5 Strategies Motorsports Racing Teams Can Implement Today to Cut Costs Without Sacrificing Performance
Every year, costs go up: fuel, freight, parts, labor.
And now we should add tariffs to the mix.
Meanwhile, sponsorship dollars are harder to secure, and prize money can’t be relied on to keep pace either as both fall under the squeeze of tough macro-economic conditions.
The result? Teams are burning through budgets faster, with less margin for error. Without proactive cost management, many risk being priced out of competition—or forced to make painful compromises that hurt on-track performance.
Doing nothing is always a choice, and an understandable one: it is easy to make.
At least in the short-term.
However, in times where costs do not go down, this choice.means falling behind, or closing up shop completely.
Finding Motorsports Sponsorship to Go Racing Is About to Get A Lot More Difficult
As costs increase, the cost for teams to make it to the track will increase. As this happens, it follows that the cost for a seat will increase as well.
Imagine that you had a plan to secure an amount to fund a season, and all of a suddent, that cost goes up 10%-20%, perhaps more.
How would you approach that?
More critically, we have to put ourselves in the shoes of sponsors. Whereas they might have been inclined to provide sponsorship to a driver or race team, are they as likely to scale - or even maintain - that support in a case where, for instance, their business has been greatly disrupted by the implementation of tariffs?
How Tariffs Could Re-Shape the (Already Stressed) Economics of Racing and Motorsports
One might not think that tariffs would come up often in paddock conversations, but increasingly, it appears that they should. For the last several decades, the motorsports industry has operated under a globalized paradigm, but geo-political developments are such that trade policies and cross-border regulations could play a significant role in shaping budgets, logistics, and long-term planning.
From international freight to spare parts and raw materials, tariffs are set to become a hidden cost driver—one that’s easy to overlook until it begins impacting performance or squeezing cash flow. Whether you compete domestically or internationally, understanding how tariffs affect racing operations is now a must for anyone managing a program.
This article breaks down how tariffs could affect motorsport, who’s most exposed, and what teams and drivers can do to stay resilient in the face of economic and geopolitical volatility.
Addressing Cost Escalations In IndyCar Via Growth
In a recent article for Racer.com, Marshall Pruett gave some hard-data to back up the assertion that cost escalations are hitting the heritage racing series hard.
In his piece, Pruett writes that 2024 IndyCar budgets soared as teams faced substantial cost increases—from 20% to over 40%—driven by new components, rising driver and crew salaries, and stiff competition for top talent.
While hybrid powertrains were often named as a culprit, owners also cited labor expenses as the biggest burden, with some paying premium wages to retain employees.
Despite hopes that costs might stabilize in 2025, many anticipate further hikes due to continued inflation, upgraded car parts, and an ongoing struggle to secure skilled personnel.