Why does it cost so much to field a race team today?
One of the most asked questions I get from fans, especially now in these tough economic times, is why does it cost so much to field a race team? As I mentioned a few days ago, it really wasn't that long ago — late 1990's — where you could field a car for $5 million — and a winning car at that. Now all you hear is that winning cars take $20 to $25 million a year to operate.
People want to know what teams do with all that money especially if you are a multi-car team. Do the math on a three or four car team bringing in $20 million per car. So what I thought I would do is give you an overview of what a race operation looks like today.
Back in the day, we used to call them shops. Now when you pull up in front of one, they almost look like palaces — 180,000 to 200,000 square-foot palaces at that. The first thing you will notice is big glass fronts with high arches. So you walk in the door and the first thing you will see is a receptionist, show room and probably a huge souvenir shop. In the show room you will probably find cars that just came off the track. There will be trophies, pictures and checkered flags.
Past that you will notice a lot of offices. There will be some for the owner, general manager, crew chiefs and on and on and on. Most race teams today try and do everything in-house for their sponsors. There will be a public relations department, a marketing department, a new business development department, a travel department, a human resources department. Guess what? All those departments take people and more people mean more salaries. You'll have a vice president of this and a vice president of that and they don't come cheap. You'll find a huge conference room where you can have big meeting or a presentation. Most will have a media room for interviews as well.
Next you will probably see a coffee area or even a restaurant with a chef on staff. Then you will see a workout room. You will probably find more workout equipment in one of these race teams than you will at your gym. Naturally, there is someone on staff who is in charge of that too. You have to have it to keep everyone in shape. Remember now — healthy body, healthy mind makes for a good employee.
Teams will also have an engineering department. The place will be full of offices and computers. They are doing all the high-tech stuff, focusing on engine, car and body design. Well these folks work hand in hand with the R&D department — research and development. They naturally have their own offices, equipment and people.
[Read the rest of DW's latest column . . . ]
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