I calculated that my penalty in team race is about 70% at level 104. My friend has about 60% at level 127. And I feel sorry for RoyalSerf at level 154.
What will happen next? Nursing home for old ships?
This is a very small golden time for team racing, when you are already strong, but your penalty is very small.
Such restrictions don't give advantages to small ships and frighten off strong players from racing.
There is a natural limit on race time, respawn time and luck. And there are such motivators as the places of squads and players.
Remove limit and team race will come to life again. Players will learn tactics of racing, squads will guide their players to big mines and destroy mines in front of rivals.
Add rare items that can only be found in races, but at any level.

honestly I disagree with your statement that race favours larger ships, having 50 parts I tend to get beaten by people with 30 parts even though I sometimes manage to get 20k crystals (with cargo of 4,5k).

First - Thank you for the prompt response - not only to this message but also to repairing the bug in scoring.

Second - If i misunderstood your comment at the hangar - i apologize. But what I read at the hangar after the update was at this time team races was the only thing that counted towards the ability to add additional spots on squad. Perhaps I did not phrase the question correctly to have received that response but that i the impression I was left with.

Third - although Rob (comments below) is probably unaware of the recent changes that replaces players that do not try to score, and players that lose connection, he is not the only high level player that will no longer play in races. I believe if checked it will be seen that outside of races for bonus gems, there is a drop in participation by high level players. Some rather forgo the bounty bonus than participate. This is not just due to the second player on the team - but also due to the the scoring and the damage sustained. As an example - I was never able to beat 1armbandit's score in a team race - but I kept trying. We are both over level 100 (1arm is about level 180 and I am level 140). Since the change - he cannot beat my score and sustains more damage than ever before. We both really loved the game and i find it hard to see him and other players moving away from even this aspect the game which used to be one of the most fun. So if possible - I ask that the higher level player performance be re-evaluated in races to see if perhaps there is something that was not planned occurring with the scoring and damage rendered in team races.

@Rob When was the last time you tried? We've fixed several issues with that in the last few updates, especially in the most recent one.

The 40k score was caused by a bug and has been fixed. Larger ships still have a significant advantage over smaller ones. What do you mean only team race wins are the only thing counting towards squads?

races suck, usually get stuck with someone who does not pick up a crystal, and it doesn't score what you pick up... the higher level your are the less chance you have. i quit even trying races.