I want to learn about race team economics - best resources?

There is a good article in this month's F1 racing on team spending, which may be a small part to your project. $2.4 billion a year.

 

If you want to end up with a small fortune after racing cars, start with a very large fortune.

 

When you find out, let F1 know, so we can get more cars on the grid. See if there are any books on Jordan, Minardi, Arrows, Prost, etc. Even the older teams who were pioneers on obtaining sponsorship outside of the factory. Tobacco of course, but there are others. Even NASCAR, IRL, and CART study may yeild some results.

Earlier on, when costs were lower, teams just showed up with what they built to race. Gentlemen racers brought their own money to a team.

I believe Gold Leaf was the first big sponsor in F1, at a time of no sponsors. Who would be the next big sponsor who is not in racing now? NASCAR seems to have grabbed everyone from soft drinks to the Armed Forces.

 

Motor racing finances:

1. Take every cent you have out to your backyard.
2. Make a large pile of it in the middle of your lawn. Make sure where you choose does not have any over hanging trees or plants.
3. Poor some petrol on to the money.
4. Throw lighted match into the money ... and run back in to a safe position.
5. If you should happen to find any more money quickly add to the fire.

If you are a pyromaniac you will experience the same excitement and glee a race car driver does, in that 1% of time when everything on the race car works. As the fire dies down and you cannot find anymore money you will experience the same downer, just like the race car driver and mechanic feels for the rest of the 99% of time, ie. when repairing accident damage, or looking for those lost seconds, etc.

But ofcourse as soon as you do come into some money you will happily experience that 1% drug again

Pete

 

You know, despite the humor, candidate or political party sponsorship is something I am suprised has not popped up in NASCAR. Even the NRA would not be a bad move for NASCAR, but definitly not F1. GW touched on it by attending the Daytona 500.

The NOW reference is being addressed as some teams are taking advantage of the growing female fan base and looking at the products that appeal to them and soliciting sponsorship.

You have opened up a interesting avenue of ideas.

 

The only successful formula for this is to do as follows:

1. Meet a bunch of very wealthy individuals or corporations.
2. Get them to give you money (beg, borrow, or convince them that they are getting good value for their money).
3. Go spend it racing.
4. The key: make sure your customers/clients/buddies have a good time and want to spend even more money to have a better time.
5. Repeat (you've got to be a salesman, go out and close the deal).

I've had some great mentors on the team management side of racing and almost all have tried to talk me out of it. I have more fun just going to the track and working on a crew than wanting to lead the show. That and I probably make at least 3x what a good team manager makes right now.

Speed is money, how fast do you want to go?

 

I think you will find that F1 Racing is an excellent read and well worth buying, awesome articles, great detail and excellent photography. I only wish there was such a magazine stateside, Racer is too caught up in NeckCar and the other beer-swilling disciplines.

 

Gee i wonder where he heard the term "NECKCAR" from????