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.

NASCAR America: Scott Speed’s quest for Red Bull GRC three-peat

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Red Bull Global Rallycross points leader Scott Speed is going for his third consecutive championship next month (Saturday, October 14, 4:30 p.m. ET, NBC from Los Angeles) for the Volkswagen Andretti Rallycross team.

Prior to that, he joined Thursday’s edition of NBCSN’s NASCAR America, checking in with his former Red Bull Racing teammate Brian Vickers, show host Carolyn Manno and analyst Steve Letarte.

Speed talked teammate dynamics – he and Tanner Foust have been the class of the Red Bull GRC field for several years – and what it takes to succeed in the diverse championship that features racing on both pavement and dirt.

“Tanner comes from more of a more rally background and I come from more of an open-wheel, road course background,” Speed explained. “You have to meet in the middle and often times that creates success. Our personalties are polar opposites and that’s a good thing.”

One other thing Speed addressed was Austin Cindric’s couple notable incidents in the last month or so. Going for his maiden NASCAR Camping World Truck Series win, Cindric hit Kaz Grala at Canadian Tire Motorsport Park to move for the lead and ultimately the win.

Cindric then made his GRC Supercars debut at the most recent weekend in Seattle and the two collided after a miscommunication in a preliminary race, prior to the Joker section of the course.

“He’s a young kid with not a lot of experience. He’s made a couple big mistakes. He came in like a wrecking ball,” Speed laughed.

“I was more mad because the car couldn’t restart at first. But it did, and we got going.”

Public clashes over future of Detroit Grand Prix

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DETROIT (AP) State officials are deciding whether to continue hosting the Detroit Grand Prix on Belle Isle, a state park and island that opponents say is negatively impacted by the annual event.

The Michigan Department of Natural Resources is considering whether to allow the race to continue after its current five-year contract expires after the 2018 race.

The department held a public meeting Wednesday at the Belle Isle Nature Center to gather feedback. Dozens of residents attended.

Opponents voiced concerns about the race’s environmental impact. Several conservation groups have requested a third-party environmental impact study on how the race affects island habitat.

But supporters say the race shines a spotlight on Detroit and stimulates the economy.

The Grand Prix has occurred on Belle Isle periodically since 1992 and annually since 2012.

FIA confirms Halo crash test details, International F3 plans and more

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Following the latest meeting of the FIA World Motor Sport Council in Paris, France, a number of updates concerning the championships under the governing body’s umbrella for 2018 had been confirmed.

The stand-out news was the confirmation of a Formula E race in Zurich for June 2018, marking motorsport’s return to Switzerland after being outlawed back in 1955.

A number of tweaks have also been made to the FIA Super Licence points allocation from next year, placing a greater onus on drivers to race in Formula 2 before stepping up to Formula 1.

Here’s a run-down of all the other news from the WMSC’s meeting in Paris.

FORMULA 1

Following the F1 Strategy Group’s approval of ‘Halo’ cockpit protection being introduced to F1 from 2018, the WMSC gave its approval to the required updates in the technical regulations to allow its implementation.

The various technical details can be found in the regulations by clicking here (under Article 17), but the key point is that teams will now be able to finalize their chassis designs for 2018 now they know the crash test details.

The WMSC also confirmed that Sentronics will be the exclusive supplier of fuel flow meters in F1 for 2018 and 2019.

There is also a clampdown on oil burn in F1 for 2018 following the controversy with Mercedes and Ferrari in 2017, as well as continued plans to ban the ‘shark fin’ from next year’s regulations.

One point we already knew but is nevertheless of interest is the reduction in power unit elements permitted to each driver per season. As of 2018, each driver will be limited to just three internal combustion engines, three MGU-Hs, three turbochargers, two control electronics and two MGU-Ks per season, down from four for each element in 2017.

No updates were made to the F1 calendar for 2018, but Bahrain and China are tipped to switch places, the latter becoming the third round of the season.

INTERNATIONAL FORMULA 3

The WMSC confirmed plans to form an International Formula 3 series in 2019 in a bid to complete the pyramid from Formula 4 to F1.

Both the FIA European F3 and GP3 Series co-exist as the third rung on the single-seater ladder at the moment, with the international championship tipped to replace the latter.

The WMSC called for expressions of interest for chassis and engine suppliers for an international series, as well as a promoter.

Loose regulations have also been formed that are similar to GP3’s current rules, with a 24-car grid desired over a nine-to-10 round season featuring single-make chassis, engines and tires.

The FIA is also pushing to create more regional F3 series in the future to bridge the gap between F4 and International F3.

FIA WORLD ENDURANCE CHAMPIONSHIP

Following confirmation of Silverstone’s return to the 2018/19 ‘super season’ calendar last week, the WMSC ratified the schedule for the next WEC campaign that will last 13 months.

The technical regulation amendments for 2018 were also approved as part of the WEC’s bid to attract more manufacturers to the LMP1 class following Porsche’s shock exit.

“The FIA Endurance Commission was also encouraged to pursue a number of exciting and innovative proposals that it is currently working on, with the aim of enticing new manufacturers to the Championship,” part of the WMSC’s release reads.

FIA WORLD RALLY CHAMPIONSHIP

The FIA confirmed its calendar for the 2018 WRC season, with the addition of a rally in Turkey being announced in place of Poland.

1. Rally Monte Carlo – January 28
2. Rally Sweden – February 18
3. Rally Mexico – March 11
4. Tour de Corse – April 8
5. Rally Argentina – April 29
6. Rally de Portugal – May 20
7. Rally Italia – June 10
8. Rally Finland – July 29
9. Rally Germany – August 19
10. Rally Turkey – September 16
11. Rally Great Britain – October 7
12. Rally Spain – October 28
13. Rally Australia – November 18

To see the full release from the WMSC, click here.

FIA tweaks Super Licence points allocation for 2018

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The FIA has tweaked its points allocation for the Super Licence required to race in Formula 1 for 2018, placing a greater onus on Formula 2 as being the final step on the single-seater ladder.

In a bid to tighten up on the route drivers took to reach F1, the FIA introduced a new points system for the Super Licence from 2016.

Drivers require a score of 40 points in a three-year period to be granted an FIA Super Licence, with different scores being awarded for success across a variety of categories.

Previously, drivers scored the full 40 points required for a top-two finish in GP2 (now F2) or winning the title in IndyCar, FIA Formula 3, Formula E or the FIA World Endurance Championship’s LMP1 class.

As of 2018, 40 points will only be awarded for a top-three finish in F2 or winning the IndyCar drivers’ title, with the other series facing points reductions.

One of the most devalued championships is Formula V8 3.5, formerly seen as being equivalent to GP2, with a title win previously worth 35 points now worth just 20.

Here are the points breakdowns for the most valuable championships, running from P1 in the final standings to P10.

FIA Super Licence Points Allocations

Formula 2: 40-40-40-30-20-10-8-6-4-3
IndyCar: 40-30-20-10-8-6-4-3-2-1
FIA F3: 30-25-20-10-8-6-4-3-2-1
Formula E: 30-25-20-10-8-6-4-3-2-1
WEC LMP1: 30-24-20-16-12-10-8-6-4-2
GP3: 25-20-15-10-7-5-3-2-1-0
Formula V8 3.5: 20-15-10-8-6-4-3-2-1-0
Super Formula: 20-15-10-8-6-4-3-2-1-0

You can see the full breakdown by clicking here.