The True Cost of Racing: A Comprehensive Breakdown of a Hypothetical LMGT3 Seasonal Budget
Before you get to the LMGT3 cost breakdown:
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Running an LMGT3 racing team is a thrilling endeavor, but it’s also an expensive one; take a look at the quote below for a vivid illustration of the sums involved.
For teams racing for track success, managing finances effectively on and, crucially, off it can make or break a season.
“At the moment budgets are a massive talking point, in particular LMGT3 and for that matter for teams that are aspirants, privateer entrants in the future in hypercar, let alone the manufacturers who pick up most of these bills.
When you look at the kind of budgets that we’re talking about now for an LMGT3 car, to give you an idea, it’s of the order… about 5, 5.2 million euros per season, for a GT3 car.”
Such a sum of money annually is considerable, so the need for strategic financial management is paramount. At Vaucher Analytics, a consulting firm dedicated to optimizing costs and increasing revenues for race teams, we understand the importance of every euro.
This insight article provides an in-depth breakdown of LMGT3 racing expenses, highlighting where budgets go and in the process highlighting avenues for cost optimization.
Summary cost breakdown of an LMGT3 car running for a full season.
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Important assumptions and disclaimers:
This breakdown is purely illustrative, based on research and best practices; no individual team’s information is being divulged.
We reached out to professionals in the motorsports industry for additional validation of these findings but for various reasons we were not granted any feedback. If you however would like to share your own thoughts with us please use our contact page or email us directly (contact@vaucheranalytics.com).
This analysis assumes that one car is being run. A second car will certainly add to the overall team cost and perhaps skew the allocations calculated in this article, but the extent to which this happens is out of scope.
As the quoted budget references an LMGT3 car, the length of the season and race locations are assumed to be the WEC’s; in another series, these cost drivers will likely be different and so the overall cost will follow.
You may want to generalize this study to GT3 cars. Though LMGT3 cars do differ from “conventional” GT3 cars (for instance, the use of torque sensors which can easily add tens of thousands of dollars to the cost of a car), the hypothesis at the moment - in the absence of other data and if the factors listed above are held constant - is that while absolute costs between the two will differ, the overall cost breakdown should be similar.
Even if cost structures for LMGT3 and GT3 are similar, the euro values quoted in this article are for LMGT3 cars only, and are current as of October 2024.
If you try to add up the bottom and/or top ends of each range, you will find that the sums do not total to 100%. We have opted to make the average of each range sum to 100%, with the implication that a given team’s actual share of overall cost will fall somewhere in the given range.
1. Personnel and team operations (36-39%)
The backbone of any race team is its people. Personnel and team operations represent one of the largest budget categories, generally around 2 million euros. To avoid confusion with findings further down, It’s important to mention that “team operations” are about keeping the team running and competitive, while “logistics and travel” ensure the team and car are physically present and ready to participate. Both are essential but cater to different aspects of a race team's needs.
With that in mind, the “personnel and team operations” category includes the following essential costs:
Driver salaries and benefits
Top drivers command high salaries, especially those with winning records. Driver compensation often includes bonuses for podium finishes, incentives for championship points, and sometimes even performance clauses based on qualifying positions.
Technical and support staff salaries
Running an LMGT3 car is a highly technical challenge, requiring skilled mechanics, engineers, data analysts, race strategists, and pit crew members. LMGT3 teams also require logistical support, including personnel who coordinate travel, equipment, and race-day logistics. Technical and support staff typically represent 15-20% of team operations costs.
Travel and accommodation for team members
This includes airfare, hotel stays, ground transportation, and meal allowances for drivers, engineers, and support staff at each event.
While team logistics are often viewed as a standalone category, in the case of this high-level analysis travel and accommodation costs for personnel fall within team operations. Indeed, some teams categorize personnel travel with their overall operational expenses (salaries, training) to get a clear view of costs directly tied to team functionality, whereas logistics focuses on the movement of non-human assets.
Other teams will prefer to place all travel expenses (human and equipment-related) under "Logistics and Travel." Either approach is defensible, but it’s essential to be consistent and clear about definitions within each category.
Your own cost structure and categorization preferences will of course be taken into account should you choose to engage Vaucher Analytics for a benchmarking or rationalization assessment.
Medical and safety provisions
Safety is critical in motorsport, and LMGT3 teams are no exception. The team invests in protective equipment such as helmets, fire-retardant suits, gloves, and harnesses for the crew, as well as ensuring medical staff and services are available on-site. While small in percentage, safety and medical provisions are vital for regulatory compliance and the well-being of team members.
2. Parts, maintenance, and repairs (26-28%)
LMGT3 racing puts immense wear on cars, especially when competing in endurance events. Teams typically allocate about 1.5 million euros to parts, maintenance, and repairs. This category includes:
Consumable parts
Tires, brakes, and engine components are subject to extreme stress and wear during races, requiring frequent replacements. For a season with multiple endurance events, an LMGT3 car can consume dozens of tires and several sets of brake pads.
Pit equipment and garage setup
Race weekends require specialized tools and equipment to conduct quick pit stops and make mid-race adjustments. Expenses here include everything from tire guns and hydraulic jacks to telemetry systems and mobile garage structures. This setup ensures the team can maintain peak efficiency during critical pit stops.
