F1 team budgets

I did not hear that during the race - but then it was kinda early

From memory, Toyota and Ferrari are the really big spenders, with budgets around the $350M level, Renault where around the $300M mark last year. Honda where said to be 'investing' around $280M in F1 iun 2005.

Minardi, had an apparent $50M budget in 2005, so I guess that the difference last year was about $300M or about 4 seconds / lap

 

Its amazing to me that spending 50 MILLION dollars in ONE YEAR to race cars around a track is considered to be dirt-poor. Wow.

Do you think anyone besides Ferrari actually sees a return on that investment? Ferrari was founded in racing, and will always be inextricably linked ot racing. As far as I am concerned, Ferrari MUST stay in racing to keep that luster and credibility trickling down to their street cars. Plus one can see an obvious technology transfer from their F1 cars to the road cars. But I doubt many people are walking down to the Toyota dealer becasue of how their F1 team did in last week's race. JMHO.

 

toyota has the largest budget by a substantial amount over everyone.

 

i think both Toyota and Honda are just throwing the money away. who buys a honda because of its racing? who wants a toyota or lexus because of F1? and i dont know if i want red bull...unless they can fit a ferrari engine in that little can..

 

From F1 Racing, 2005 F1 Operational Budgets:

1- Toyota $499.05m
2- Ferrari $432.98m
3- Mclaren-Mercedes 419.95m
4- BAR Honda $360.16m
5- BMW Williams $360.12m
6- Renault $287.81m
7- Sauber Petronas $161.32m
8- Red Bull $139.22m
9- Jordan $104.20
10- Minardi $50.31m

 

Now how many Pay thier drivers and how many have paying drivers?

There are a lot of costs that are mixed in that are not obvious until you see specific cost report done by the teams on where money might actually be going.

 

Me that's who.

I have two Lexus' now, I dumped my crappy benz's ( they were crap to say the least ). And I am supporting toyota.

Oh yeah, and my fcar.

 

There is some interesting stuff about teams budgets in this article: http://www.pitpass.com/fes_php/pitpass_feature_item.php?fes_art_id=27235

Also, I think all you Toyota fans should read this: http://www.pitpass.com/fes_php/pitpass_feature_item.php?fes_art_id=27387 and this http://www.pitpass.com/fes_php/pitpass_feature_item.php?fes_art_id=26514

 

what kind of lexus' do u have?

 

If you figure in the private testing Ferrari does on it's own track Ferrari spends the most. With that I mean, take out the private track and apply those testing miles to the tracks the other teams use, and their budget would be the highest. Ferrari's made back it's investment on that track 100 times over.

Anthony, as far as the articles on Pittpass about Toyota goes give me a break. Every team "cheats" in one way or another. Rules are made to be bent. Sometimes you bend them so far you break them. Ferrari's current rear wing comes to mind. Why isn't Nikki screaming about that? Or what about Honda's (whom he's in a self professed love affair with) fuel tank last year. Or their front differential the year before? He’s got an ax to grind and he’s certainly doing it. Is it any wonder that He’s a Honda fan and hates Toyota?

I should dig up my old Race Car Engineering on the best cheating that's occurred. They covered everything from paper mache roll bars to fire bottles filled with NOS. And yes it was a top European rally team that used the NOS, not Toyota.

 

I remember reading somewhere that Toyota spends about 4% of its annual marketing budget in F1. I'd assume that a large portion of that near $500m budget is funded by Panasonic and all of the other team sponsors. Most interesting though is that the F1 program is bankrolled by the marketing department of the carmaker. Clearly they're in F1 to sell more Camrys whereas Ferrari sells F-cars so that they can be in F1.

I remember meeting Tom Milner of PTG Racing (races factory BMW's) who said that these days, motor racing is all marketing. Listening to the F1 drivers talk, they all want to win races and win championships. They see the PR stuff as a necessary evil...unlike NASCAR.

 

Boy that would really suck if that car DID roll over and catch on fire!

 

I think in 2006, Torro Ross will leap past MF1 (erstwhile Jordan) and BMW (nee Sauber) will increase its budget substantially. Renault looks like it did a fantastic job given its investment and its 06 car looks to be equally competent. I wonder if Ferrari can afford to sustain such expenditure. Williams budget may have dropped w/o BMW bankrolling part of the operation.

 

Me's guessing when Senna drove a McClaren-Honda that Honda probably made a few bucks, especially in their Acura line...

You'd think if the folks wanted to save a few bucks, they'd go throw money at something like the ALMS Series.

I'm anxiously awaiting for the arrival of the Kia and Hyundai F1 teams...

 

Today it's largely about B to B. When Intel partners up w/ BMW, there's no expectation that F1 fans across the world will start clamoring for Intel chips inside every electronic item they buy. Instead, they are both using the F1 relationship to collaborate on technology and research. Results could be manifest throughout the supply chain for BMW. Intel has a marketing venue for employees, corporate partners, and a forum to incubate new relationships.

Another example is Honda. For years, first as an engine supplier, Honda has used the rapid pace of development and necessity for instant decision-making that is prevalent in F1 as a development tool for selected candidates from their management and engineering ranks. Bottom line: succesful performance for a season or two as part of the F1 effort primes you for big things in the Honda corporate structure.

More about the business aspects of F1 can be found in the UK mag Business F1.

That's what I'm talking about.

Cheers