64
THE DYNAMIC ECOSYSTEMS OF MAJOR SPORTS
Two tables illustrate the resources a F1 team commands and the ways these are
parceled out between various technical and operational requirements. Table 2 de-
picts the ability of teams owned by car manufacturers to outspend other teams.
Only McLaren, one of the sport’s greatest and best funded innovators, sits among
the manufacturers’ teams. The least of the manufacturers has more than double the
resources of Red Bull Racing.
Table 2: 2008 F1 Team Resources
Toyota:
$445.6m
McLaren:
$433.3m
Ferrari:
$414.9m
Honda:
$398.1m
Renault:
$393.8m
BMW Sauber:
$366.8m
Red Bull Racing:
$164.7m
Williams:
$160.6m
Toro Rosso:
$128.2m
Force India:
$121.9m
Super Aguri:
$45.6m
Total:
$3,073.5m
Source: “Canadian Grand Prix: In Formula One,
Money’s No Object”,
The F1 Blog
, 19 June 2006,
/
canadian_grand_prix_in_formula_1_ money_s
(accessed 18 February 2011) citing the March
2006 issue of
F1 Racing
.
Table 3 shows a partial Toyota cost breakdown from 2005, a year in which the car
manufacturer spent nearly $500 million on its F1 team. Noteworthy here is the dif-
ferentiation between technical and operational categories of expenditure. Engines
alone may consume up to half of a typical team budget; in 2005, Toyota put about a
third of its budget ($180 million) into engines.
40
But as the case of Toyota illustrates, outlays do not necessarily translate into Champi-
onship Series points, and in 2008-2009, Toyota, Honda, and BMW all withdrew from
F1 racing, citing the recession and the crisis of the global car industry. Mercedes Benz
rejoined the sport in 2010, making Ferrari, Renault, and Mercedes the lone manufac-
turers in F1 competition.
Table 3: Toyota F1 Team Partial Cost Breakdown 2005
Research and Development:
$63.4m
Car-manufacturing Costs:
$2.8m
Wind Tunnel Costs:
$13.1m
Operating Cars at Tests:
$77.5m
Operating Cars at Races:
$29.7m
Team Salaries:
$68.5m
Engine Budgets:
$180m
Driver Salaries:
$39.5m
Travel and Accommodation:
$13.0m
Corporate Entertainment:
$11.5m
Note: Including sponsorship, supplier deals, prize money,
team owner contributions, tyre provision, and supply of
engines where appropriate.
Source: “Toyota has $445.6m F1 budget”,
F1FANATIC: The
Formula 1 Blog
, 22 September 2008
co.uk/2008/09/22/toyota-has-biggest-f1-budget-4456m/
(accessed 18 February 2011).
© MONITOR QUEST LTD. 2011
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