Every viewer associates Formula 1 with two “huge things”: speed and money. Moreover, if speeds in F1 are measured in three-digit numbers, then financial numbers have many more symbols. Here’s how much it costs to start your team from scratch. You can bet on F1 races at Mostbet: there are good odds for all major sporting events.
Minimum threshold and FIA requirements
In 2023, the FIA launched a tender to add new teams and published a list of requirements for those who want to start. Haas (closes the top 10 of F1) even admitted that they would not be able to qualify now. During the year, 6 applicants were found, and 5 of them were rejected. They accepted Formula E’s application with promises of help from General Motors and a grandiose factory “cooler than Ferrari’s.” For comparison: the previous time (in 2009) the FIA received 15 applications. Of these, 12 were reviewed, 9 were interviewed, and only 4 received approval.
The list of mandatory requirements now includes an entrance fee, a business plan for at least 5 years, a lot of money (to not only start but also continue to finance the project further), a technical base, and approval from the FIA, which will evaluate the reputation and weight of the brand.
Entry fee
To enter the Grand Prix under the Concorde Agreement, a certain amount of potential compensation must be paid into the overall prize fund. This is needed by rival teams to avoid feeling the negative impact of your entry in the coming seasons due to the dilution of the income pie among more members.
Currently, the fee is formally $200 million, but “Andretti” is already demanding no less than $600 million and refuses to allow joining before the expiration of the old Agreement. Even if the Americans manage to get through, any subsequent team will undoubtedly be spun up to the maximum amount.
Superbase, simulator, wind tunnel
“Mercedes” has allocated $38 million for the construction of new facilities alone and plans to invest another $50 million in equipment and outfitting, while the new super base of “Aston Martin” is estimated at $250 million.
It is precisely this base that should be taken as an example, the foundation, and the starting point: after all, both logistically, structurally, and in terms of content, the “Aston Martin” base is the freshest and is conceived as the most modern, advanced, and technological. Other teams are currently only finishing and expanding the old, so the example of starting “from scratch” by the “green” team is the most indicative.
“Andretti” planned to open a branch in Britain. The process will cost the same $250 million as for “Aston Martin”: finding something cheaper for three or four top-class buildings in Britain in a convenient logistics hub will certainly be a non-trivial task.
What did the English team get for such money? Three key production buildings with a total area of 37 thousand square meters: one for a wind tunnel, a stand, and a “test track,” the second for the design department and all basic operations like physical production, assembly, and preparation, and the third for organizing logistics, pit stop drills, and the full cycle of training for track crews (from gyms to meeting halls). The base was initially laid out as the best at the moment in F1 with a focus on the full design and production process of every bolt of the car if needed – except for the engine (they usually require their own facilities and divisions – as with everyone else).
However, the cost only includes construction and basic facilities such as machines, offices, and gyms – wind tunnels, simulators, supercomputers, and stands are always calculated separately. The highest-level wind tunnel from scratch costs $60 million. The top-level piloting simulator for testing updates, settings, new tracks, and drivers’ skills – indispensable now in F1 – is estimated at $15 million. This is exactly how much “Ferrari” paid for the innovative Dynisma stand. Next come test stands, supercomputers, and CFD simulators. It is impossible to calculate their exact cost, but the difference in the cost of building the “Mercedes” base extension and the total investment in facilities and equipment was not in vain at $50 million.
Team + engineers for creating a racing car
At the same time, it will also be necessary to start physical production of the car as a base; otherwise, the whole endeavor will be meaningless. Previously, these sums could strive for infinity depending on the depth of pockets, urgency, generosity, and personal views (for example, “Toyota” used to inject up to $600 million per year), but since then, F1 has changed significantly. All operational expenses of this kind are limited by a ceiling, and it is known. Plus, there’s simplicity and predictability in spending!
Taking into account the current calendar and the number of sprints along with the current budget caps (and other conditions will only come with the new Concorde Agreement, which is not even in draft form yet), then with additions for sessions and potential accidents on operational teamwork, one can immediately plan for $135 million. If the current teams manage with this amount, then a newcomer should too.
Administrative costs like accounting, management, and the payment process for reporting and interacting with government agencies also need to be covered, and they are not subject to a ceiling. For example, “Mercedes” allocates them separately in the report – and there they are estimated at $20 million per year.
The marketing department is one of the most important components of any F1 team! Expenses including all catering, service structures, and costs for organizing special events at Grand Prix events amount to $115 million.
The average salary of an F1 driver at the moment is $11 million, and the recognized “big three” (“Ferrari,” “Mercedes,” “Red Bull”) pay their drivers an average of $25.6 million – hence the myth of huge fees in racing.
However, when creating a top team, at least one will have to be given a “star” salary, and the other will receive an average or near-median salary. The total could come out to around $36 million for two – including a potential cheap reserve, but still excluding the youth academy!
