[violation]

Where does their income come from? I'm talking mostly about non-works teams, like Flying Lizard in ALMS or Andretti Green Racing, or the many small teams running in Spec Miata or GP2 and things like that, or even the Williams team in F1?

Do they turn a profit? I imagine they must.

Is it just from TV money and sponsorships?

I ask this both out of personal curiousity but also for some light research related to a client.

 

[ultimateforce]

Losing money till the team owner gets a winning team then sells sponsorship on the car, the uniforms, etc.

 

[freedomgli]

It all depends. Some teams make money, some break even, and many others lose money from year to year. At top levels of motorsports financing comes in many forms but likely includes TV ad revenues distributed amongst all qualified teams via the sanctioning body, sponsorship, professional investors, bank loans, prize money, merchandising, etc. Some race teams are funded primarily or exclusively via independently wealthy benefactors.

 

[violation]

hm.. interesting info.

it's what i generally thought. i'm going to have to mull this over a bit.

other than logos, marketing strategies, and the like, it doesn't sound like racing teams really have any "trade secrets" related to their cars and such then, in as far as "trade secrets" are defined as anything secret that makes money for the team. those "secrets" are probably more the realm of their engine supplier or auto manufacturer. is this generally correct?

 

[j0oftheworld]

Most teams have sponsors who pay for the cars/trucks/tools ect.. then the team finds a rich doctor who'll pay $15,000/race to drive the thing!
It's a shame but that's how most teams from ALMS/speed WC/ on down to SCCA work.
Gotta be rich biAtch!

 

[simpl]

You dont make money racing in the US unless your in Nascar. straight up.

 

[webba1]

All these guys are correct. Sponorship is the only way to make any money. Even with that you still have to get their product to the winners circle!!!

The spec miata guys are either 1 of 3 types (of my experience). They are either a Hard working guy who can afford a few luxuries in life and wants to race on the weekend. Some rich doctor or lawyer who wants to rent a spec miata bumper car for a weekend from someone who makes his living buying up all the miata's they can find and gutting them to turn them into rental racecars (which would be the third).

The only expception to this rule is Ferrari. They are and have almost always been a "Race Team" that happens to make street cars.

 

[Full-Bore Motorsports]

Where does their income come from? I'm talking mostly about non-works teams, like Flying Lizard in ALMS or Andretti Green Racing, or the many small teams running in Spec Miata or GP2 and things like that, or even the Williams team in F1?

Do they turn a profit? I imagine they must.

Is it just from TV money and sponsorships?

I ask this both out of personal curiousity but also for some light research related to a client.

Haha there isn't a soul that makes money in Spec Miata let alone anything lower that SPEED TC or GT.

 

[F1Bob23]

You dont make money racing in the US unless your in Nascar. straight up.

Thats true, thats why you see AJ Allmendinger, Robby Gordon (he's been in it but a new team owner) because its where the money is.

I think Grand-Am is closest to NASCAR. The DP crowd keeps getting bigger, GT and Koni Challenge are great too.

 

[kung fu jesus]

when i lived in west michigan, i volunteered time to crew for an ALMS/Grand Am team. the 30 months i offered help, they used 3 different cars to field each year: Ferarri 360s, Porsche GT3 and the third year, they moved to Saleen S7s. For the most part, the owner financed the team himself. his company made the core of it's money hydroforming frames for popular SUVs. it wasn't a top echelon team, but we did ok. It had a lot of volunteers who sacrificed their vacation time (like me) to work for the team. There were paid crew members and technicians, but I was afforded plane tickets and stipends for hotels and food. Generally, though, I work about 12-15hours a day on these race weekends. i had to wear a uniform, had to keep team communications on me at all times and do what i was told. i did everything from inventory equipment for transport to catalog tires for each planned scenario to polishing the painted carbon fiber body work. it was hard work, but it was a lot of fun as you ride high on the enthusiasm of the team, the fans watching you and the owner (who was a stern, but genuinely nice man).

at that level, the teams are really a marketing tool. it a part of a business and you represent that business through that team. they DON'T make money, typically, but it's like advertising and perception. you get a group of organized people, passionate about the sport, and the car have the sponsors or company's logo on it and fans andthe general public associate the team's behavior and results on the track with the sponspr and/or company.

i got on this team through two contacts. first the HR director of the company i worked for was the wife of the crew chief. she would strike up conversations with us at work because you can SEE who is an enthusiast by stuff people have in their office. she invited me and two coworkers to tour the team's garage and to meet her husband. we all were HUGE car guys invovlver in some form of racing. we were hooked. also, a relative of mine owned a body shop and did all the paint work for the team's cars.

it was an awesome experience.

