Understanding and Managing Cost Drivers In Endurance Racing

Cost optimization
Written By David Vaucher

Managing costs in endurance racing is as critical to a team's success as performance on the track. From car acquisition to logistics, the financial pressures are immense, especially in global series like the World Endurance Championship (WEC) and IMSA, or even more regional series featuring GT3 or touring cars. In this article, we break down the key cost drivers in endurance racing and explore strategies for better cost management.

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1. Number of races and travel logistics

The more races in a season, the higher the costs, and endurance racing series like the WEC often span continents, with events in Europe, the Americas, and Asia. The cost of transporting cars, equipment, and personnel between these venues can skyrocket, especially for races requiring intercontinental shipping, such as Interlagos in Brazil.

This in and of itself is not the insight, in fact it’s obvious, “more races = more cost”. The difficult decisions come when teams consider expanding into other race series. Or, more hypothetically, these considerations could be imposed on teams at inflections points such as the one the WEC is currently facing in 2024, the so-called “Platinum Age of Endurance Racing”.

As the series expands, perhaps the WEC might one day want to expand the race calendar, having done their own, organizational-level cost-benefit analysis. At the team-level however, adding even one more race could have major impacts, and considerations such as the location of a new race and its timing come into play.

In either case, customs challenges add further costs, including delays that disrupt timelines. To minimize these expenses, teams can align their schedules with series-organized logistics or explore partnerships to consolidate shipping, and closely monitor global events to get ahead of shipping bottlenecks, tariffs, or any number of other, similarly cost-accretive considerations.

2. Fleet size

Running multiple cars greatly increases a team’s financial burden. By one estimate, a single Porsche 963 cost about $3 million in 2022, excluding maintenance, upgrades, or spares. Doubling the fleet doubles the costs (with some allowance made for overhead that can be applied to both cars)—but not necessarily the revenue opportunities.

If such doubling is imposed via regulations (such as the WEC’s two-car mandate in Hypercar), it may be more beneficial for a team to first build up confidence in another series which does not impose such a cost burden upfront.

Key takeaway: The cost-benefit analysis must be exhaustive when considering growing your fleet. An additional car carries the potential of additional revenue but it also carries all the risks that come with a race car, and the failures that come with team growing pains can quickly erase the existing gains of the first car.

3. Consumables: Balancing performance and cost

Racing is as much about managing consumables as it is about managing speed. Tires, brake pads, and fuel are all significant cost drivers. Investing in premium components—like higher-performing brake pads—can reduce consumption during races, but these advanced materials often come with higher price tags.

Key takeaway: Teams must conduct a thorough cost-benefit analysis. For instance, spending more on trick brake pads may save money in the long term if they reduce replacement frequency. Tracking the performance and lifecycle of consumables is essential to optimizing spending.

4. Equipment failures: The cost of DNFs

Did Not Finish (DNF) events are among the most expensive outcomes for race teams. A single mechanical failure can lead to repair costs, lost prize money, and diminished sponsor bonuses.

Investing in high-quality, reliable components is often worth the expense, especially when repeated failures are leading to DNFs. Preventive maintenance, upgrading key systems and driving to manage race finishes as much as podiums can help teams avoid these high-stakes failures.

5. Interdepartmental coordination: Efficiency wins races

How well does your team work together? Poor communication between engineers, mechanics, and drivers can lead to inefficiencies, increased costs, and missed opportunities. For example, do engineers design tools mechanics find intuitive to use? Are drivers giving mechanics actionable feedback? Is there a communications loop to ensure this feedback is implemented?

By fostering a culture of collaboration and using performance analytics, teams can reduce errors, improve efficiency, and ultimately cut costs.

6. The hidden giant: Logistics

Logistics costs consume a highly material portion of team’s seasonal budget. Transporting cars, parts, and personnel is costly and time-intensive, whether you’re going across state lines for IMSA or traveling internationally for a race in the WEC.

Key takeaway: Managing logistics is a vast topic that really needs to be studied on a team-level to yield the most beneficial cost savings outcomes. If your team can afford it, the cost-benefit analysis of hiring someone strictly dedicated to logistics may show substantial savings, especially if their performance is evaluated against well defined KPI’s.

7. Repair vs. replace: Smart decisions on wear and tear

Wear and tear is inevitable in endurance racing. But teams face a choice: repair parts or replace them outright? For example, there are wear parts on cars - even carbon fiber parts - that go beyond brake pads and tires that can be replaced, provided the right expertise and supplies are on-hand.

While this may seem like a trivial place to find savings, as the saying goes “every little helps”, especially if the original piece was very expensive to procure and the savings from repair are multiplied over many races in a season.

However, the decision to repair versus replace again depends on the cost-benefit analysis. If repairs are too labor-intensive or unreliable, replacing parts outright might be more economical in the long-term.

8. Rising technology costs

In the constant pursuit of keeping existing fans happy and bringing new fans in, the push for performance (and safety, of course) is driving up costs across all series.

Advanced aerodynamics, hybrid technology, and improved engines come with hefty price tags, and over time these are not seen as improvements, but rather just become the cost of admission (the FIA and the WRC seem to have recognized this is a hindrance to the long-term health of rallying, with its recent announcement that top-level Rally 1 cars will no longer need to feature hybrid powertrains).

To mitigate these costs, teams can stay on-top of regulations and forecast how their cost structure will change so as not to be caught by surprise. Additionally, if a team can adjust its timeline, it may choose to wait to run in a given series until it can buy used equipment, or evaluate how other teams fare under changing regulations.

9. Long-term contracts and sponsorships

Circuits often negotiate multi-year contracts with series like WEC, locking teams into specific logistical and financial commitments. While sponsorship deals can provide financial stability, they may also dictate team decisions, from branding to equipment choices.

To ensure flexibility, teams should negotiate contracts strategically, aligning them with long-term goals while leaving room to adapt to changing conditions.

10. Budget variability by series and class

The cost of competing varies widely by car class. For example:

Understanding what drives such cost differences is absolutely crucial for teams looking to step up their commitments elsewhere, or simply apply best practices to their current operations.

Key takeaways for teams

Managing costs in endurance racing is a balancing act between performance and financial sustainability. By focusing on efficiency, collaboration, and strategic investments, teams can reduce costs without sacrificing competitiveness.

Vaucher Analytics: Driving financial performance for race teams

At Vaucher Analytics, we specialize in helping race teams like yours take control of their budgets. From identifying cost-saving opportunities to implementing actionable strategies, our expertise ensures your team stays competitive—both on the track and in your finances.

Take the wheel: Start reducing costs and boosting revenues today.

Don't let hidden costs undermine your race team's success. Partner with Vaucher Analytics to gain a competitive edge through financial optimization.

Contact Us Now

Let's drive your team to new heights together.

Main image source: Sooi Meeus via Unsplash

David Vaucher
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