The Price of Formula One Racing

Formula One racing is indeed a very costly sport that’s why corporate sponsorship has always been important in keeping a top-notch team. F1 racing budgets have been reported to range approximately from 66 million dollars up to 400 million dollars. These amounts seem to be quite right when considering the expenses necessary for design and for supporting a champion team.

Specially designed vehicles are F1 champions’ keys to success. A team needs innovative and ingenuous engineers and designers who can produce ways of improving racecar designs, speed, as well as driver safety. Inevitably, these people would require high-end computers and testing equipment to support their studies. Also, new ideas must be custom defined before it undergoes vehicle testing. After that, the vehicles needed to be track-tested to determine if a new feature would work to the team’s advantage. An example of this would be the wind tunnel testing done for aerodynamic purposes.

Ferrari - Formula 1

Aside from these costs, safety concerns must also be met according to FIA regulations. The latter requires specialized fabrics in making F1 overalls for race drivers, helmets, and even parts of the racecar itself.

The repair and maintenance of used F1 race vehicles also require very expensive costs. Although required to last an entire race weekend, race engines are replaced with a new one before each weekend. This will eventually require multiple tire changes while on a race and a specially formulated fuel would be needed to run the racecars. Numerous replacement parts must also be within reach in pits during an ongoing race to upgrade and make necessary changes for the cars during pit stops.

Since F1 racing is held all over the world, transportation budgets are also to be considered. European races permit teams to move their cars, equipment, motor homes, and even their kitchen equipments through the use of a truck convoy. Outside Europe, jumbo jets are usually the required means of transportation for the said necessities and of course, fees are charged for excess weight. During the race season, F1 teams must also allot a budget for food and lodging to cover each team member who will participate throughout the race. Aside from team members, there are also people behind-the-scenes who perform vital roles such as coordinating travel details and advertisement and publicity campaigns.

If a new team would like to join the world of F1 racing, there is but another important factor to consider. The FIA requires an up-front payment amounting to 47 million dollars. This will eventually be repaid to the team throughout the season.

The 1990’s caused a high increase in expenses for F1 racing due to new technological innovations. Team who has been receiving support from large auto manufacturers as well as other corporate companies had the advantage. In contrast, independent teams were unable to keep up with the new financial demands. As a result, twenty-eight teams have left Formula One racing.

The sport’s popularity attracts many corporate sponsors due to its merchandising opportunities. Sponsorships are used to offset a team’s increasing expenses. So as the sport receives higher financial demands from newly created technological advancements, sponsorships would continually be welcomed and would proliferate as the sport likewise continuously develops in popularity.

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