The Economics of Everyday Things 110. Formula 1 Teams
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Oct 13, 2025 In this discussion, Steve Cripps, Chief Financial Officer at Williams Racing, shares his 16 years of experience in Formula One. He dives into how teams like Williams navigate the $3.5 billion ecosystem of the sport. Topics include the intricate cost structures of F1 cars, the impact of the cost cap, and the intense physical demands on drivers. Steve explains the importance of sponsorship revenue and how small performance tweaks can dramatically influence outcomes. He also reveals the challenges of logistics and the upcoming 2026 regulation changes.
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F1’s Technical Extremes
- Formula One is the pinnacle of global motorsport with the fastest cars and top drivers.
- Steve Cripps emphasizes bespoke engineering: each car has ~20,000 unique components mostly team-specific.
Williams’ Turnaround After Sale
- Doralton Capital bought Williams for about $200 million in 2020, prompting organizational change.
- Steve Cripps joined as CFO and led a five-year turnaround growing Williams to over a thousand people.
The Cost Cap Equalizer
- Liberty Media introduced a cost cap in 2021 to level the competitive field and stabilize teams.
- The cap captures R&D and race running costs but excludes marketing, admin, and driver salaries.