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The Economics of Everyday Things

110. Formula 1 Teams

The Economics of Everyday Things

Freakonomics Network

Business

4.81.6K Ratings

🗓️ 13 October 2025

⏱️ 24 minutes

🧾️ Download transcript

Summary

In a sport that generates more than $3.5 billion a year, teams compete in cars that cost $70 million to develop and build — and a split-second to crash. Zachary Crockett assesses the damage.

Transcript

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0:00.0

Hey, Zach here.

0:03.8

Just wanted to ask for a small favor.

0:06.0

We're running a little survey to learn more about who you are and what you'd like to hear more of on this show.

0:11.3

It's totally anonymous.

0:12.8

It takes less than a minute to complete, and it'll really help us out.

0:17.2

You can find it at freekonomics.com slash everyday survey.

0:21.4

That's freakonomics.com slash Everyday Survey. That's Freakonomics.com slash everyday survey, all one word.

0:26.2

Okay, on with the show.

0:37.3

A Formula One motorsport race always starts the same way.

0:42.6

20 cars line up in pairs.

0:45.6

Here come the lights for the Monaco Grand Prix.

0:48.5

As the engines rumble at the starting line, five red lights will turn on, one by one.

0:54.1

Three, four, five red lights will turn on, one by one. Three, four, five red lights.

0:56.8

When the lights switch off, the race begins.

1:00.0

In two tenths of a second, all 20 drivers release the clutch,

1:04.3

press the throttle, and accelerate.

1:07.1

And Formula One goes racing on the streets of Monaco.

1:10.9

Formula One goes racing on the streets of Monaco.

1:17.7

Formula One is the pinnacle of global motorsport.

1:21.4

It's got the fastest, most sophisticated cars and the best drivers.

1:30.1

That's Steve Cripps, the chief financial officer at Williams Racing, one of the oldest and most successful Formula One teams.

1:37.6

In the past few years, Formula One's audience has grown to more than 820 million fans worldwide.

...

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