Estimated Team Budgets [2006]

About this time of year F1 Racing publishes a detailed estimate of each
team's budget. The March issue does have an article, but there is very
little detail in it.

These are the estimates for 2006.

Toyota $418.5m
Ferrari $406.5m
McLaren $402.0m
Honda $380.5m
BMW Sauber $355.0m
Renault $324.0m
Red Bull $252.0m
Williams $195.5m
Spyker-MF1 $120.0m
Toro Rosso $75.0m
S. Aguri $57.0m

Other estimates include,

Budget Split (based on a $400m budget)

Engines $200m
R&D $35m
Manufacturing $30m
Capital Exp. $25m [new equipment, wind tunnels, computers, etc.]
Race team $25m
Drivers $20m
Test team $20m
Hydraulics $15m
Rent, bills $15m
Sponsor chase $15m

Wages are included in each category above.

Staff Levels (based on average of 600)

Manufacture 200
Engine 100
R&D 85
Aero 75
Race team 45
Test 35
Engine 35
Marketing 25

Before you ask I don't know why "Engine" shows up twice.

Less precise estimates

Honda spent $250m on their engine program. Toyota, McLaren & Ferrari
did not spend much less. Renault only spent about $125m. Cosworth
produced a first-rate V8 for just $15m.

Wind tunnels cost about $40m to build and about $20m per year to run
24/7.

One chassis costs about $500k to build. Operating costs for a season
can be as much as $40m.

Ferrari & Toyota employ between 800 and 1000 people which costs some
$40m in wages. McLaren have not been far behind for some years. Red
Bull upped the stakes by offering double wages to poach staff from
other teams. Newey's $10m salary is almost as much as Jaguar spent on
their wage bill.

Driver Salaries

These are the top 10 estimates for 2007

Kimi $51m
Ralf $25m
Alonso $22m
Button $18m
Rubens $12m
Trulli $10m
Massa $8m
Fisi $7m
Webber $5m
Sato $4.5m

Right at the bottom of the scale is Davidson at less than $1m, although
I think DC was more or less driving for free last season?

Travel

I enjoyed F1 Racings comparison, "Ferrari fly their staff around the
world in business or first class and stay only in four or five star
hotels, whereas Williams use EasyJet and local B&Bs."

Travel costs between $7-$10m per team per year.

Chasing Sponsors

Top teams spend about $15m chasing sponsorship - most of it going
to agencies. Hospitality and events costs vary widely - McLaren's
launch in Valencia was said to have cost $10m.

Renault spent an estimated $252m to collect 206 points which is
just over £1.5m per point, Toyota spent nearly $12m for each of
their 35 points. Williams spent nearly $18m per point.

Unrelated to the above, F1 Racing corrects their previously
published estimate of the value of Williams' title sponsorship
deal with AT&T. Original estimates were of $90m over three years.
However, adjusted estimates put the figure at only around $10m
per year, making AT&T Williams fourth biggest sponsor (RBS $20m,
Lenovo $120m over 5 years [$18m in year 1], & Petrobras ($13m).
Williams have been quite canny in getting a really big name
title sponsor "on the cheap". Something that has upset some of
the others.

--

Brian W Lawrence
Wantage,
Oxfordshire, UK
Brian_W_Lawrence@msn.com

On Fri, 23 Feb 2007 11:42:12 -0000, Brian Lawrence wrote:

> Wind tunnels cost about $40m to build and about $20m per year to run
> 24/7.

Those figures look suspicious on two counts. $40m sounds cheap for building
a tunnel, the ones I worked on cost more than that to build in the 1970s.

And $20m to run sounds too high. Although the electricity costs are
<$frightening> you can't run a wind tunnel 24/7 it takes significant time
to set up for each run and the actual operating cycle probably pans out at
no more than 48h/168h. The people I worked with had a reputation for making
the most efficient use of tunnel time in the world, even they would be
pushed to run the tunnel for more than 30% of the time.

