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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.

Pipo Derani set for IndyCar test with SPM at Sebring

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Pipo Derani has become a star in the sports car world the last couple years, courtesy of his drives primarily with Tequila Patron ESM.

Meanwhile for at least a day, the 23-year-old Brazilian will be returning to his open-wheel roots in a big way.

NBC Sports has learned Derani will test for Schmidt Peterson Motorsports on March 1 in a rookie test for the Verizon IndyCar Series. Derani joins Mexican driver Luis Michael Dorrbecker, who will also make his test debut that day at that test at Sebring International Raceway’s 1.5-mile short course.

Derani raced a partial season in the Pro Mazda Championship Presented by Cooper Tires series in 2014 with Team Pelfrey, before shifting to sports cars later that fall, starting with Murphy Prototypes.

Derani excelled with G-Drive in 2015 before his star turn with ESM last year. This year, his schedule grows even greater, as he’s been confirmed with Ford Chip Ganassi Racing for the first three races of the FIA World Endurance Championship season, including the 24 Hours of Le Mans, sharing the No. 67 Ford GT with Andy Priaulx and Harry Tincknell.

It’ll be interesting to see what Derani does on the Sebring short course in one of SPM’s Honda-powered entries. He’ll be back at Sebring a couple weeks after his IndyCar test, as he prepares to defend his win in the Mobil 1 Twelve Hours of Sebring with ESM.

‘Uncle Bobby’ Unser turns 83 today

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February 20 is quite a day for birthdays in the North American racing world. “The Captain,” Roger Penske, turns 80, and the Shaker Heights, Ohio native continues at the head of his incredibly successful race team and automotive group without so much as a sweat.

One of Penske’s longtime drivers has his birthday today, as well. Bobby Unser, or “Uncle Bobby,” turns 83.

A member of the famed Albuquerque family, Unser won three Indianapolis 500s (1968, 1975 and 1981) before moving into broadcasting after he retired, working with ABC at the ‘500 and throughout the IndyCar schedule. A legend on Pikes Peak as well, Unser has more than a dozen wins there.

As time has passed, Unser’s forthright, candid insights have really stood out in a time where fewer drivers have properly spoke their minds.

Last May at Indianapolis ahead of the 100th Indianapolis 500, I had the opportunity to chat with “Uncle Bobby” about his life and career at the Speedway. A selection of those quotes are below:

“I’ve been here a long time. I’ve been coming every year since 1959. I saw the lights blinking on track and wonder what just happened!” he said. “This place has been going 100 years, and I’ve been a part of it for a long time.

“There’s been too many changes and I couldn’t remember them all in my head anyway. I don’t like the changes I’m seeing, but it doesn’t mean they’re all bad.

“I don’t know why I got into TV; I didn’t even go to high school. Yet I’m an engineer! Who’d ever thought Bobby Unser would do television? I ended up with a really good group at ABC. I didn’t think I could ever do it – but I did! I enjoyed myself.

“I lost a brother here. And I lost an uncle who was preparing to come here. My brother Jerry was killed here, and my uncle Joe was killed preparing to come here in a car. We were testing it in Colorado. We’ve lost two Unsers here – we don’t need a medal – but it hasn’t all been peaches and roses.

“The evolution of cars was easy. It was better to do it when we’re young! I’m not kidding. One of my heroes was Don Branson. He was a dirt track legend for sure, but he was good here too. He was the upper end of years, and I was gonna get his car. I didn’t know he’d get himself killed… we had it preplanned. But he was gonna quit driving and work for Goodyear as field manager for their racing tires. That was a big step for me.

“Don, I’m not gonna tell you I’m better than him. But he didn’t like the rear-engined cars. I’m young. He’s older. So I stepped into a rear-engined car and it feels fine to me! Some of them couldn’t hack it going from the roadster to rear-engined car. But it was easy for me, and for my brother Al. I think a lot of that is the experience you have, and the age.

“This is a tough place. Arguing about the cars now could be another deal. Most anyone could run the cars today… but I don’t want to go down that road and take up more of your time.

“Mario (Andretti) was one of my closest friends in those days. We’d fly together as I had a junky old airplane that barely made it, but it beat driving to races!

“Foyt’s Foyt. He’s a grouchy old fart, you know? But he’s a hell of a race driver. I wish the younger generation would have seen him when he was young… he was a fireplug. He was fast, he was a chassis man, and he understood engines. He was so good.

