Formula 1 is most probably the hardest sport in the world. I say this not to disown other sports, but it is the only sport in the world that goes beyond the player, or I should say driver. The driver is a very small part of the team. It includes engineers, scientists, and others who make sure everything is running smoothly. Unlike other sports too, there is absolutely no room for error. One mistake, and that’s it, you just lost the race. It is impossible to recover from a mistake when the average speed of an F1 car on the track is over 180mph. After hearing all this, you may be wondering if having an F1 is cheaper than a normal sport, it’s not.
Although all the cars on the track look exactly the same, they are all completely different. Each one has a different engine, and a different team. The team basically decides whether or not you win. If you got stuck with a bad engine, that’s your problem, not others. So everything is different (not just the engine). The most common thing heard or said is that you do not have to spend a lot of money on F1 to be a good team, but this statement is wrong.
To start, you have to set up a team. This team will not be cheap. You will have to hire professionals, and train everyone to do their job, just like the pit crew is trained to do a sub 3 second pit stop. Then comes the development. The development of the car is based on statistics, and feel. Often, the team will meet up with the two drivers and individually discuss what they think needs to be done to their car. The cars are very expensive to fix and produce, with the most common price tag of $15,000,000 per car.
How do you win Formula 1? It is simple, you have to be excessively rich. The teams that underperform are not due to the drivers, but the investment they put into the cars. For example, the lesser F1 team Haas spends around $100,000,000 on the development of the team with a couple dozen team members and developers. Then comes the all time record holder which has an average spending of over $400,000,000 in the development of the team, and has over 1,600 staff in their department per year.
If they are spending this much money, it may seem pointless to enter, but there are advantages. The Formula 1 company gives away a total of $913,000,000 per year in prize money (as in winning races), so if you spent the 400 million dollars that Mercedes spends ensuring that their car will not lose, you could be setting yourself up for a huge profit margin. On top of this, companies join F1 for recognition. The more you win, the more well known your brand is which can set you up for more sales.