 

[ExHondaMan]

^^I give those privateer guys much,much respect. Have you seen SpeedTv coverage of ALMS racing? Or ANY type of racing that's not Nascar or F1? Notice anything? Nobody's watching it,lol. The grandstands are empty and it looks like only 40% of the seating is full.

They race for the simple love of racing, well, most of them.

 

[Matt [exz3owner]]

Haha there isn't a soul that makes money in Spec Miata let alone anything lower that SPEED TC or GT.

I hesitate to question you as I know you spend time in spec miata, but are you sure? There seem to be a couple garages that have a decent fleet of rental rides. And these can be expensive. I don't spend time in spec miatas, so I don't know for certain. Maybe these rental rides are a loss leader for a shop that makes a business out of building spec miatas? (like Team MER)

Its unfortunate, but racing really is a rich mans sport. MOST teams, DP included, and ESPECIALLY Grand Am, outside of NASCAR have a rich client who wants to go racing. Maybe they own the team, maybe the drive and pay a steep price to do so. Boris Said told me about a year ago that about 90% of the teams at the Daytona 24 had atleast 1 driver on them that was paying a large part of the bill. Look at the names of the sponsors of the car, and google the companies. Then cross that with the drivers list. More often than not, they are associated.


That is why it is hard to get paid rides in those classes. I talk to teams, and it takes time to figure out if they are interested in me as a driver, or as a customer...

matt

 

[belacyrf]

sponsor's...
I got to go to an IRL race and got to hang out in the Argent tent because my buddies company sponsors their car. So I had breakfast with Buddy Rice and Jeff Simmons, but Danika stayed in the trailer... she's quite the snob.

Literally they pay I think 10,000 a year for a very small sticker space... I mean it's REALLY small. It's 100,000 grand for actual visible real-estate on the car.

Most race teams lose money, once you make it into a series with big visibility, then the race teams make money.. but stuff like touring car, or the lower level racing, it's basically throwing cash into a bottomless garbage can.

 

[webba1]

Haha there isn't a soul that makes money in Spec Miata let alone anything lower that SPEED TC or GT.

Some rich doctor or lawyer who wants to rent a spec miata bumper car for a weekend from someone who makes his living buying up all the miata's they can find and gutting them to turn them into rental racecars (which would be the third).

]There seem to be a couple garages that have a decent fleet of rental rides. And these can be expensive.

There are some guys who do make a pretty decent living off spec miata's. I live pretty close to one!!!

They race for the simple love of racing

Same reason why college football will always be better than pro IMO.

 

[peteberta]

I've spent a little bit of time with the guys from Team MER. I'll be crewing with them in Cleveland. I can't say for sure that they are making money as I'm not the accountant but they seem to be doing ok. With one cup championship to their credit and leading this year has helped them become quite busy building cars, offering set-up services and doing driver coaching.

As far as I know all the tMER cars are rentals and all the drivers are paying for their rides in one way or another. Each driver has secured sponsorship on their own to cover the expenses but a lot still comes out of pocket or in sweat equity. I'm pretty sure the prize money is kept by the driver but it doesn't offset the rental fee So no, no drivers are making money in spec miata but a winning team can make money. You're just not making money racing, you're making money working, just like everyone else.

 

[Turns101]

Privateers ROCK!!

It sucks to be one sometimes though..

PS I need a sponsor

 

[Quinn]

What about Formula D guys? The actual drivers.

 

[NMDGBen]

What about Formula D guys? The actual drivers.

Depends on the driver.

Some are able to do it full time. Others are still working day jobs.

Anyone or anything you want to know about specifically?

 

[Quinn]

^^^ Not in particulcar, I was just curious. I would love to have a job on the show Top Gear and just do race for leisure.

 

[NMDGBen]

You don't have to be on a tv show to race in your leisure time.