“It’s ’68, obviously (my favorite ‘500 win). You never know you can do it. There’s so many guys in this race that could be leading, two laps or 10 from the end the car quits. There’s so many of them like that. How many times are you’re leading Lap 150, and then ain’t gonna win it?

“You don’t know you can win it until checkered flag falls. The next one’s easier.”

Team Penske restores iconic ‘Blue Hilton’ Indy 500-winning transporter

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Few teams have as great an appreciation for their own history as Team Penske, so it’s only fitting that on a day when Roger Penske turns 80, the team reflects on the first transporter that helped launch the team into the national stratosphere.

Penske’s first of 16 Indianapolis 500 victories was achieved in 1972 with Mark Donohue driving, and the transporter that carried that No. 66 Sunoco McLaren Offy was a customized 1972 International Fleetstar truck known in the racing circles as “The Blue Hilton.”

This transporter served Team Penske well, carrying both Indy cars and sports cars that dominated in Can-Am in the early 1970s with George Follmer and Donohue.

More than 8,000 man hours went into the restoration of this transporter, which was only found in 2015 after concerns it’d been scrapped. Penske Truck Leasing’s James Svaasand, Michael Klotz, and David Hall and Team Penske Historian Bernie King led the restoration and can thank Jerry Breon, a long-time Penske team member, who found the truck for sale.

“After we confirmed that it was, in fact, the Blue Hilton that was for sale, I called Brian Hard (president of Penske Truck Leasing) and we agreed that we had to find a way to bring her back to life,” Team Penske President Tim Cindric said in a release. “This transporter was there when the foundation was laid for Team Penske and it is symbolic of the way in which we operate today.  Everyone at PTL did an unbelievable job restoring this vehicle.  I can’t wait for Roger to see it in person, as it is something he will cherish.”

The transporter will be on display at Team Penske headquarters in Mooresville, N.C.

You can read the full release here. A few photos of the transporter are below, courtesy of Team Penske:

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Testing confirmed, races not yet for Mikhail Aleshin in sports cars

AVONDALE, AZ - APRIL 01:  Mikhail Aleshin of Russia, driver of the #7 Schmidt Peterson Motorsport IndyCar prepares for qualifying to the Phoenix Grand Prix at Phoenix International Raceway on April 1, 2016 in Avondale, Arizona.  (Photo by Christian Petersen/Getty Images)
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Schmidt Peterson Motorsports driver Mikhail Aleshin will focus primarily on the Verizon IndyCar Series this season, but may still be busy with sports car commitments with SMP Racing.

His sponsor he has in IndyCar is working on a new non-hybrid LMP1 car for 2018, as SMP Racing’s technical partner BR Engineering is working with Dallara on that new chassis.

Aleshin said via a press release he’s already been busy working on the development of that car ahead of its planned introduction next season (more info here via Sportscar365 and Endurance-Info).

The new creation stems from the fact BR Engineering was not granted a place to continue with its BR01 LMP2 chassis, which raced in the FIA World Endurance Championship and also won the pole for the 2016 Rolex 24 at Daytona, as the ACO confirmed just four chassis constructors would continue in LMP2 in 2017 to coincide with new regulations (Onroak, Oreca, Riley Multimatic, Dallara). BR and other constructors were removed from the field as a result.

Intriguingly though, Aleshin was also listed as the nominated driver for SMP Racing’s Dallara P217 chassis for both the 24 Hours of Le Mans and the European Le Mans Series.

Le Mans doesn’t clash with an IndyCar weekend, while the ELMS and IndyCar have one clash, the weekend of August 26 when IndyCar races at Gateway Motorsports Park and ELMS is at Paul Ricard.

Aleshin may be active in a number of sports car races this year, as he has been off-and-on the last two years. But he doesn’t know his exact schedule yet.

“Well we’re working to produce our own car for 2018… and I’m one of the test or development drivers,” Aleshin told NBC Sports.

“I don’t know yet (Le Mans)… maybe I’ll be there. Well, it’s good to be a placeholder! But hopefully not for every event.

“For me the main thing this year is to concentrate on two things. Number one is IndyCar. But I have a very similar responsibility on taking care of our LMP1 project with SMP, as that will be very big.”