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


Christian Sylt and Caroline Reid cover the business of Formula One. More of their work can be found at

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.

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

This includes the following key areas of spending:

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.

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.

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.

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.

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.

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.

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.

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

*Includes salaries, travel and factory costs.

Lorenzo looking to Honda, Ducati for help in MotoGP title race

ALCANIZ, SPAIN - SEPTEMBER 27:  Jorge Lorenzo of Spain and Movistar Yamaha MotoGP celebrates the victory on the podium at the end of the MotoGP race during the MotoGP of Spain - Race at Motorland Aragon Circuit on September 27, 2015 in Alcaniz, Spain.  (Photo by Mirco Lazzari gp/Getty Images)
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Jorge Lorenzo hopes that he can get some help from the Honda and Ducati riders in his championship battle with Yamaha teammate Valentino Rossi in the final four races of the 2015 MotoGP season.

Lorenzo currently trails Rossi by 14 points at the top of the riders’ championship, and with just four races to go, barring an unlikely run of results, the title will go to a Yamaha rider for the first time since 2012.

The formbook offers little in the way of clues for the Lorenzo/Rossi battle, for although Lorenzo has won more races, Rossi has been more consistent, finishing off the podium just once this season.

Lorenzo had hoped to reel Rossi in last time out at Motorland Aragon, but the Italian rider managed to finish third, minimizing the damage of his teammate’s victory.

Nevertheless, Lorenzo was pleased to bounce back after two disappointing races at Silverstone and Misano, having lost ground on Rossi in the title race.

“I am very happy with this victory because it came after two races that were a bit disappointing and I expected to take more points, but due to a few factors and especially the weather, I failed to achieve the desired result,” Lorenzo said. “The victory in Motorland [Aragon] was crucial.”

Rossi was beaten to second place by Honda’s Dani Pedrosa after a titanic battle in the closing stages of the last race, and Lorenzo hopes that the Spaniard, among others, could aid his cause inadvertently again in the remaining four races.

“[Pedrosa] was very strong and it was useful to recover the points lost earlier and it has given me more chances to recover with four races left until the end,” Lorenzo said.

“But [Marc] Marquez or maybe the two Ducati riders could also stand in front of Valentino and take away some points. It is a real possibility, but very dangerous for us both.”

The next round of the MotoGP season takes place at Motegi, Japan next weekend.

Steiner: Haas F1 Team could not afford rookie mistakes

KANNAPOLIS, NC - SEPTEMBER 29:  (L-R) Gunther Steiner, team principal of Haas F1 Team, Romain Grosjean of France, and Gene Haas, owner of Haas F1 Team, pose for a photo opportunity after Haas F1 Team announced Grosjean as their driver for the upcoming 2016 Formula 1 season on September 29, 2015 in Kannapolis, North Carolina.  (Photo by Jared C. Tilton/Stewart-Haas Racing via Getty Images)
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Günther Steiner has said that Haas Formula 1 Team could not afford to have its drivers making rookie mistakes during its debut season in the sport, reasoning the decision to only sign experienced racers for 2016.

On Tuesday, Haas unveiled Lotus driver Romain Grosjean as its first signing for next season, luring the Frenchman away from Enstone after ten years of association.

The second seat is set to go to either Esteban Gutierrez or Jean-Eric Vergne, who both work as development drivers for Ferrari and both have at least two seasons of racing under their belt.

As team principal, Steiner (pictured left) will work under team owner Gene Haas, and said that both had agreed that a rookie driver for season one would be unwise.

“We looked around a lot to find the right guy because we wanted somebody with experience but still hungry to do something, to go with us this long way,” Steiner explained.

“I started talks with the management of Romain in Barcelona to see if he’s interested and, you know, we spoke to quite a few drivers, and in the end I spoke also with technical people, what they think about Romain, how he develops a car.

“We have got a steep mountain to climb here, new team, all new team members, so we needed somebody who knows what he’s doing. I think in the end we found the right guy because he has so much ‘want to drive’ now, and he’s still aggressive or still wants it.

“He’s not [so] young anymore that he’s inexperienced. We lose time by having accidents or doing rookie mistakes. I think we just picked the best one out there for what we are doing, and we focused on him and got him, and we are very happy and we are looking forward to working with him.”