F1 money.

[he7lius]

I'm a very curious about this topic.

Where do Ferrari, Mclaren and Williams-BMW get $250 millions a year?? And even Renault.

I know its through sponsorship but still the sums to me don’t add up.
$250 millions = 10 x $25 million.
Know do u think Ferrari, Mclaren and Williams-BMW have like 10 of these sponsors??
I don’t think so.
TV money yes but still it can’t such a gap between the top teams and the lower teams.

Now Mclaren and Williams have Mercedes and BMW to help them out but about Ferrari??
Fiat is fucked so where does it come from??

Anyone with details on this??

I did a search on this topic but no results but nothing came up.

[sameerrao]

The teams keep these details very close to their chests. But lets to try to see what are the different kinds of sources

1. Title sponsor (E.g. Marlboro for Ferrari, HP for Williams) - will take care of a large chunk of the sponsorship in return for their name being prominently displayed on car (esp rear wings, etc) and title of team

2. Equipment Suppliers (Shell, Brembo, AP Racing, etc.) --> these are technological partners and invest money in the development of their products for use by the team. I assume the big players get these equipment for free

3. Other sponsors - pay for their stickers on the cars - E.g. Vodaphone for Ferrari

4. Engine Suppliers - The bigger pure racing teams like Williams, Mclaren, BAR get their engines for free along with development. The small fry pay for it. Manufacturers/racing teams like Ferrari, Renault and Toyota build inhouse - so you can say it is sponsored by their road car sales.

5. Tyres - I think all should get it for free (I'm not sure about Minardi though)

6. Share of television revenues (usually the team's take is based on their performance - no. of points scored/manufacturers championship position)

7. Drivers sponsorship - pay drivers bring money in - Jordan, Jaguar, Minardi

8. Merchandising sales - sales of Tshirts, flags, etc.

9. Sales of old racing cars to wealthy individuals - Sultan of Brunei for example

Therefore this budget that you quote for $300 MM or so is shared by a variety of companies....

[he7lius]

Thank for the reply.
But it's a huge amount of money.
$250M is still $250M

[sameerrao]

I found this link that talks about some of the money spent (age of article unknown) ....

http://www.sportnetwork.net/main/s85/st21685.htm

I personally think Phillip Morris will be paying something like $100MM to Ferrari. Why take a look at the following suit filed by Jordan against Vodafone its title sponsor who was commiting to $150 MM over 3 years. I mean if suck-ass Jordan can ask for that much surely Ferrari would get a lot more....

http://www.f1journal.com/f1_finans/fin_special_030801a.html

[bobafett]

Ferrari spends over $450MM every year on F1 (number has been increasing over the past 5, well, it's been increasing over time as well).

McLaren, up til this year (not sure if it still holds, given their new complex, etc.) is spending ~300MM / annum on F1. Etc etc...

The cheapest team to run is Minardi, which operates on a shoe-string ~$40MM / annum.

--Dan