What is the cost?

ferrarifan · 20 Jul 2005, 04:21 (Ref:1359020)

What is the annual cost of running a top F1 team like Ferrari, Renault or Mclaren?

Kicking-back · 20 Jul 2005, 05:14 (Ref:1359029)

You won't get much change from half a billion pounds.

Dutton · 20 Jul 2005, 05:29 (Ref:1359032)

There is quite a lot of variation in the suggested figures, but I would be more tempted to go for half a billion US dollars than half a billion pounds sterling. I think Renault don't spend quite as much as the other two, and Toyota are (arguably) the largest spenders in F1 at the moment.

Either way, it is an absolutely insane amount of money: and I love it.

Marbot · 20 Jul 2005, 11:24 (Ref:1359208)

Quote:

Originally Posted by Dutton

Either way, it is an absolutely insane amount of money: and I love it.

Toyota,Ferrari etc aren't just given the money.They get it by charging extortionate prices for their road vehicles.The more money they spend on F1 the less chance i have of owning a Ferrari (although that chance was pretty slim anyway).

Running a racing team on what amounts to be the G.N.P. of a not so small country,strikes me as being a tad decadent.

What is the cost? F1 disappearing up its own rear end.

Tone · 20 Jul 2005, 12:02 (Ref:1359264)

These figures are from 2004..

http://www.formel1saison.de/saison%2...e_kosten.shtml

Ferrari ----------- 418,23 Mio Euro
Toyota ---------- 368,51 Mio Euro
McLaren Mercedes 359,22 Mio Euro
BMW Williams ---- 359,22 Mio Euro
BAR Honda ------- 309,87 Mio Euro
Renault ---------- 255,23 Mio Euro
Sauber ---------- 154,57 Mio Euro
Jaguar ---------- 141,93 Mio Euro
Jordan ---------- 79,92 Mio Euro
Minardi ---------- 46,58 Mio Euro

josvandeperre · 20 Jul 2005, 12:05 (Ref:1359269)

Does anyone else believe McLaren & Williams spent exactly the same amount ?

Marbot · 20 Jul 2005, 12:09 (Ref:1359275)

Quote:

Originally Posted by josvandeperre

Does anyone else believe McLaren & Williams spent exactly the same amount ?

Probably use same accountant.

VFM goes to Minardi because it isn't ten times worse than Ferrari.

Tone · 20 Jul 2005, 12:14 (Ref:1359278)

Quote:

Originally Posted by josvandeperre

Does anyone else believe McLaren & Williams spent exactly the same amount ?

Think it must be a typo

BootsOntheSide · 20 Jul 2005, 12:23 (Ref:1359292)

The amount quoted for McLaren and Williams translates to almost £250 million right now, so I suspect both teams quoted that amount as an approxiation (with exchange rate fluctuations changing the exact result). I can't beleive anyone could say taht it's good that so much money is spent, considering that the sport used ot be so much more exciting and accessible when it cost 1/10th as much.

josvandeperre · 20 Jul 2005, 12:30 (Ref:1359301)

Quote:

Originally Posted by BootsOntheSide

The sport used ot be so much more exciting and accessible when it cost 1/10th as much.

Eeeee and we all lived in shoeboxes in the middle of the road and a DFV cost £ 7500 - I wonder what that equates to in todays money - here's a new formula for F1 : four open wheels and an engine that costs todays equivalent - everything else is free (technically not monetarily)

Marbot · 20 Jul 2005, 12:39 (Ref:1359307)

Eeeee bah gum,i used to dream of living in a shoebox.

It's that old "diminishing returns" thing isn't it.Ferrari spend 10 times more than Minardi so that they can go 4 seconds a lap faster than Minardi which in relative terms (compared to other series) is still a bloody fast car.

Gt_R · 20 Jul 2005, 13:22 (Ref:1359329)

On TV, we do not see the money racing around. The fact that teams are now spending more in a bid to "buy" success isn't going to last forever. There'd be a point when they realise that they cannot commit to that level of spending.

All top teams spend approximately the same amount of money. There comes a point when an extra million dollar won't even get you an extra 0.1s. Hence, IMO, even if the top teams half their expenditure, their cars would still be only 2sec per lap slower... about the same as when FIA introduce a regulation change.

But it won't happen in a competitive world where nobody wants to lose.

ozywoodwards · 20 Jul 2005, 16:20 (Ref:1359459)

i dont really see the need for cost-cutting being enforced on the teams. surely the free-mkt will prevail, and if teams cant afford to spend as much then they wont. and if they can, for whatever reason, then they will. simple as.

Marbot · 20 Jul 2005, 16:32 (Ref:1359468)

Quote:

Originally Posted by ozywoodwards

i dont really see the need for cost-cutting being enforced on the teams. surely the free-mkt will prevail, and if teams cant afford to spend as much then they wont. and if they can, for whatever reason, then they will. simple as.

F1 shouldn't be a spending competition.

Dutton · 20 Jul 2005, 16:35 (Ref:1359470)

Quote:

Originally Posted by martyn bott

Toyota,Ferrari etc aren't just given the money.They get it by charging extortionate prices for their road vehicles.The more money they spend on F1 the less chance I have of owning a Ferrari (although that chance was pretty slim anyway).

I never said their money grew on trees. Incidentally, they are given the money: by sponsors and by the consumer.

Now, I just happen to think it is kind of awe-inspiring that so much is spent on producing such supreme machines. It may not be sustainable, in which case presumably the money will stop getting spent.

Equally, if by some miracle, some kind of external limit on spending is attained I'm not going to be howling it is the end of the world. I am not some crazy zealot or something, I just find it fascinating to see the products of such dedication.

I guess I am just liking aspect of the spending as it stands. If you can come up a good way to prevent the spending, then you have come up with something brilliant. I can't see a strategy beyond leaving the manufacturers/teams to end up being forced to do it by their own realisation.

**Adam43** · 20 Jul 2005, 17:25 (Ref:1359512)

Quote:

Originally Posted by martyn bott

Toyota,Ferrari etc aren't just given the money.They get it by charging extortionate prices for their road vehicles.The more money they spend on F1 the less chance i have of owning a Ferrari (although that chance was pretty slim anyway).

Actually it is likely to act the other way too. Putting Ferrari to one side, although this still applies little to them, lets consider the others.

Totoya (or any other manufacturer) does spend on F1 to make it's car more expensive. It spends on F1 to sell more cars. Assuming that this achieves this (they are in the best position to know and they stay in F1) then there costs on producing and distributing the cars drops and they will become cheaper and you are more likely you will own one.

It is false to argue that spending on marketing pushes up prices. If you didn't market no one would buy and the price would be very high!

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