The latest auto news, reviews, prices, product and vehicle releases. Nov
21st
Stay connected Subscribe to our RSS feed
With two teams currently in administration (Caterham and Marussia), and several other small teams being very concerned with the escalading costs of racing in Formula 1, let's look here at the money it needs to run a team.
In Abu Dhabi for the final race of the season, Caterham administrator Finbarr O'Connell has identified the next few weeks “absolutely key” for the team's chances of surviving in its current form as he prepares to meet with three different groups of would-be investors.
“It is about what they invest rather than the price tag. The price tag will get them into Formula 1 - the big thing then is the ongoing costs," O'Connell explained.
“At this end of the grid it's probably £70 million ($110 million) a year of costs that you have to cover so only people who know they can cover that, either through sponsorship, driver sponsorship or these motor companies effectively can use it for R&D or for marketing, it's those sort of entities that we're looking at.”
How is that money spent over a year?
Here is the breakdown for an average team, such as Caterham (as published by Autosport magazine):
Hybrid power system (power units): $28 million
Gearbox and hydraulics: $5 million
Fuel and lubricants: $1.5 million
Pirelli tires: $1.8 million
Electronics: $1.95 million
Information technology (IT): $3 million
Salaries: $20 million
Travel and trackside facilities: $12 million
Chassis and parts production/manufacturing: $20 million
Windtunnel/CFD facilities: $18.5 million
Utilities and factory maintenance: $2 million
Human resources and professional services: $1.5 million
Freight: $5 million
Total: $120.25 million
In Abu Dhabi for the final race of the season, Caterham administrator Finbarr O'Connell has identified the next few weeks “absolutely key” for the team's chances of surviving in its current form as he prepares to meet with three different groups of would-be investors.
“It is about what they invest rather than the price tag. The price tag will get them into Formula 1 - the big thing then is the ongoing costs," O'Connell explained.
“At this end of the grid it's probably £70 million ($110 million) a year of costs that you have to cover so only people who know they can cover that, either through sponsorship, driver sponsorship or these motor companies effectively can use it for R&D or for marketing, it's those sort of entities that we're looking at.”
How is that money spent over a year?
Here is the breakdown for an average team, such as Caterham (as published by Autosport magazine):
Hybrid power system (power units): $28 million
Gearbox and hydraulics: $5 million
Fuel and lubricants: $1.5 million
Pirelli tires: $1.8 million
Electronics: $1.95 million
Information technology (IT): $3 million
Salaries: $20 million
Travel and trackside facilities: $12 million
Chassis and parts production/manufacturing: $20 million
Windtunnel/CFD facilities: $18.5 million
Utilities and factory maintenance: $2 million
Human resources and professional services: $1.5 million
Freight: $5 million
Total: $120.25 million