2026 will mark the start of the new regulations era in Formula 1. It will also mark the start of the new Concorde agreement, which will last until 2030. The new regime will bring a significant change to the historic bonus that Ferrari receives each year, as per Motorsport. The historic bonus is an extra share in the prize pool that Ferrari gets by virtue of being the legacy team that has competed in every F1 championship so far.
That bonus currently stands at 5% if the teams’ share does not exceed $1.1 billion in a year. The percentage of the historic bonus keeps increasing with the prize pool amount, maxing out at 10%.
That 10% share does not increase if the prize pool crosses $1.6 billion. Under the current regime, Ferrari may have earned $60 million to $84 million in 2023, as the teams shared $1.2 billion among themselves.
Under the terms of the current Concorde Agreement, Ferrari receives a payment that is at least 5% of the entire prize fund
This eventually maxes out at 10% for anything above and beyond around the $1.6 billion mark
Sources have revealed that the proposal in the next Concorde… pic.twitter.com/HrnrKBOgks
— Ferrari Focus (@Scuderiascoop) May 21, 2024
This privilege might soon face a limit. As per Motorsport, F1 has sent the teams the draft outline terms that they will discuss in the next meeting for the 2026 Concorde agreement. Among those terms lies the proposal to cap Ferrari’s legacy bonus to 5% no matter what the annual revenue is. While Fred Vasseur has refused to make a comment, Stefano Domenicali has also remained silent on the new terms.
The reason behind the move might stem from the resistance from other teams. While James Vowles backs the championship honoring Ferrari‘s legacy, others might not be as understanding. And given the way F1 is collecting record revenue year after year, a bigger pie might ruffle a few feathers.
F1 earns more than half a billion dollars in 2024 Q1
In 2023, F1 earned $381 million in the first quarter. That amount soared to $553 million in the first quarter of 2024. One of the biggest reasons behind the spike is an added race in the period. Last year, F1 hosted just two races in Q1. In 2024, that number went up to three, with the addition of the Australian GP between 22-24 March.
Liberty Media paid the 10 Formula 1 teams $163 million as “team payments” in Q1 of 2024.
Other Q1 results released by Liberty Media towards Formula 1:
(in million, vs. Q1 2023)
Total revenue: $553 (vs. $381, +45%)
No. of races: 3 (vs. 2)Team payments (2023): $112 (-46%)#F1 pic.twitter.com/4DTInKMzkE
— Kunal Shah (@kunalashah) May 8, 2024
F1 also highlighted the role of their primary sources, which had helped in increasing the revenue. Other reasons included race promotions, media rights, and sponsorships. Stefano Domenicali lauded the sport’s ability to continuously add more fans to the already large fanbase.
With billions at stake and plenty to share, teams would be curious to swing the share in their favor. Currently, they earn 50% of what F1 earns in a year. While that is not expected to change, the Concorde agreement will surely have some distribution changes. Hopefully, they will soon reach an agreement before the 2026 season kicks off.
