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.

Eli Tomac wins Tampa Supercross, takes red plate home

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With his third win of the season, Eli Tomac took the red plate from Ken Roczen at Raymond James Stadium in Tampa, Fla. Entering with a one-point deficit, Tomac left with a four-point advantage in the 2020 Monster Energy Supercross championship hunt.

Tomac has struggled with starts so far this season. Saturday, he was part of a four-rider separation on the opening lap. He slotted in behind Adam Cianciarulo and went to school on his teammate.

“Our starts were better,” Tomac told NBCSN after the race. “That was the key. We put ourselves in a position early so that we could go to battle and ride the way we’re supposed to ride.”

Tomac claimed his 30th career win as the riders behind swapped positions. Cianciarulo and Malcolm Stewart started out with top-five runs. Both had the podium in site before they faded and gave last year’s Big Three free reign at the front of the pack.

“Early on I was just following Adam,” Tomac said. “With these short lap times I knew we had a lot of laps under our belt tonight. So I kind of just settled tonight and then made the push just before halfway.

“And I thought I’ve go to go if I’m going to go. So I was able to switch up the sand there. That was really cool with the option. A good passing spot.”

Cooper Webb finished second. It is his fifth podium of the year, but he felt he could have challenged Tomac if he had gotten through traffic a little faster. Roosters from the sand section blinded him and forced a more cautious approach from on top of his KTM.

Roczen minimized his points loss with a third-place finish. It could have been much worse. At about the halfway point, Roczen fell. Luckily for him, Cianciarulo went down on the same lap and took much longer to right his bike, which allowed Roczen to hold onto a top-three spot. Roczen ended the race nearly 11 seconds behind Webb and 18 behind Tomac.

Last year’s Big Three all stood on the podium.

Speed has not been a problem for Cianciarulo. He has been fastest in qualification every week including Tampa, but he is still learning how to get to the finish without making mistakes.

Last week Cianciarulo lost the lead late at San Diego when Webb was able to study his line. This week Cianciarulo had the opportunity to study Tomac, but he refused to simply ride and gain experience.

Earlier this week, Cianciarulo told NBC Sports: “The adversity I’ve faced – the mistakes I’ve made – have all been basically caused because of not settling. Just trying to get the absolute most I can out of every race. I guess in a way you can look at that and say it was inexperience or a rookie being a rookie.”

Cianciarulo went from second at the midway point to ninth at the checkers.

Justin Barcia and Justin Hill rounded out the top five.

Stewart had one of his best runs of the season, but he faded in the closing laps. On the final trip around the track, he nipped Jason Anderson at the line.

Shane McElrath won the opening round of the 250 East division, just as he has done in his last two 250 West openers. Feld Entertainment Inc.

250 EAST: Shane McElrath won the opening rounds of his 2017 and 2018 seasons. Both of those came at Anaheim in the 250 West division. Switching coasts did not make any difference. McElrath drew first blood in the series with a 3-second advantage over last year’s 250 East champion, Chase Sexton.

“Nobody outside of my wife and I really know what went into this year and what a hit we took last year mentally,” McElrath told NBCSN. “It was a struggle. Everybody goes through their down times, and I really had a lot of growing to do last year.”

Sexton got off to a bad start on the first lap. All the news wasn’t bad. After getting mired in the pack at the start, he picked his way through the field and settled into second about halfway through the main event. Sexton made up 8 seconds as the clock ticked but simply ran out of time.

“I didn’t execute my start like I needed to,” Sexton said. “You can’t come from fifth and expect to catch them by the end of the race.”

In his first race back after a year and a half with a broken back, Jeremy Martin stood tall on the last rung of the podium

Garrett Marchbanks and Jordan Smith rounded out the top five.

450s

Heat 1: Eli Tomac is not known for his starts. It’s time to rethink that after Heat 1. Tomac bolted to a big lead on Lap 1. … Malcolm Stewart led the field to the first corner. He slid wide exiting the corner and slipped back several spots before charging back to second. … Cooper Webb backed up his win last week with a third-place finish. … Vince Friese finished ninth to grab the final transfer. | Heat 1 Results

Heat 2: Ken Roczen stalked Adam Cianciarulo until the rookie buried his front wheel in the sand section. That stalled his momentum and allowed Roczen to take the lead. It set up a huge battle for the final battle for the top spot as the two crossed under the checkers nose to tail … Roczen won over Cianciarulo. … Zach Osborne took the final rung of the podium. … Back after a two-year hiatus, Broc Tickle finished fourth. It was like he had never been off the bike. … On Lap 1 Blake Baggett jumped into the back of Jared Lesher. They collected Joshua Cartwright, who got pinned under his bike and limped off the track. Baggett recovered to finfish eighth. … Kyle Chisholm took the final transfer position in ninth. | Heat 2 Results

LCQ: Chad Reed had to go through the LCQ, but he qualified for his 255th 450 Main where he would finish 19th. … Kyle Cunningham provided a lot of drama as time was running off the clock, but missed a corner and settled for second. Ryan Breece finished third. … Making his first Main of the season, Adam Enticknap swapped positions with Daniel Herrlien throughout the race and nipped him at the end.  | LCQ Results

250s

Heat 1: Shane Mcelrath grabbed the lead early and held it throughout the heat. He won by 14 seconds, but much of that was because of mistakes by the second- and third-place riders. … Garrett Marchbanks had a quick off early in the race. He recovered to finish second. … Jordon Smith struggled in the sand. He went down early in the sand section, but he held position for a while. A second mistake in the sand allowed his teammate Marchbanks to pass him. … The final transfer position was a barnburner as Nick Gaines held off a determined charge by Hunter Sayles on the final lap. | Heat 1 Results

Heat 2: Chase Sexton told reporters before the race that he is determined to dominate. So far so good as he let the entire heat in route to the top spot on the podium. … Jeremy Martin settled into a comfortable spot four seconds back as the battle for third heated up. … Jo Shimoda held it for a while, but was eventually overrun by RJ Hampshire, who took the final rung of the podium … Shimoda faded to fifth. … The final transfer spot went to Cedric Soubeyras. … Joey Crown finished a respectable eighth and also transferred. | Heat 2 Results

LCQ: Jimmy Decotis made his move at the right time. With less than a minute on the clock, he caught and passed Curran Thurman. … Jimmy Decotis finished third. … The battle of the night was for the final transfer spot. Jalek Swoll made a dramatic pass in the final turn, but bogged down in the whoops and allowed Isaac Teasdale to catch him at the line in a photo finish. Teasdale took the final spot | LCQ Results

Click here for 450 Main Results | Season Points
Click here for 250 Main Results | Season Points

Next race: February 22, AT&T Stadium, Arlington, Texas

Season passes can be purchased at NBC Sports Gold.

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