Friday, 21 January 2022

SINGLE SEAT FORMULA 1: HOW MUCH DOES IT COST?

 


Hi guys, have you ever wondered how much it generally costs to make a single-seater Ferrari that can compete in Formula 1? Well, if your answer is “no, but I’m curious now” … we will find out in this article!

                                                                                                                                                                                           Every year Formula 1 attracts a huge audience all over the world and as always the top teams will battle for the scepter of world champion Formula 1 drivers and world champion Formula 1 Constructors.  Since it is very expensive, only very few brands in the world participate. Obviously, each team allocates a certain amount of money to participate in the world championship, which is for obvious reasons very expensive not only to participate, but also to invest in development to churn out a car that can compete at high levels. Today we are going to see how much a single Formula 1 car can cost. The data we are going to analyze refer to a single car and not to all the cars and to the replacement costs necessary in case of breakages.

How much do the various components cost?

Creating a Formula 1 single-seater is by no means a negligible expense for Ferrari, quite the opposite. The 2018 Red, the car driven by Sebastian Vettel and Kimi Raikkonnen cost the Maranello team more than 15 million euros. The cost is frightening and the most expensive component is obviously the Power Unit, which essentially uses an electrical component to virtually supercharge the turbine and use energy when needed, was undoubtedly the most expensive component: 14 million euros.

Immediately after we find the carbon fiber frame. It is the most complex structural element to be built. Therefore, the design and construction phase is very long, and it cost Ferrari 600,000 euros in 2018.

Immediately after there is the exchange with its cost of 440 thousand euros.

With 150 thousand euros instead it was possible to insert the hydraulic system.

The much vaunted front wing instead has a price of 130 thousand euros, while the rear one 75 thousand. The fuel tank 115 thousand euros.

Finally, there are the steering wheel which cost 47,000 euros, the halo (protects the drivers' heads, ed.) 15,000 and the 2,4 thousand tires.

 


Much of the cost of these components, however, is given by the type of sophisticated machines that are used to produce these uncommon components and by the very short time frame that teams have at their disposal to design and produce a single-seater. Last, but not least, the rider's equipment: a fireproof suit costs around 1,000 euros, shoes with high grip soles cost around 250 euros, the helmet with the "anti-whiplash" device costs around 7,000 euros and gloves with velcro on the palm cost around 150 euros.

  


How much does it cost to register for the Formula 1 championship?

Then there is the cost of registering for the Formula 1 championship, which according to some 2010 data, touches almost 5 million euros for the winner up to a base of around 500,000 euros for those who finish last in the standings. So, even a good amount just to sign up, but the poorest teams will always pay little. Yes, because, the registration fee varies according to the position obtained the previous year in the constructors' ranking and the points, with a fixed registration base, in this case about 500 thousand euros, and then a few thousand euros (in 2010 they were little more than 6,000,000 for the top teams and about 5,000 for the others) for each point won the previous year.

 


Sponsors and advertising

Formula 1 teams have millions of euros in budget every season and, of course, they are a long way from a normal business idea, as they spend every penny at their disposal to chase success. A sponsorship contract with a top team costs around 20 million euros per season but, paradoxically, it is more convenient for a team to spend it all to chase the victory rather than trying to manage them, and this is because if you win, the proceeds increase. Obviously it is difficult to understand and predict if the investment for a sponsorship can have a return but, in the event that a team is also a manufacturer of cars such as, for example, Mercedes or Ferrari, the return in image is certainly very, very positive. Or, we can present the Red Bull case which, by winning the world title four times in a row, has increased the value of the brand by about one billion euros. Typically, mid-table teams spend around € 170 million per season in four main areas: team management and operating expenses, wages (including drivers' salaries), research and development, and production and manufacturing costs.

 


 Cristiano, 3sc

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