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

Discussion in 'Other Racing' started by ryalex, Mar 27, 2004.

  1. ryalex

    ryalex Two Time F1 World Champ
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    Aug 6, 2003
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    Ryan Alexander
    I'll start by saying I'm in the middle of law school and can't drop everything to go work for a racing team to learn by the ropes. But I'm VERY interesting in learning more about the ins-and-outs of the racing industry - primarily how racing teams get started, obtain financing, etc.

    Are there any good books, videos, documentaries or other places to learn about racing economics?

    Later on in life, once I've paid in enough to charities to satisfy my conscience, I'd love to have my own racing team - especially a rally team (maybe even a WRC private team).
     
  2. Mule

    Mule F1 Rookie
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    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.
     
  3. ryalex

    ryalex Two Time F1 World Champ
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    Thanks Mule - I'll go read it at B&N or something.

    -R
     
  4. Mitch Alsup

    Mitch Alsup F1 Veteran

    Nov 4, 2003
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    If you want to end up with a small fortune after racing cars, start with a very large fortune.
     
  5. Mule

    Mule F1 Rookie
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    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.
     
  6. ryalex

    ryalex Two Time F1 World Champ
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    Got it: politicians and non-profit groups. The Republican team and the Democrat team. maybe even personal teams for the rich politicians... like the John Kerry #56 or the GWB #04.

    Or how about the NAACP car? The NOW team (w/woman driver, slogan: "Demanding equality everywhere!"), the NRA team ("Shootin for the top")... etc. Then they'll have a crap-fit that there's not a proportional 15% African American victors/champions and 50% women winners (note not participants, but winners).

    Soon, we'll see the Missouri Synod Lutheran team take on the Reformed American Baptist Team and the Boston Roman Catholic Archdiocese team
     
  7. PSk

    PSk F1 World Champ

    Nov 20, 2002
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    Pete
    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
     
  8. Mule

    Mule F1 Rookie
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    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.
     
  9. judge4re

    judge4re F1 World Champ

    Apr 26, 2003
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    Dr. Dumb Ass
    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?
     
  10. tifosi69

    tifosi69 Formula 3

    Dec 23, 2003
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    Al-Al Cool J
    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.
     
  11. ryalex

    ryalex Two Time F1 World Champ
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    Aug 6, 2003
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    This is what makes the Maserati Trofeo series (arrive and drive) so appealing... no extra commitment beyond some $ and showing up, with all the fun.
     
  12. beast

    beast F1 Veteran

    May 31, 2003
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    Rob Guess
    Gee i wonder where he heard the term "NECKCAR" from???? :D
     

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