Routine and preventive maintenance
Preventive maintenance ensures that a car is safe and competitive, avoiding costly race-day breakdowns. Routine maintenance includes regular checks of the engine, transmission, and suspension systems. The team will often strip down the car after each race, inspect critical components, and replace any worn parts.
Repairs and damage control
Racing incidents are inevitable, from minor scrapes to major crashes. Repairing damage from an on-track incident or wear from extreme racing conditions requires a flexible budget, as unexpected damages can run high. Teams must be prepared with a stock of replacement parts and skilled technicians.
3. Logistics and travel (11-13%)
Transporting a LMGT3 car and equipment internationally is a logistical challenge. This category accounts for about 0.7 million euros and includes:
Vehicle and equipment shipping
For international races, teams must transport cars and equipment, often by sea freight for longer distances or by road for domestic events. Teams may also rely on logistical partners to streamline transport, which can help contain costs.
Customs and import fees
Cross-border racing comes with customs challenges. Equipment and cars must clear customs, which may include taxes, import fees, and inspections. These fees vary based on destination and the value of the items being transported.
Accommodation for non-personnel logistics
While travel and accommodations for personnel fall under Team Operations, accommodation for extra equipment or additional logistical staff required for overseas races is included here. These costs also cover storage facilities at the track, ensuring the team’s setup is safe and accessible.
4. Race entry fees and testing (9-10%)
Entry fees and testing account for roughly 0.5 million euros.
Race entry fees
Fees vary by race, but LMGT3 events generally charge significant entry fees to cover race hosting and safety provisions. Race entry fees also secure track time and resources provided by the event organizers, including race marshals, medical services, and safety cars.
Insurance
Insurance is essential in motorsport, covering liabilities for accidents, equipment damage, and in some cases, injuries to drivers or personnel; insurance costs are typically included, often within this category or sometimes as a separate item under “team operations”.
Here's how insurance generally fits into the budget:
Liability insurance: Covers potential damage or injuries caused during racing events, which is often required by racing organizations and circuits. This is typically bundled with entry fees, as most race organizers require proof of insurance for participation.
Car and equipment insurance: Protects the car and essential equipment (such as telemetry and pit tools) against damage during transport and racing incidents. While some teams opt for partial coverage to control costs, full coverage is common for high-value LMGT3 cars and equipment.
Personnel insurance: Includes health and accident insurance for drivers and crew, ensuring coverage for injuries sustained during testing, racing, or transport. Depending on team policies and local laws, personnel insurance might be required or vary based on regional regulations.
The allocation can vary, but insurance generally represents a relatively small share of the total budget, usually around 2-5% depending on coverage levels and risk tolerance. This cost can also fluctuate depending on the race locations and risk exposure based on the race calendar.
Track testing sessions
Track testing is vital for performance tuning, giving drivers and engineers time to adjust settings and improve car handling. Track rental fees are typically high, especially at premier circuits. In addition, testing sessions often require the same level of support as race weekends, including crew, consumables, and logistics.
5. Vehicle purchase/leasing and depreciation (7-8%)
Acquiring and maintaining an LMGT3 car represents around 0.4 million euros. Teams can either lease an LMGT3 car or purchase it outright.
Leasing vs. purchasing
Some teams opt to lease their cars, reducing the upfront cost but incurring a regular leasing fee. Other teams purchase a car and handle maintenance directly, which may lower costs over multiple seasons but requires careful depreciation management.
Vehicle depreciation
An LMGT3 car’s performance depreciates over time, particularly as manufacturers release newer, more competitive models. Depreciation is also influenced by the car's condition; a well-maintained car can remain competitive longer, lowering the frequency of replacement costs.
6. Fuel and other consumables (3-4%)
Racing a high-powered LMGT3 car is fuel-intensive, with each race consuming substantial volumes; fuel and consumables account for around 0.2 million euros.
Fuel costs
Fuel expenses are determined by race length, engine efficiency, and fuel prices. Generally, many teams negotiate bulk fuel purchases, securing a season-long supply at a fixed rate (this is made simpler for teams if a series-wide fuel sponsor exists).
Fluids and lubricants
Engine and brake fluids, oils, and other lubricants are vital for peak performance and reliability. This includes special high-performance fluids designed to withstand the demands of racing, adding incremental costs over the season.
7. Marketing, hospitality, and sponsorship activities (2-3%)
Marketing is essential for brand visibility, sponsor engagement, and fan engagement, but in LMGT3, it remains a smaller portion of the budget at an approximated 0.2 million euros.(which can climb higher if some of sponsorship’s hidden costs are not accounted for).
Hospitality for sponsors
Providing hospitality for sponsors during race weekends strengthens relationships and increases sponsor satisfaction. This may include designated hospitality areas, event tickets, and branded team merchandise.
Marketing and brand promotion
Many teams allocate a portion of their budget to digital marketing, public relations, and fan engagement. Activities include social media promotion, video content, and brand building through merchandise. These activities not only boost visibility but also help teams attract and retain sponsors.
Take the wheel: Start reducing costs and boosting revenues today.
Don't let costs undermine your race team's success. Partner with Vaucher Analytics to gain a competitive edge through financial optimization.
Contact Us Now
Website: www.vaucheranalytics.com/contact
Email: contact@vaucheranalytics.com
Let's drive your team to new heights together.
*Marshall Pruett Podcast #1553
Main image source: Baptiste Prat via Unsplash