F1 spending break down, check it out:

Looking at the other side of the spending picture, has anyone seen any estimates on what the major sponsor contributions are? Example, what does (or did) West pay to McKaren each year? Or how much does HP pay to Williams, etc.
Bruce

 

This thread got dragged up from the depths

As far as I can tell, the expenditures are spelled out very nicely above. The INCOME would be derived from

1) Sponsors paying for their logo on the car
2) Pay drivers
3) Merchandise/apparel etc sales
4) Charging for promotional events (i.e. ride in the 2-seat Minardi)
5) TV money from FOM paid to the teams

Do the teams see any other income? Anyone know the relative levels of the above line items? I thought I had heard somewhere that Marlboro was paying something like $100mm a year to be with Ferrari - could be wrong. In addition, some of the sponsors pay in full or in part with barter, i.e. HP I'm sure gives free computers to Williams and pays less in actual cash. Not all teams have pay drivers, and some teams merchandise business is worth a whole lot more (Ferrari vs. Minardi), and same for the value of promotional events.

As for the TV money, I am not sure how it works. I know that Bernie pays a percentage of TV revenues (money that TV stations have paid Bernie/FOM to cover the races), and that it varies depending on race results, points scored, etc. Anyone know details of how the money is paid out? Is it on a per-race basis? Total points at end of season? Do driver points count?

 

Several years ago, a famous American driver sponsored by Shell for decades, but having trouble getting them to pony up again because they had decided to sponsor Ferrari, told me that it was his understanding that Shell's (initial) deal with Ferrari was that they covered Michael's salary. I can't confirm of course but that makes for an interesting story and the amount would seem about right (to an outsider like me).

 

as far as nascar...
some of the sponsors(bud home depot) spend up to 20mil a year. so through in associate sponsors, hats, and other things ang you can see this isnt a cheap proposition.

as far as them not being able to spend much because the rules are tight..
this why they are spending so much. it cost a lot of money to go faster with the tight rules.

 

speedmore, that is facinating stuff, thanks for taking the time to explain some of that

 

Top teams spend closer to 70 - 80M