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.

Hinchcliffe engine issue hits Carb Day practice, as Castroneves leads

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INDIANAPOLIS – Helio Castroneves has led the final one-hour practice session ahead of the 101st Indianapolis 500 presented by PennGrade Motor Oil, in the No. 3 Shell Fuel Rewards Team Penske Chevrolet, but it’s a Honda that made the bigger news during the extended session.

Another Honda engine issue – at least the eighth this month between the INDYCAR Grand Prix, practice and qualifying – now struck James Hinchcliffe during the final 20 minutes of the session in the No. 5 Arrow Electronics Schmidt Peterson Motorsports Honda.

Heading into Turn 3, Hinchcliffe’s gold and black car took on a distinctly white hue by contrast, as smoke billowed out the back of the car. It littered the track between Turns 3 and 4.

Yet as Hinchcliffe, the 2016 race polesitter explained to NBCSN’s Katie Hargitt, the timing was as good as it could have been considering had it happened later it would have been in the race itself.

“I felt what the engineers would call a suboptimal rapid negative acceleration heading into Turn 3,” Hinchcliffe told NBCSN. “We’ve had some issues across the Honda camp. It’s less than ideal.

“I felt bad going into 3. I hope we weren’t leaking too badly. I’m happy it didn’t happen 20 minutes later, that would have been Lap 5 of the race. We’ll get an engine, we’ll put it in. But that was by far the best we’ve felt on the 5 car all month. Let’s put this thing to bed. The car feels really good in traffic.”

Hinchcliffe will start 17th on Sunday. He ended his truncated practice in 14th.

Photo: IndyCar

Behind another gold car – the gold-and-white No. 3 car of Castronves – Takuma Sato and Tony Kanaan completed the top three, with Scott Dixon and Fernando Alonso completing the top five.

Speeds are below.

2017 Indy 500 Carb Day Rolling Notebook

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INDIANAPOLIS – Miller Lite Carb Day is underway from the Indianapolis Motor Speedway. This inevitably brings a number of nuggets, notes and updates from the track besides the on-track activity.

We’ll keep this post updated as things arise.

First off, here is a link ahead of coverage on NBCSN to come from Indianapolis today.

8:45 a.m. ET: In case you missed any posts from yesterday and earlier this morning, here’s a quick roundup:

9:00 a.m. ET: We have a date, and a logo, for the 102nd Indy 500, which like the last two years continues with PennGrade Motor Oil presenting sponsorship.

Next year’s race will again fall on the fourth and final Sunday of May, May 27, 2018.

That logo and signage is below.

9:30 a.m. ET: Here is the day’s full schedule, via IMS.

 

7 a.m.: Parking Lots Open
7 a.m.-6 p.m.: Administrative Office Open, Credential Office Open, IMS Ticket Office Open
8 a.m.-5 p.m.: Ticket Trackside Office Open, Ticket Remotes Open (Gates 3, 6, 9, 10)
8 a.m.-6 p.m.: Credential Trackside Office Open
8 a.m.-6 p.m.: Public Gates Open
8 a.m.-3:30 p.m.: IMS Midway Open
8-9 a.m.: Historic Race Car Exhibition
9-10 a.m.: Firestone Pin Distribution – Pagoda Plaza
10-10:30 a.m.: Indy Lights Autograph Session – IMS Midway
10:30-10:45 a.m.: Sam Schmidt Arrow Car Laps
10:45 a.m.: Clint Brawner Award Ceremony – Victory Podium
11 a.m.-noon: Verizon IndyCar Series Practice
12:05 p.m.: Indy Lights Driver Introductions
12:15 p.m.: Invocation delivered by Rev. Mike Welch
12:16 p.m.: National anthem performed by Reba McEntire
12:25 p.m.: “Drivers Start Your Engines”
12:30 p.m.: Indy Lights Freedom 100 race – 40 Laps
1:45-3 p.m.: TAG Heuer Indy 500 Pit Stop Challenge
2 p.m.: Miller Lite Carb Day Concert Venue Opens
3:30-4:30 p.m.: Barenaked Ladies Concert – Turn 4 Miller Lite Carb Day Stage
4-5:30 p.m.: Hinch “The Mayor on Air” Live Podcast – Garages 35 & 36
5-6:30 p.m.: Steve Miller Band Concert – Turn 4 Miller Lite Carb Day Stage

More updates will follow in this post throughout the day.

WATCH LIVE: Indy Carb Day, then NASCAR AMERICA from 11a ET, NBCSN

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The busiest and greatest weekend in motorsports takes place this weekend from Monaco, Indianapolis and Charlotte, and you can see quite a bit of it today on NBCSN from 11 a.m. ET. The live stream link is here, via the NBC Sports App.

