Formula 1 - The business of money

Formula 1 is back, and with it one of the most expensive business in the world!

F1 is the most spectacular sport, with the fastest cars ever seen and with a big competitiveness between teams like Ferrari, BMW, McLaren, Red Bull, Renault, etc. These cars catch a speed of 300 km/h easily and these races don’t go unnoticed, the average viewing figures for different grand prix is over 354 million worldwide, this is a lot of people, and also a lot of money in marketing, publicity, TV, news, etc. Formula 1 makes a lot of money, but also they have many costs. According to many web pages, the supporting cast will shell out over $3 billion this year in team resources. This is a huge and extraordinary amount of money! And the team that spends more money is Toyota spending 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. Also the drivers have a huge payroll, an example is Michael Schumacher, when he was 6 times World Champion, and he reported to be earning $49 million per year. These years Fernando Alonso in Ferrari’s team is earning about $25 million per year (it’s not bad).

Finally the cost of maintaining the team is extremely expensive. They cars are too expensive, they use around 900 tyres in a year’s racing that cost $2,405.40, in total $2,164,860.03, wheels $57,729.60 all the year, the engine is the most expensive it cost about $288,648.00 per race so it costs $49,070,160.77 all the year. There are more elements in a F1 car as we can see in the photo under this text, so calculate the total cost of every car...

But think that despite all of these costs, F1 earns money!

Bibliography:

http://www.autoblog.com/2008/09/22/f1-teams-to-spent-over-3-billion-toyota-the-most/
http://www.bized.co.uk/current/mind/2003_4/080304.htm