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.

NHRA Texas winners: B. Torrence, Hagan, Anderson, Savoie

Photo and videos courtesy NHRA
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Defending NHRA Top Fuel champion Steve Torrence is a proud Texan who hates to lose. But if there’s one person Torrence likely doesn’t mind seeing win if he can’t reach the winner’s circle – particularly if it’s on home turf – it’s father Billy.

Steve was cheering his father on as the latter boosted his own championship hopes Sunday by winning the Top Fuel category in the final eliminations of the 34th annual AAA Texas NHRA FallNationals in the Dallas suburb of Ennis, Texas.

Billy Torrence (3.775 seconds at 319.67 mph) defeated Jordan Vandergriff (4.299 seconds, 246.03 mph in his first career final round) for his fourth win of the season, including his second win in the first four races of the six-race Countdown to the Championship playoffs. With the fifth Top Fuel triumph of his career, the elder Torrence moved into fourth in the Top Fuel standings, just 71 points behind his son with two races remaining in the Countdown.

Even though Billy’s son lost in the opening round Sunday, he still leads the Top Fuel standings, holding a 33-point lead over second-ranked Doug Kalitta and a 46-point lead over third-ranked and the weekend’s No. 1 qualifier, Brittany Force.

Sunday marked the third consecutive win in this year’s playoffs for the father-son combo and their second straight triumph at Dallas (Steve won there last year as part of an unprecedented sweep of the six-race Countdown en route to the championship).

It’s home turf and we love to race here,” Billy Torrence said after visiting the winner’s circle. “We’ve raced here our whole career and we have a lot of fans here. There’s no better place to race than Dallas, Texas, and we did have the best car today.

It has been very humbling, and we’ve been very blessed and fortunate to have the success we’ve had. We’ve got a great group of guys on both cars and our success is just a testament to the work these guys do. I think that we’re probably the second-best car in the country, with Steve having the best. We’ve had a stellar season.”

In Funny Car: Matt Hagan (3.909 seconds at 327.59 mph) roared to his third win of the season – as well as his third at the Motorplex – and the 32nd victory of his career, defeating Bob Tasca (3.928 seconds at 323.12 mph). Hagan also moved up to fourth in the standings.

We had a great race car today,” Hagan said. “Qualifying was pretty tough, but to turn on four win lights was pretty huge. (Tasca) is a great driver and those guys are good, so I’m glad things turned out the way they did.

We’re just trying to keep some momentum going, keep doing our job and control what we can control. It was a pretty special weekend. We’ve just got to keep digging and keep working. I love this sport and it’s been a big part of my life for 10 years. I knew (crew chief Dickie Venables) was tuned in and you could see he was confident, and that builds confidence in me.”

Robert Hight continues to lead the Funny Car standings, followed by Jack Beckman (70 points back) and No. 1 qualifier John Force (74 points back).

In Pro Stock: Greg Anderson (6.609 seconds at 209.75 mph) defeated longtime rival Jeg Coughlin Jr. (6.610 seconds at 207.56 mph) to earn his third win of the season, fifth of his career at the Motorplex and 94th of his overall Pro Stock career.

It was the 102nd time Anderson and Coughlin, who qualified No. 1 for the weekend, have met each other in a race, including the 21st time in the final round.

We’ve had so many titanic clashes with so much on the line, and I knew it would be close,” said Anderson, who is seventh in points. “It’s a total team effort and that’s what it takes to win a national event in Pro Stock right now. You’ve got to have perfection every time out there.

We made a lot of changes this week and we hit on it. It showed it on Saturday and I knew coming into today we had a chance. Now it’s a matter of if I can drive the car well enough. I can’t tell you who’s going to win this thing because everybody right now can beat everybody else.”

Erica Enders held on to her lead in the category, but saw the margin over second-ranked Matt Hartford drop to only 28 points. Coughlin is third (-65 points) and Anderson is seventh (-99 points).