$20m exceeds the budget for the tests we used to run for three F1 teams
each year in both a full size and a 5 metre working section tunnel.

	#1
Brian Lawrence	Estimated Team Budgets [2006] About this time of year F1 Racing publishes a detailed estimate of each team's budget. The March issue does have an article, but there is very little detail in it. These are the estimates for 2006. Toyota $418.5m Ferrari $406.5m McLaren $402.0m Honda $380.5m BMW Sauber $355.0m Renault $324.0m Red Bull $252.0m Williams $195.5m Spyker-MF1 $120.0m Toro Rosso $75.0m S. Aguri $57.0m Other estimates include, Budget Split (based on a $400m budget) Engines $200m R&D $35m Manufacturing $30m Capital Exp. $25m [new equipment, wind tunnels, computers, etc.] Race team $25m Drivers $20m Test team $20m Hydraulics $15m Rent, bills $15m Sponsor chase $15m Wages are included in each category above. Staff Levels (based on average of 600) Manufacture 200 Engine 100 R&D 85 Aero 75 Race team 45 Test 35 Engine 35 Marketing 25 Before you ask I don't know why "Engine" shows up twice. Less precise estimates Honda spent $250m on their engine program. Toyota, McLaren & Ferrari did not spend much less. Renault only spent about $125m. Cosworth produced a first-rate V8 for just $15m. Wind tunnels cost about $40m to build and about $20m per year to run 24/7. One chassis costs about $500k to build. Operating costs for a season can be as much as $40m. Ferrari & Toyota employ between 800 and 1000 people which costs some $40m in wages. McLaren have not been far behind for some years. Red Bull upped the stakes by offering double wages to poach staff from other teams. Newey's $10m salary is almost as much as Jaguar spent on their wage bill. Driver Salaries These are the top 10 estimates for 2007 Kimi $51m Ralf $25m Alonso $22m Button $18m Rubens $12m Trulli $10m Massa $8m Fisi $7m Webber $5m Sato $4.5m Right at the bottom of the scale is Davidson at less than $1m, although I think DC was more or less driving for free last season? Travel I enjoyed F1 Racings comparison, "Ferrari fly their staff around the world in business or first class and stay only in four or five star hotels, whereas Williams use EasyJet and local B&Bs." Travel costs between $7-$10m per team per year. Chasing Sponsors Top teams spend about $15m chasing sponsorship - most of it going to agencies. Hospitality and events costs vary widely - McLaren's launch in Valencia was said to have cost $10m. Renault spent an estimated $252m to collect 206 points which is just over £1.5m per point, Toyota spent nearly $12m for each of their 35 points. Williams spent nearly $18m per point. Unrelated to the above, F1 Racing corrects their previously published estimate of the value of Williams' title sponsorship deal with AT&T. Original estimates were of $90m over three years. However, adjusted estimates put the figure at only around $10m per year, making AT&T Williams fourth biggest sponsor (RBS $20m, Lenovo $120m over 5 years [$18m in year 1], & Petrobras ($13m). Williams have been quite canny in getting a really big name title sponsor "on the cheap". Something that has upset some of the others. -- Brian W Lawrence Wantage, Oxfordshire, UK Brian_W_Lawrence@msn.com

	#2
Steve Firth	Re: Estimated Team Budgets [2006] On Fri, 23 Feb 2007 11:42:12 -0000, Brian Lawrence wrote: > Wind tunnels cost about $40m to build and about $20m per year to run > 24/7. Those figures look suspicious on two counts. $40m sounds cheap for building a tunnel, the ones I worked on cost more than that to build in the 1970s. And $20m to run sounds too high. Although the electricity costs are <$frightening> you can't run a wind tunnel 24/7 it takes significant time to set up for each run and the actual operating cycle probably pans out at no more than 48h/168h. The people I worked with had a reputation for making the most efficient use of tunnel time in the world, even they would be pushed to run the tunnel for more than 30% of the time. $20m exceeds the budget for the tests we used to run for three F1 teams each year in both a full size and a 5 metre working section tunnel.