Formula 1 is as much a cutthroat business as it is about motor racing. This is because the 10 teams that compete annually for all the racing glory also get paid according to how they finish in the Constructors’ Championship at the end of every season.
The economics of F1 depend on the total prize pool based on a calculation of the total revenue generated by the sport net of all the other expenses. In 2023, the total prize pool for the 10 teams is expected to be around $2.5 Billion dollars.
However, the quantum each team gets is calculated via two disbursement columns. Column 1 is roughly 23.7% of the prize pool divided equally between the 10 teams. Column 2 is the staggered prize money allocation based on the Constructors’ Championship position. Here is the F1 Constructors Championship Prize Money 2023 table:
| Teams | Column 1 | Column 2 |
| Red Bull | $99.9 Million | $140 Million |
| Mercedes | $99.9 Million | $131 Million |
| Ferrari | $99.9 Million | $122 Million |
| McLaren | $99.9 Million | $113 Million |
| Aston Martin | $99.9 Million | $104 Million |
| Alpine | $99.9 Million | $95 Million |
| Williams | $99.9 Million | $87 Million |
| AlphaTauri | $99.9 Million | $78 Million |
| Alfa Romeo | $99.9 Million | $69 Million |
| Haas | $99.9 Million | $60 Million |
Naturally, during the Abu Dhabi GP, the drivers were fighting for every inch on the tarmac as a last-ditch elevation in the championship standings could mean millions of dollars in payout as the chequered flag came down at the end of the 58 racing laps.
Red Bull top the Column 2 F1 Constructors Prize Money 2023 table
Despite Charles Leclerc‘s best efforts, Mercedes clinched P2 in the Constructors’ championship as the season came to an end in Abu Dhabi. This meant that the Silver Arrows bagged a whopping $9,000,000 more than their rivals from Maranello.
Mercedes finished above Ferrari in the Constructors’ Championship by just three points pic.twitter.com/9Q6rl8AEOF
— ESPN F1 (@ESPNF1) November 26, 2023
In 2023, the total payout to the teams based on their Constructors’ championship standings was a whopping $999 million. The highest earners of the season were Red Bull with them securing P1 in the standings. 10th placed Haas on the other hand received a $60,000,000 payout, which was $80 million less compared to the Milton Keynes outfit.
With the 50-50 model, each team was anyway guaranteed about $100 million in terms of the payment agreement for their share in the revenue of the sport. Despite this ‘equality‘ one team earned a bigger slice of the pie than anyone else.
Ferrari retain the edge over their rivals with ‘Historical Bonus’ clause in their agreement
Ferrari are guaranteed a bigger slice of the Formula 1 pie due to the agreement they’ve signed with the Formula 1 group. Because the team have been a part of the championship from its very inception, the Italian outfit earn a historical bonus embedded into the Concorde Agreement.
According to reports, the additional payout that Ferrari receives is anywhere near 2.5% to 5% of the total payout. That being said, this extra income that the Prancing Horse receive because of their loyalty and heritage in the sport shouldn’t dismay the other 9 teams.
Nothing at stake? Why #F1 teams are battling for more than prize money in Abu Dhabi
There’s plenty to learn from the heat of battle as the final constructors’ places are decided, says @ChrisMedlandF1 ➡️ https://t.co/h0wG2zNCnh https://t.co/h0wG2zNCnh
— Motor Sport magazine (@Motor_Sport) November 22, 2023
It’s a well known fact that sponsorship is king in the modern age of this sport. And the teams earn a hefty chunk of their income from their sponsor deals.
