While we knew Formula 1 racing was an expensive venture, leave it to the 2008/2009 edition of Formula Money to spell-out the jaw-dropping finances for us. According to their latest guide, the supporting cast will shell out over $3 billion this year in team resources – with Toyota dropping more than $445 million of it alone. McLaren is a close second at $433 million, while Ferrari rounds out the top three with $414 million coming out of pocket. If you take a look at team resources divided by points scored, each point cost Ferrari $1.9 million in 2007 (while each point cost Honda a staggering $57.2 million during the same period!). With the financial markets around the world roiled in turmoil, many are wondering when the F1 budgets are going to feel the pinch…
I find it hilarious that Toyota tops the scales in spending and what do they have to show for it? Tie for 4th place with Renault at 41 points with the third place team scoring 117 points! Jesus. That’s horrible. When will they fold? They can’t honestly keep up the spending to continually not be in the hunt for a championship. That is sad. Wonder if Nissan will get into F1? hmmmm…even though Renault is there, it would be cool to see the Nissan Badge represented.
Even if Renault let Nissan into F1 (which is NEVER gonna happen while Renault is sucking as bad as they are) I doubt Nissan can afford Forumula 1. Besides, as much as I would love to hear the 19’000rpm scream of a Nissan F1 V8, I say they should stick to spending their R&D budgets on the likes of the GTR. Think of it like this: with all the money Toyota spends on F1, when was the last time you got excited about a Toyota car, hmm? (Supra non-withstanding). I’m not saying that F1 spending is the reason, but I’m sure that $445 million spend on it isn’t exactly helping their sports-car division.
It’s amazing a Team like Renault F1 can wind 2 WDC with the budget they have. Toyota is doing better this year than the last 2 years but Honda and Toyota suck ass and the still promote F1 as there inspiration for their cars. I’m glad I don’t own 1 lol.
I do not know the answer, but what does the $400+ million budget compare to with the rest of the company’s figures. What is their revenue and other budgets. I really wouldn’t be surprised if $400 million is a drop in the bucket for them. Especially when they are in F1 mostly for the exposure of their brand. Marketing is a powerful tool.
Oh wait, I forgot. Most of that money that they receive is from sponsors paying to have their name plastered on that car. What does Marlboro pay Ferrari? I think it is around 30 Million Euro’s ($50 million). Now add all of the other smaller sponsors. lol. So a good chunk of their budget isn’t even Toyota’s or Ferrari’s money, it’s their sponsors.
Talking about massive spending: Singapore F1 premiers this weekends. The first night race in F1 history. (And no, they are not doing rally-car-style front-mounted light-pods… That would be so cool!) Here is an internet scavenger hunt for you: how many lights are they using and how much does that kind of voltage costs. Hint: a LOT! Here is a video of Rosberg doing it in a simulator: http://www.gridcrasher.com/index.php/2008/09/24/video-nico-rosberg-does-a-lap-of-singapore-on-the-simulator
THat track looks tight and man they go through a lot of interesting areas of the city. Kinda like a NFS Game. Good find Rayden.
Louis, I think Ferrari has more to them than just the car company. I wouldn’t be surprised if the owner has ventures in real estate and other companies, along with the massive amount of sponsorships, to generate the capital he needs each year.
Actually not really, Dennis. Ferrari S.p.A. is a subsidiery of Fiat S.p.A. (which has over $65 billion in sales each year) and has no holdings or interests outside of its automotive brand. It doesn’t need to since as of 2005 its brand value was hovering around $3.5 billion. As I understand it they make a killing on “apparel, accessories, games, leather items, books, and leisure items” that they offer online. Talk about milking your brand.
Oh, and to put Toyota financials into perspective, its total profits after taxes for the 2008 fiscal year was over $17 billion. In other words, Toyota can buy Ferrari about five times each year.
A little off topic, but last time I checked Toyota owns/is Lexus. And Lexus has some really nice cars. Nothing compares to the GTR (duh…) but they have improved in a lot of places. I’ve driven in a IS350, they’re nice.
About the money spent compared to the points won, it is a little sad that Toyota tops the pay list but is doing so poorly. But money doesn’t always buy the best designers/drivers (Glock and Jarno are very good drivers, but they’re no Massa/Alonso/Hamilton, imo). I’d personally rather work for Ferrari over Toyota, even if the pay was more at Toyota. Its the prestige and history.
Don’t forget, sponsor money in F1 must be insane. It wouldn’t seem like it on this side of the ocean, but I’m pretty sure European companies pay a pretty penny to be placed on the Ferrari cars (where they get a good chunk of the 400mill).