In Pro Stock Motorcycle: Jerry “Alligator Farmer” Savoie (6.881 seconds at 195.90 mph) took a big step towards potentially earning his second PSM championship in the last three seasons, defeating three-time champion Eddie Krawiec (6.901 seconds at 195.62 mph).

It was Savoie’s third win of the season and 12th of his career. It’s also his second win in the first four playoff races and fifth straight appearance in the final round at the Motorplex. He’s now third in the PSM standings, 94 points behind five-time champion Andrew Hines.

It was a great day and we knew we had a good bike coming in,” Savoie said. “We said if we held our composure we could win this thing. For the most part, tracks favor certain riders and we’ve been blessed here. It’s a great place and today was great.

Bottom line, I want a championship just as bad as anybody else, so whoever is in my way I’m going to do everything I can to try and beat them. I felt good and we’ve got a great team. To me, this win gives you more hope and means a lot. This gives you that window of opportunity where you could win a championship again.”

NOTES: Only two races remain this season: Las Vegas in two weeks (Oct. 31 – Nov. 3) and Pomona, California four weeks from now (Nov. 14 – 17).

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FINAL FINISHING ORDER

TOP FUEL: 1. Billy Torrence; 2. Jordan Vandergriff; 3. Brittany Force; 4. Austin Prock; 5. Leah Pritchett; 6. Antron Brown; 7. Shawn Reed; 8. Lee Callaway; 9. Steve Torrence; 10. Terry McMillen; 11. Doug Kalitta; 12. Kebin Kinsley; 13. Mike Salinas; 14. Cameron Ferre; 15. Clay Millican; 16. Richie Crampton.

FUNNY CAR: 1. Matt Hagan; 2. Bob Tasca III; 3. John Force; 4. Robert Hight; 5. Tommy Johnson Jr.; 6. J.R. Todd; 7. Jack Beckman; 8. Shawn Langdon; 9. Tim Wilkerson; 10. Ron Capps; 11. Paul Lee; 12. Blake Alexander; 13. Cruz Pedregon; 14. Jim Campbell; 15. Jeff Arend; 16. Jonnie Lindberg.

PRO STOCK: 1. Greg Anderson; 2. Jeg Coughlin; 3. Deric Kramer; 4. Matt Hartford; 5. Erica Enders; 6. Chris McGaha; 7. Aaron Stanfield; 8. Bo Butner; 9. Jason Line; 10. Fernando Cuadra Jr.; 11. Val Smeland; 12. Kenny Delco; 13. Shane Tucker; 14. Fernando Cuadra; 15. Alex Laughlin; 16. Richie Stevens.

PRO STOCK MOTORCYCLE: 1. Jerry Savoie; 2. Eddie Krawiec; 3. Angelle Sampey; 4. Andrew Hines; 5. Steve Johnson; 6. Karen Stoffer; 7. Scotty Pollacheck; 8. Matt Smith; 9. Hector Arana; 10. Ryan Oehler; 11. Angie Smith; 12. Hector Arana Jr; 13. Kelly Clontz; 14. Michael Ray; 15. Jianna Salinas.

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FINAL RESULTS

TOP FUEL: Billy Torrence, 3.775 seconds, 319.67 mph def. Jordan Vandergriff, 4.299 seconds, 246.03 mph.

FUNNY CAR: Matt Hagan, Dodge Charger, 3.909, 327.59 def. Bob Tasca III, Ford Mustang, 3.928, 323.12.

PRO STOCK: Greg Anderson, Chevy Camaro, 6.609, 209.75 def. Jeg Coughlin, Camaro, 6.610, 207.56.

PRO STOCK MOTORCYCLE: Jerry Savoie, Suzuki, 6.881, 195.90 def. Eddie Krawiec, Harley-Davidson, 6.901, 195.62.

