Episodes / Episode 05
Why F1's Newest Team Reportedly Paid $450M
Formula One's newest team reportedly paid $450 million just to join, and it didn't come with a car. So Ray started his own team, Broke Racing, to find out why. The $215 million spending cap and its VIP lane, the wind tunnel, the factory, a whole season on the road, and the money that turns a broke team into a $3 billion one.
427,000 rent-yearsChapters
- To get in (reported)
- $450,000,000
- To spend, under the bar (2026)
- $215,000,000 / yr
- In the VIP lane
- no limit
- The car (estimate)
- ~$20,000,000
- Most valuable chair (2025 estimate)
- 427,000 rent-years
- Start date
- before humans
Total: A $20M car in a $450M parking spot.
Sources
Numbers in the episode are estimates built from these. If you spot a mistake, tell Ray: hello@brokeray.com.
- Entry (anti-dilution) fee of $450M, reported via BBC Sport sources: Crash.net (Mar 2025)
- Fee reportedly split among the other ten teams, ~$45M each: Jalopnik (Mar 2025)
- 2026 cost cap $215M and excluded costs: FIA 2026 F1 Regulations, Section D (Financial)
- Cost cap explained (what is excluded): formula1.com (Apr 2026)
- 2021 breach: 1.6% over the cap, $7M fine: FIA review (Oct 2022)
- Wind tunnel rationing, 70% for the champion to 115% for a new team: FIA 2026 F1 Regulations, Section F
- Best-paid driver ~$70M a year (reported): RacingNews365 (2026)
- Average headcount ~1,246 at one top team (2025 company accounts): GPFans
- One top team's 2025 company accounts (revenue and operating profit): The Race
- Car (~$20M), steering wheel (~$50,000) and front wing (£100,000+), estimates: Motor Sport Magazine (Jan 2025)
- "Circa 15,000 bespoke components": formula1.com (Apr 2023)
- 13 dry sets (52 tyres) per driver per weekend: formula1.com (2026)
- Six identical garage kits, some by sea: a team's own Q&A page (Aug 2024)
- Las Vegas Grand Prix contract through 2037: FOX5 (Jun 2026)
- F1 revenue $3.9B and $1.4B paid to teams in 2025: Liberty Media FY2025 results
- Biggest sponsorships ~$100M a year (reported): BlackBook Motorsport (Aug 2025)
- 2018 sale for ~$117M: Reuters via Euronews (Oct 2018)
- £240,000 in the bank at administration: GPFans
- Team valuations 2025 ($6.4B top, ~$3B for the 2018 team), estimates: Sportico (Nov 2025)
- Homo sapiens, about 300,000 years: Smithsonian National Museum of Natural History
The $450M entry fee was reported, not officially confirmed, and its split among the other ten teams (~$45M each) appears in one report. Team values, car and part prices are published estimates. The $600M+ figure is derived from one top team's 2025 company accounts (revenue minus operating profit) and may include work outside Formula One.
Shorts from this episode
Not financial advice. Narration: synthetic voice (ElevenLabs). Script and animation made by hand.