F1 F1 Budgets, $4.3 Million Per Point

[modena_360stradale]

F1 Budgets Off the Chart, $4.3 Million Per Point

Posted Nov 10th 2008 5:33PM by Jeremy Korzeniewski

Ever wonder how expensive it is for a manufacturer to compete in Formula 1 racing? Not surprisingly, it ain't cheap. Each of the successful teams spend hundreds of millions of dollars on their programs, but success is not necessarily tied in to how much dough was spent. For instance, Ferrari, winners of this year's constructor's championship with 172 total points, spent about $2.4 million per point in 2008. McLaren and BMW, numbers two and three respectively, spent a bit more than that figure, but still under a cool $3 mil. Honda and Toyota, though, had budgets nearly as large as the top-tier manufacturers yet scored significantly fewer points. In fact, Honda's meager 14 points cost the automaker over 28 million buckaroos a piece, making theirs the most expensive points of all. On average, teams spent about $4.3 million per point. No wonder the sport is looking to cut its budget as soon as possible. Thanks for the tip, Keith!



[Source: F1 Fanatic, via AutoBlog.com]

 

[Monster]

So how much prize money does the team get per race, or is there such a thing?

 

[Imhotep Evil]

F1 money wars set to explode

Concerns over CVC revenues and debt 11/11/08 08:52



A new row over money, with the Formula One teams on one side and the sport's ruling bodies on the other, looks set to intensify.

Britain's The Guardian newspaper reports that the teams, now allied together and pledging undying unity in the FOTA alliance, are angry about the huge debts being serviced by Formula One's owners CVC.

The newspaper said the more than $5 billion debts are requiring interest payments of more than $230m per year - with the teams suspecting that the FIA are in cahoots with CVC and Bernie Ecclestone amid the latest push to radically slash costs.

They are reportedly concerned that the annual debt payments total more than the commercial revenue they receive from CVC.

"We have had banks, oil companies, financial institutions and pharmaceutical companies with us as sponsors. We have raised this money. Why do we have to keep cutting costs?" a FOTA insider is quoted as saying.

"The sport earns a lot of money so let's look at our share," he added.


Ecclestone, CVC and F1's holding company Delta3 are, however, staying firm, insisting that teams receive more commercial revenue today than at any other time, even amidst a global financial crisis.

But another insider told The Guardian that the teams are keen to sit down with F1's commercial parties to renegotiate their share - also given Ecclestone's push into new markets that are willing to pay higher race sanction fees.

"(The calendar) used to be 12 races, then a maximum of 17. There used to be 80 percent of the races in Europe and now 80 percent are across Asia: the costs to the teams are much higher now," the insider said.

Source: GMM
© CAPSIS International

 

[Imhotep Evil]

So there are huge revenues, but because F1 was sold on debt to CVC, instead of teams getting the biggest part of the pie we've got idiots like Mosley and Ecclestone who want standard engines or downright entire spec cars.

 

[LaArtist]

No wonder toyota is fed up..haha

 

[bmer]

So what's the latest with the proposed budget caps? Are they coming?

 

[Deleted member 25]

No, it seems they finally realised that it's not possible.

 

[modena_360stradale]

No, it seems they finally realised that it's not possible.

Thankfully

 

[Remy Zero]

i think teams will still get win bonuses from the circuit or race title sponsor.