Cadillac’s entry into Formula 1 has not just been a bold move of passion for racing but also a multi-million-dollar business venture. They have been making headlines with their potential driver lineup, their possibly amazing aerodynamic cars, especially given the new F1 regulations, and just how much they spent on this million-dollar dream. So, how much did it really cost the team to start a new F1 team? Let’s take a look.
Cadillac’s Biggest Investment: F1 Entry Fee
First off, the biggest chunk of Cadillac’s investment was the $450 million entry fee. This isn’t just a random amount. It’s called the anti-dilution fee, which is basically a payment made to the ten existing F1 teams to compensate for the prize money and revenues now shared with 11 teams instead of 10. Imagine joining a club late and having to pay the older members a big sum so they don’t lose out.
That’s exactly what the team had to do to get on the F1 grid in 2026. The $450 million is split equally among those ten teams, so each one gets $45 million. This fee alone is more than double what was originally expected when the current Concorde Agreement was made in 2021. Cadillac’s parent company, General Motors, negotiated hard to secure that spot, showing just how serious they are about making it to F1.
Infrastructure And Human Resources
PC: F1
But the $450 million is only one part of the story. Building and running an F1 team is notoriously expensive. Cadillac has set up multiple facilities across the US and the UK, including engine development operations in North Carolina, which cost about $140 million.
To lead the team, they hired experienced names from the F1 world, including former team bosses and top engineers, which itself is a sizeable investment, totalling almost $200-300 million.
Plus, for the first couple of years, Cadillac will run Ferrari engines while planning to build its own power units by 2028. This technical collaboration means there’s a lot of money going into research, development, and infrastructure, essential to compete at the top level.
So, How Much Did Cadillac Actually Spend?
In short, Cadillac started this journey with a minimum of $450 million just to get on the grid. Add the ongoing costs of car design, personnel, facilities, and race operations, and the total investment is easily in the hundreds of millions, and the total cost could have been around almost $1 billion. It’s a huge risk, but if there is any team that can pull it off, it’s Cadillac. The team is clearly betting big that this investment will turn into speed, success, and a new era of racing glory, so keep an eye on them next year as they might become the underdogs.
Also read: Did Cadillac Just Drop Their F1 2026 Driver Lineup? All Questions Answered