Indianapolis 500 Carb Day coverage will run from 11 a.m. through to 3:30 p.m. ET, in several chunks:

  • IndyCar final practice for the 101st Indianapolis 500 presented by PennGrade Motor Oil runs from 11 a.m. to noon ET. Kevin Lee, Townsend Bell and Paul Tracy will be in the booth with Marty Snider, Jon Beekhuis, Katie Hargitt and Robin Miller on pit lane.
  • From there, at noon, it’s the marquee race of the Indy Lights Presented by Cooper Tires season – the Freedom 100. With finishes of 0.0024 (2016, Dean Stoneman over Ed Jones), 0.0026 (2013, Peter Dempsey over three others) and 0.005 (2014, Gabby Chaves over Matthew Brabham), the Freedom 100 is known for fantastic and close finishes. Lee and Anders Krohn will be in the booth with Hargitt and Beekhuis reporting from the pits. The starting grid for that is linked here.
  • At 2 p.m. ET, it’s the Indy Pit Stop Competition, with the IndyCar crew back in for that. While some of the bigger teams are usually the ones that wins this, others such as Mikhail Aleshin for Schmidt Peterson Motorsports and Sage Karam for Dreyer & Reinbold Racing have stolen the show in this competition in recent years.

The coverage from Indianapolis runs for those four and a half hours, and leads straight into the now-annual NASCAR AMERICA Motorsports Special, which features live coverage from NBC crews in all of Indianapolis, Monaco and Charlotte and runs from 3:30 to 5 p.m. ET on NBCSN. A standard NASCAR AMERICA show runs from 5 to 6 p.m. ET.

Among the items to look forward to from Indy and Monaco in that show:

  • An update on Fernando Alonso’s crazy month of May, ahead of his first Indianapolis 500
  • Robin Miller tours the A.J. Foyt Exhibit at the Indianapolis Motor Speedway Museum
  • A look at Will Power, the dad, and the change that’s come to his life
  • From Monaco, a look at this season’s stellar battle between Lewis Hamilton and Sebastian Vettel
  • A look at the magic of Monaco and a simulation of the track

As a reminder, here’s the IndyCar times from this weekend, and a link to the F1 times as well.

Alonso vs. ‘The Other 32’ hits Indy Media Day, plus Thursday notes

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INDIANAPOLIS – Sebastian Saavedra served as the perfect foil for the attention generated by Fernando Alonso on media day ahead of this year’s 101st Indianapolis 500 presented by PennGrade Motor Oil.

The Colombian driver was never going to be the driver to generate the most attention on this day. He starts 31st and hasn’t started an IndyCar race since the Sonoma season finale in 2015.

But being sat next to Alonso? It gave the impression poor Seb – himself about to start his sixth Indy 500 and a first with Juncos Racing as it makes its debut – was a lost soul in the wrong room, instead of one of his fellow competitors.

Saavedra could well have been speaking for “the other 32” – the drivers not named Alonso racing in 2017 – when he talked about what it meant to be back in this race after missing it for one year, and the preparation that will already begin for the 2018 ‘500, starting Monday.

“We don’t run just to run,” Saavedra, driver of Juncos’ No. 17 AFS Chevrolet, told NBC Sports. “Something needs to make sense. Coming into this year we came in with a different mentality; to build something for the future.

“When you’re not here, you miss this place. On Monday, we want everything to start up again for next year.”

In video and photographic form, the contrast between Saavedra and the scrum around Alonso’s place is captured below (or by satirist, @nascarcasm, here).

Media day inevitably serves up a series of quotes, banter and other topics from the field that we’ll flesh out over the next 48 hours on Friday and Saturday on MotorSportsTalk. As you can see below, here’s some of the facial expressions from the rest of the runners.

In other notes from the last couple days:

  • Team Penske continues to honor its legends. At its now annual Shell media lunch on Thursday, Penske has inducted legendary mechanic Karl Kainhofer and four-time Indianapolis 500 champion Rick Mears into Penske’s Hall of Fame. Both icons of Penske’s legacy were awarded plaques of honor to join Penske himself and the late Mark Donohue, inducted upon the Penske Hall of Fame’s 2016 debut.
  • This event saw all five of Penske’s drivers speak, and was the second Penske sponsor event in as many days. The first, held at an event at a house in Speedway on Wednesday, saw Verizon debut its 5G LTE technology in-home, done in partnership with Ericsson. Will Power was on hand to witness the public debut of the 5G Smart House; the house is outfitted with wireless technology and ridiculous speed, which also included a Virtual Reality component.
  • We have a pace car driver. Chevrolet announced Thursday that actor Jeffrey Dean Morgan, who has played major roles in hit television series such as “The Walking Dead” and “Grey’s Anatomy,” will drive the 2017 Chevrolet Corvette Grand Sport Pace Car to lead the starting field of the 101st Indianapolis 500 presented by PennGrade Motor Oil to the green flag Sunday, May 28.
  • The Indy Lights race has a bevy of potential surprise winners. The front row features Matheus Leist, set to run his first ever oval race, Colton Herta, who is set for his first big oval race, and two more Andretti teammates in Dalton Kellett and Ryan Norman who looked great in traffic on Monday. Leist’s Carlin teammate Zachary Claman De Melo is another wild card; the Canadian has a “Jekyll & Hyde” nature to him. Then Aaron Telitz had to deal with a bit of mist and rain on his qualifying run and will start sixth. With the top two drivers in points starting 11th and 13th (Kyle Kaiser and Nico Jamin), it’s a fascinating day on tap.

Watch all of Indianapolis Carb Day coverage and the Freedom 100 starting at 11 a.m. ET on NBCSN.