Investigation uncovers F1 costs

Posted: February 21, 2006 by Neeraj in External, News

As reported on crash.net

Here are some figures from the above article:

Formula One burns an incredible £1.5 billion a year …… Toyota are the biggest spenders on the grid as they attempt to secure F1 glory – with an annual budget of around £290 million

Ferrari come in in second place with a budget of £250 million …… Renault spent …… £166 million …… Minardi operated on a budget of under £30 million for its final season of competition ……

…… also uncovered the lengths the teams go to in order to provide hospitality over the course of the year, with Toyota and Red Bull Racing both splashing out more than £6 million over the season……

Cool ! If I recollect correctly, till 2004 Ferrari was the biggest spender with something in tune of £320 million & Mercedes-McLaren was second. But really, spending £1.5 billion a year, is really way toooo much !

? What are your thoughts about it ? Do you believe these figures or do you think they are on lower/higher side ?

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Comments
  1. sukhi says:

    well, Ferrari was the biggest spender until Toyota entered sometime around 2001 or so. And it has been Toyota since then. With Ferrari a distant 2nd, Mclaren a close 3rd and so on.

  2. ClickRich says:

    You have to question what the money is being spent on and why.

    It is clearly, in the main, being spent on technology. Why? To win.

    Whilst that may seem obvious, it also doesn’t make sense. If the teams were to think this through, they would ALL stand to gain a whole load more if they made the sport a greater spectacle. This is an entertainment business and they should be able to draw a greater audience for their 1.5 billion. Thus, the corporate return interms of marketing increases. Sure, for the winner the spoils are greater, but investment in technologies which make the races less interesting (no four wheel sliding, no skidding, no overtaking) is non sensical.

    The problem in getting to something which DOES make sense is that the sport is in a hole with VERY deep vested interests from the major manufacturers.

    I think that they’ve alot to learn from other Formulas.

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