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FINAL ROUND-BY-ROUND RESULTS

TOP FUEL: ROUND ONE — Jordan Vandergriff, 3.746, 321.12 def. Clay Millican, 4.099, 219.72; Austin Prock, 3.688, 334.40 def. Doug Kalitta, 3.812, 316.15; Lee Callaway, 3.794, 313.66 def. Mike Salinas, 3.856, 318.69; Brittany Force, 3.694, 330.31 def. Cameron Ferre, 3.984, 269.19; Leah Pritchett, 3.724, 324.12 def. Kebin Kinsley, 3.822, 263.51; Billy Torrence, 3.733, 327.35 def. Terry McMillen, 3.756, 325.77; Shawn Reed, 3.728, 327.51 def. Steve Torrence, 3.733, 319.52; Antron Brown, 3.743, 329.58 def. Richie Crampton, 4.330, 186.61; QUARTERFINALS — Vandergriff, 3.753, 322.73 def. Callaway, 9.885, 82.51; B. Torrence, 3.767, 325.69 def. Reed, 4.861, 154.60; Prock, 3.742, 330.39 def. Pritchett, 3.964, 250.55; Force, 3.815, 319.60 def. Brown, 4.113, 230.72; SEMIFINALS — B. Torrence, 3.747, 328.38 def. Force, 3.793, 318.32; Vandergriff, 3.824, 316.97 def. Prock, 3.864, 294.95; FINAL — B. Torrence, 3.775, 319.67 def. Vandergriff, 4.299, 246.03.

FUNNY CAR: ROUND ONE — Jack Beckman, Dodge Charger, 3.896, 328.86 def. Ron Capps, Charger, 3.955, 326.79; Robert Hight, Chevy Camaro, 3.908, 327.03 def. Jim Campbell, Charger, 4.375, 219.54; John Force, Camaro, 3.926, 328.14 def. Jeff Arend, Ford Mustang, 7.353, 96.26; J.R. Todd, Toyota Camry, 3.911, 327.19 def. Cruz Pedregon, Charger, 4.342, 209.20; Bob Tasca III, Mustang, 3.873, 327.19 def. Jonnie Lindberg, Mustang, 15.205, 57.93; Matt Hagan, Charger, 3.903, 329.58 def. Blake Alexander, Mustang, 4.007, 280.19; Shawn Langdon, Camry, 3.925, 325.85 def. Tim Wilkerson, Mustang, 3.908, 323.97; Tommy Johnson Jr., Charger, 3.932, 324.05 def. Paul Lee, Charger, 3.957, 323.97; QUARTERFINALS — Hight, 3.937, 326.40 def. Langdon, 3.964, 321.35; Hagan, 3.903, 329.18 def. Todd, 3.937, 325.85; Tasca III, 3.938, 324.20 def. Beckman, 3.951, 322.42; Force, 3.937, 327.98 def. Johnson Jr., 3.919, 320.20; SEMIFINALS — Hagan, 3.900, 329.83 def. Hight, Foul – Red Light; Tasca III, 3.920, 323.89 def. Force, 3.951, 327.98; FINAL — Hagan, 3.909, 327.59 def. Tasca III, 3.928, 323.12.

PRO STOCK: ROUND ONE — Aaron Stanfield, Chevy Camaro, 6.609, 208.91 def. Kenny Delco, Camaro, 6.635, 208.68; Greg Anderson, Camaro, 6.597, 208.78 def. Jason Line, Camaro, 6.590, 208.88; Chris McGaha, Camaro, 7.964, 125.90 def. Fernando Cuadra, Camaro, Foul – Red Light; Matt Hartford, Camaro, 6.602, 207.59 def. Fernando Cuadra Jr., Camaro, 6.615, 208.17; Bo Butner, Camaro, 6.617, 208.14 def. Shane Tucker, Camaro, 6.638, 207.85; Deric Kramer, Camaro, 6.577, 209.56 def. Val Smeland, Camaro, 6.618, 208.55; Erica Enders, Camaro, 6.579, 210.11 def. Alex Laughlin, Camaro, 7.820, 127.56; Jeg Coughlin, Camaro, 6.573, 209.49 def. Richie Stevens, Dodge Dart, Broke; QUARTERFINALS — Hartford, 6.625, 208.23 def. Butner, 6.656, 208.42; Anderson, 6.596, 210.05 def. Enders, 6.604, 210.54; Kramer, 6.611, 209.17 def. McGaha, 6.630, 208.75; Coughlin, 6.620, 208.23 def. Stanfield, 6.630, 208.46; SEMIFINALS — Coughlin, 6.609, 207.37 def. Hartford, 6.656, 207.43; Anderson, 6.628, 206.76 def. Kramer, 6.627, 208.30; FINAL — Anderson, 6.609, 209.75 def. Coughlin, 6.610, 207.56.

