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How much does the racing team profit

Discussion in 'Other Racing' started by Pirate75, Mar 27, 2008.

  1. Pirate75

    Pirate75 Karting

    Feb 19, 2008
    178
    Scottsdale AZ
    Full Name:
    JT
    If Renault can pay Alonso 51 mill and McLaren can afford a $100 mil fine, how much do these teams actually make? I know F1 magazine claimed that they gross $600 mil a year, I wonder what their net is

    And also, do they use the sale of the cars to supply funds for the racing team, or are they completely seperate entities (sponsors, apparell. ect)?
     
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  3. bowbells

    bowbells Formula Junior

    Jan 14, 2008
    353
    Guernsey
    Full Name:
    Arthur Dent
    Mr. E made everyone in team ownership multi-millionaires. The bottom line is often very small, however the buildings/equipment get ever bigger and are paid for by the sponsor dollars and FOCA income. And the principals are highly compensated as in most businesses.
     
  4. CRG125

    CRG125 Formula 3

    Feb 7, 2005
    2,393
    Los Angeles, Ca
    Full Name:
    Vivek
    I really dont think these teams are making any money. The racing is part of either their marketing or R&D budget. So yes the funding is coming from the sales of their production cars.
     
  5. James_Woods

    James_Woods F1 World Champ

    May 17, 2006
    12,722
    Dallas, Tx.
    Full Name:
    James K. Woods
    But not for Red Bull, Toro Rossa, McLaren, or others - I think the real money comes from sponsorships and event kickbacks circa Mr. E. This was always the source of contention between teams like Minardi and the front runners - they always claimed that they were not competitive because they did not get a fair share of the money.

    Makes it tough on teams like old Jaguar - not only do you lose money racing, but you are losing money on your production cars too...(maybe they should just have gotten a bigger truck, like the old joke says) -
     
  6. Cavallino Motors

    Cavallino Motors F1 World Champ
    Lifetime Rossa

    May 31, 2001
    14,143
    Florida or Argentina
    Full Name:
    Martin W.
    Must be a profitable business. Lets see. Most of the lower teams are bankrupt or close to it. Most of the lower teams have been sold in the past 15 years multiple times. Ferrari Spa makes $500,000,000 profit and only has a $30,000,000 profit in the books, because the other $470,000,000 were spend in F1.
    So...where does all the profit go? Good question.
     
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  8. fluque

    fluque Formula 3

    Jul 30, 2004
    1,709
    Above 2240m
    Full Name:
    Fernando
    The only one making real money is Bernie... :)
     
  9. bowbells

    bowbells Formula Junior

    Jan 14, 2008
    353
    Guernsey
    Full Name:
    Arthur Dent
    Even in the old days, Frank W was making money racing, feel sure that he and others have very fat bank accounts, the last thing most are not willing to do is pony up their own money, that's when the team goes on the block.
    Jordan was the clever bastard, sell the team, sell the property but keep the access road in his name! How much Mr India??
     

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