Formula One Costs 2006

[Matra et Alpine]

from itv-f1.com

RENAULT'S BARGAIN CHAMPIONSHIPS
Last Updated: Sunday, 26, February, 2006, 12:39

A survey has revealed that world championship winner Renault spent significantly less than its main rivals on last season’s Formula 1 campaign.
F1 Racing magazine carries out an annual study of teams’ finances, using accounts filed at Companies House and extrapolating the figures to estimate how much each team spent on various aspects of its 2005 programme.
According to its research, Renault spent an estimated $287.81 million to win both titles, far less than the $499.05 million that Toyota is thought to have ploughed into its season.
Ferrari and McLaren completed the big spenders’ top three, on $432.98 million and $419.95 million respectively.
The magazine analysed teams’ expenditure in ten different categories, including research and development, wind tunnel time, testing, corporate entertainment and driver salaries.
Toyota topped six of the tables, with Renault only once nosing into the top five, and that was for the $18.25 million it is understood to have paid its drivers.
Other notable statistics include Red Bull’s $10.70 million outlay on corporate entertainment and the size of the spending gulf between F1’s biggest and smallest teams.
Minardi is estimated to have spent $0.45 million on R&D in 2005, compared to the $63.40 million that Toyota devoted to its equivalent programme.
The study suggests that the entire pit lane spent a total of $2,814,720,000 to put 20 cars on the grid for 19 races last year.
A full breakdown of the F1 spending statistics can be found in the latest issue of F1 Racing magazine, on sale now.

[Zytek_Fan]

Red Bull overspent on entertaining

[RacingManiac]

2.8 Billion dollars.......what a waste of money....

[Matra et Alpine]

2.8 Billion dollars.......what a waste of money....

Compared to what ?

[Jack_Bauer]

Other notable statistics include Red Bull’s $10.70 million outlay on corporate entertainment

Red Bull overspent on entertaining

Reportedly $0.7million was spent on hospitality/food etc. The other $10million was spent trying to revive David Coulthard's corporate persona, with mixed results.

[Matra et Alpine]

Reportedly $0.7million was spent on hospitality/food etc. The other $10million was spent trying to revive David Coulthard's corporate persona, with mixed results.

Sponsors like DC because he devotes the time and shows interest in supporting them.
The other $10M is more likely to pay for his tastes in women

[RacingManiac]

Compared to what ?

The fact that they spent 2.8 Billion dollars to run 20 cars for a season of racing is outrageous.....and then the fact that they do this every year, when 2.8 billion dollars are spent with no real return is even more outrageous....

[MrKipling]

As surprising as it is, it does confirm the repeatedly proved idea that, as important as it undoubtedly is, money isn't everything in F1.

[Matra et Alpine]

The fact that they spent 2.8 Billion dollars to run 20 cars for a season of racing is outrageous.....and then the fact that they do this every year, when 2.8 billion dollars are spent with no real return is even more outrageous....

The sponsors who ante up most of that $2.8B clearly get a VERY good return on their investment.

What did you mean by "no real return" ?

It's not running 20 cars it's running 10 major corporations

Even on the worst cars you seldom se any unused sponsor areas.
Not somethign you can say about almost every other formula in motorsport

[Zytek_Fan]

Red Bull spent $500,000 just for the concert at their launch party in Melbourne

[Cyco]

I'm almost suprised it ONLY cost $2.8b for the season

[Coventrysucks]

when 2.8 billion dollars are spent with no real return is even more outrageous....

Well, other than employing probably hundreds of thousands of people...

And it's not just teams, its their suppliers, their service companies, their transport companies, the staff employed running and building circuits, the people in the media, the people running the hotels around the circuits... etc, etc, etc...

Lets face it, it isn't like the drivers could be better employed as scientists working for a cure for cancer or anything.

As for Renault; how much of their thriftiness is down to a lack of long-term investment?

[Matra et Alpine]

Lets face it, it isn't like the drivers could be better employed as scientists working for a cure for cancer or anything.

I can think of a few that coudl be better employed as a lab rat working FOR a scientist in a lab coat

As for Renault; how much of their thriftiness is down to a lack of long-term investment?

Briattore alwasy prided himself for running a lean team.

[Coventrysucks]

Briattore alwasy prided himself for running a lean team.

Even so, McLaren and Ferrari are spending money to keep themselves in the sport for however long it survives; Renault are wrapping up operations.

Does their budget take into account any low tier workers and staff that have already been given the boot, or any machinery + equipment and facilities that may have been sold off because they won't be needed for the last two seasons?

There could be a large ammount of money "hidden" in that fashion, that they spent, but then offset.

Also McLaren have just built a spangly new factory, and I'm sure Ferrari have invested in wind tunnels recently - something which Renault's budget doesn't need to account for.

[RacingManiac]

The sponsors who ante up most of that $2.8B clearly get a VERY good return on their investment.

What did you mean by "no real return" ?

It's not running 20 cars it's running 10 major corporations

Even on the worst cars you seldom se any unused sponsor areas.
Not somethign you can say about almost every other formula in motorsport

In cases like privateer teams that is true. But with the large portion of manufacturer backing these days, where car company foots the bill, it is simply not sustainable or responsible to do so. If they get some R&D out of it then maybe it can be justified. I like racing as much as the next guy(duh... ), but that kind of spending is quite rediculous....

Of course, then there is the whole issue of other professional sports....which is even more wasteful and pointless....