PRO STOCK MOTORCYCLE: ROUND ONE — Eddie Krawiec, Harley-Davidson, 6.912, 195.34 def. Ryan Oehler, 6.901, 196.33; Karen Stoffer, Suzuki, 6.863, 196.67 def. Angie Smith, 6.910, 195.65; Andrew Hines, Harley-Davidson, 6.885, 194.46 def. Hector Arana Jr, 6.933, 193.52; Angelle Sampey, Harley-Davidson, 6.903, 190.89 def. Hector Arana, Foul – Red Light; Scotty Pollacheck, 6.898, 194.21 def. Kelly Clontz, Suzuki, 6.955, 192.08; Steve Johnson, Suzuki, 6.849, 194.21 def. Michael Ray, 7.209, 155.76; Jerry Savoie, Suzuki, 6.827, 196.10 def. Jianna Salinas, Suzuki, 8.231, 104.03; Matt Smith, 6.837, 197.33 was unopposed; QUARTERFINALS — Sampey, 6.914, 193.93 def. Pollacheck, 6.918, 194.16; Hines, 6.921, 194.58 def. Johnson, 6.889, 194.35; Krawiec, 6.899, 195.76 def. M. Smith, 6.935, 196.24; Savoie, 6.857, 196.44 def. Stoffer, 6.900, 196.07; SEMIFINALS — Krawiec, 6.957, 195.48 def. Sampey, 6.989, 190.35; Savoie, 6.877, 195.76 def. Hines, 6.991, 191.51; FINAL — Savoie, 6.881, 195.90 def. Krawiec, 6.901, 195.62.

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UPDATED POINT STANDINGS

TOP FUEL: 1. Steve Torrence, 2,394; 2. Doug Kalitta, 2,361; 3. Brittany Force, 2,348; 4. Billy Torrence, 2,323; 5. Leah Pritchett, 2,290; 6. Austin Prock, 2,278; 7. Mike Salinas, 2,266; 8. Antron Brown, 2,247; 9. Richie Crampton, 2,228; 10. Clay Millican, 2,210.

FUNNY CAR: 1. Robert Hight, 2,437; 2. Jack Beckman, 2,367; 3. John Force, 2,363; 4. Matt Hagan, 2,325; 5. Bob Tasca III, 2,315; 6. Ron Capps, 2,302; 7. J.R. Todd, 2,274; 8. Tommy Johnson Jr., 2,243; 9. Shawn Langdon, 2,239; 10. Tim Wilkerson, 2,188.

PRO STOCK: 1. Erica Enders, 2,395; 2. Matt Hartford, 2,367; 3. Jeg Coughlin, 2,330; 4. Jason Line, 2,327; 5. Deric Kramer, 2,323; 6. Bo Butner, 2,321; 7. Greg Anderson, 2,296; 8. Alex Laughlin, 2,239; 9. Chris McGaha, 2,217; 10. Val Smeland, 2,124.

PRO STOCK MOTORCYCLE: 1. Andrew Hines, 2,464; 2. Karen Stoffer, 2,383; 3. Jerry Savoie, 2,370; 4. Eddie Krawiec, 2,365; 5. Matt Smith, 2,297; 6. Hector Arana Jr, 2,274; 7. Angelle Sampey, 2,248; 8. Angie Smith, 2,181; 9. Ryan Oehler, 2,159; 10. Hector Arana, 2,128.

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