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This is the final part of three articles on the costs of an American Le Mans Series campaign, including such items as the overhead of permanent shops and staff, cars, drivers, and travel.. Part 1 is here, and Part 2 is here.-Editor- It’s mid-March, 2009, and we’re on our way to Sebring with Last Turn Racing. We were at Wheels Down Winter Test at the same track in January, then returned to our shops north of here to finish preparing for our first American Le Mans Series season. Though the grid at the famous 12 Hours will be a bit bigger, as it usually is, by St. Pete we’ll be one of just twenty starters, half of us in GT2. It’s a pretty tough bunch, but we have a good car, and two pretty good pro drivers. You’d know them if we chose to tell you their names, but then we’d have to...
Fly-ins We identified and hired our permanent crew in Part 1. Now we need to provide for the rest of the crew that we need for our race weekends, and some of them, occasionally, for testing. These five temporary crew include two mechanics, a fueler, fire bottle, and tire man. Exact assignments will vary, depending on skills mix. An example: our truck driver is on the “deadman valve.” For someone else he might be our tire guy, or fueler. In any case, our team manager believes in crew drill, including cross-training. Our budget for weekend help is $85,000, based on 100 paid days. Shoes and Such We’ve got our Michelin contract in hand. We’re going to spend $235,000 on tires. Fuel cost in 2008 was about $20,000, and we might hope it’s down a bit, but VP doesn’t often get into a price war with our local gas station guy, so with testing and whatnot, we’re going to keep that number for this season. Feel the Power Our engine program, as we said in Part 2, is going to cost about a quarter of a million, actually $240,000. That’s based on four fresh engines, for Sebring, Petit, and two for the other races. Each, with shipping, is going to cost us $45,000. If we had opted for the prototype, make that $450,000. Parting Out a Ferrari (or Porsche) Either way, pieces for these things aren’t cheap, and even our drivers (of good old country stock) are going to occasionally scratch the paint and put a ding in a door. For the season, parts are going to cost us a quarter million, and painting and wrapping another $45,000, a $295,000 total. We’ll put our prototype at slightly more, $350,000. Essentials Just like in everything else, there are “fees.” Entry, license, insurance, stuff like that. There are two entry fees in ALMS, first the “season entry,” making use eligible for certain goodies and benefits (like some prize money, such as it is). That’s $25,000 for our GT or prototype. In addition, individual entry fees amount to $43,000 for our GT entry ($43,000 prototype). Add licenses and excess crew credentials of $1,500 in each case, plus an insurance cost of $65,000, and the category total is $135,000 ($140,000 prototype). Getting There in Style Not really. Our travel is economy air for personnel, and over the road for our equipment; we’ll have one “home track” for which many of us will be “locals.” Airfare will cost $45,000. We pay per diem for travel days, for which we’ll budget $15,000. Hotel costs will amount to $140,000. Perhaps with a weak economy we’ll do a bit better in 2009 than in 2008, but we don’t want surprises on the “upside.” Catering our team on event weekends will cost us $75,000. Rental cars, laundry, telecom and other miscellaneous costs associated with events are another $30,000. Transporter operating expense, mostly fuel, is $35,000. Summary of Racing Budget – Part 3 Costs | Fly-in Crew, Pay | | $85,000
| | Tires and Event Fuel | | $255,000
| | Engine Cost | (Prototype) $450,000 | $240,000
| | Parts, Paint and Wrapping | (Prototype) $350,000 | $295,000
| | Entry fees, Licenses, Insurance | (Prototype) $140,000 | $135,000
| | Airfare, per diem, Hotel, Catering, Rental Cars, etc. | |
$305,000
| | Transporter operating Costs | | $35,000
| | Racing Budget | (Prototype) $1,625,000 | $1,355,000 |
Cost Summary Table (1) | Core, or Team Overhead Cost – Part 1 | |
$715,000
| | Car and Drivers – Part 2 | (Prototype) $510,000 | $545,0002
| | Annual Racing Budget – Part 3 | (Prototype) $1,625,000 | $1,355,000
| | Average Annual Cost over 3 years | (Prototype) $2,850,000 | $2,615,000 |
1 Allocated to each year of a three year program.
2 Average of two methods.
Cash Flow Table (1)
| | Year 1 | Year 2 | Year 3 | | Cash Out | $3,555,000 | $2,440,000 | $2,440,000
| | Cash in (Capital Sale) | | |
$700,000
| | Net Cash Flow | ($3,555,000) | ($2,440,000) | ($1,740,000) |
1 GT using new purchase and upgrade method And if that isn’t enough, we’re reminded of some other functions that indirectly support our racing. We need a bookkeeper, at least part time. We need a media guy (or gal), and we need some pictures of us on the podium. That’ll add about $80,000. If we need someone to take care of our sponsors...and to go find new ones...
(My thanks to the many individuals in the sport who helped with these articles.-TWK-) |
