 Cup action, makes his GS class debut and promptly stuck the No. 99 Automatic Racing Aston Martin Vantage he’ll share with Rob Ecklin on the GS pole, with a best time of 1:56.929 on the 3.27-mile road course.

“[Track experience] helped a little bit but I have to thank everyone at Automatic Racing,” the local driver out of Great Falls, Va. told IMSA Radio’s Shea Adam. “I’ve always wanted to race in GS. It’s a great day to start on pole for your first race. If I wasn’t as sloppy as I was, there could have been more!”

Danny Burkett starts the No. 33 CJ Wilson Racing Porsche Cayman GT4 Clubsport he shares with Marc Miller in second, with the pair of Ford Shelby GT350R-Cs from Multimatic Motorsports and Compass360 Racing (the latter repaired after its Road America accident) on Row 2.

Honda has a 1-3 start in the ST class with Columbus, Ohio’s Boehm taking the No. 92 HART Honda Civic Si to the top spot at 2:04.660. He’ll share that car with Cameron Lawrence while the team’s No. 93 car, qualified by Chad Gilsinger who shares with Ryan Eversley, will start from third.

The No. 84 Bimmerworld BMW 328i (James Clay, Tyler Cooke) slots in-between the pair.

Qualifying results are linked here.

The second IMSA WeatherTech SportsCar Championship practice of the day at a hot VIR was less eventful than the morning session when the roof popped off the No. 25 BMW Team RLL BMW M6 GTLM of Dirk Werner.

Corvette Racing came to the fore in second practice with the No. 3 Corvette C7.R of Antonio Garcia and Jan Magnussen top of the charts in GT Le Mans and overall. In GT Daytona, the No. 48 Paul Miller Racing Lamborghini Huracán GT3 (Madison Snow and Bryan Sellers) was quickest one.

Practice results from the day are linked below.

Practice 1
Practice 2

Stewards confirm Alonso, Ericsson grid drops for Belgian GP

SPA, BELGIUM - AUGUST 26: Fernando Alonso of Spain driving the (14) McLaren Honda Formula 1 Team McLaren MP4-31 Honda RA616H Hybrid turbo on track during practice for the Formula One Grand Prix of Belgium at Circuit de Spa-Francorchamps on August 26, 2016 in Spa, Belgium.  (Photo by Mark Thompson/Getty Images)
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Formula 1 race stewards at Spa have confirmed that Fernando Alonso and Marcus Ericsson will join Lewis Hamilton in taking a grid drop for this weekend’s Belgian Grand Prix.

Following the conclusion of the summer break, teams are now beginning to get tight on their power unit component allocations for the remainder of the season.

Each car is limited to just five of each power unit component for the season, with penalties being awarded for exceeding this limit.

After being forced to make unplanned changes earlier in the season, Hamilton took two complete new power units on Friday at Spa, meaning he will almost certainly start the Belgian Grand Prix from the back of the grid with a 30-place drop.

Hamilton won’t be the only driver to drop back, though. The FIA stewards confirmed on Friday that both Alonso and Ericsson had also been forced to make changes, resulting in penalties for both drivers.

Alonso has a 35-place grid penalty looming over him after taking a whole new power unit. The Spaniard was already on the limit of five of each component heading to Spa, making the penalty more severe than Hamilton’s.

Ericsson has taken a new turbocharger, his sixth, meaning he receives a 10-place grid penalty. For each of the remaining ‘sixth’ elements the Sauber driver takes over the rest of the season, he will drop a further five places.

Qualifying for the Belgian Grand Prix will settle matters at the front of the grid, but at the rear, it will very much be a case of ‘wait and see’ once all of the penalties are confirmed on Sunday morning.

You can watch qualifying from Spa live on the NBC Sports app from 8am ET on Saturday.

Button ‘almost there’ on deciding Formula 1 future

SPA, BELGIUM - AUGUST 26: Jenson Button of Great Britain and McLaren Honda sits in his car in the garage during practice for the Formula One Grand Prix of Belgium at Circuit de Spa-Francorchamps on August 26, 2016 in Spa, Belgium.  (Photo by Mark Thompson/Getty Images)
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Jenson Button says he is “almost there” on deciding his future in Formula 1 as McLaren continues to deliberate its driver line-up for 2017.

Button is the most experienced driver currently racing in F1, and has been with McLaren since 2010.

Fernando Alonso is set to remain with McLaren for next season, but the team is yet to decide whether it will retain Button or promote junior driver Stoffel Vandoorne into a full-time seat.

Button has been linked with a return to Williams – the team he made his F1 debut with in 2000 – should McLaren drop him.

The 2009 F1 world champion is yet to decide whether or not he will continue in F1 next year, but feels he is close to a decision.

“I am almost there with my thought process and you will hear about it soon. I can’t put a timescale on it, but it will be soon enough,” Button told Press Association.

“I did think about it lot [over the summer]. I didn’t have a lot of time to lie on a sun-lounger and think about it to be fair.

“I was busy, but yes, of course, I thought about it.”

Button’s last race win came at the end of 2012 with McLaren, and has not finished on the podium since the start of 2014 thanks to difficulties with the team’s Honda engine last year.

Although McLaren is on the rise, Button stressed that he wants to be in a car that is capable of battling at the front of the pack in 2017.

“I have always said that if I feel like I can be in a car that is fighting for wins I will definitely stay. I think any racing driver would,” Button said.

“But if I am not and I feel like I am not, there is nothing else for me to achieve. I will go and play darts instead.

“I can’t just sit on the beach. I will do all sorts of racing after F1 whether it is in racing cars, push bikes, or triathlons because I am a competitive person and I always want to win.

“So, that is what I want to do. Something I can fight for wins in.”

Button has been linked with a move into the FIA World Endurance Championship should he decide to call time on his F1 career, and is also likely to take up rallycross in some form, following in the footsteps of his father, John.

A roof popped off a BMW M6 GTLM in IMSA’s VIR first practice

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Photo courtesy of IMSA
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First practice for this weekend’s Michelin GT Challenge, a GT Le Mans and GT Daytona-only round of the IMSA WeatherTech SportsCar Championship at VIRginia International Raceway is in the books.

Fastest times were set by Earl Bamber in the No. 912 Porsche North America Porsche 911 RSR (1:43.232, GTLM and overall) and Madison Snow in the No. 48 Paul Miller Racing Lamborghini Huracán GT3 (1:45.722, GTD).

Bamber told IMSA Radio’s Shea Adam, “It’s a good way to start the weekend. It’s a new surface; it already seems quicker than last year. The guys at VIR have done a great job to repave it. It’s been pretty difficult the last couple races for us.”

But the session was more notable because it featured a weird interruption, when the roof off the No. 25 BMW Team RLL BMW M6 GTLM popped off on course.

It left Dirk Werner needing to bring the car, sans the roof and rear window, into the pit lane but luckily without further damage following the inadvertent convertible debut of the car.

Werner’s befuddled co-driver, Bill Auberlen, attempted to explain the situation to Adam.

“I’m telling you… I’m dying to ask if it was cooler inside the cockpit!” Auberlen told IMSA Radio, noting how hot it is on track, as well (ambient temperatures are expected in the mid-90s with track temperatures in the 110-115 range).

“So no, we did not plan on this. This is very odd. It’s bizarre how the roof would blow off the thing.

“I went in the grass once. Couldn’t get the downshfits accomplished. Now this. Maybe we get all the troubles out now.

“But now the roof blew off? No idea how, it’s just bad luck.”

Here’s pics and a few tweets about the abnormal incident: