In 2021, F1 is predicted to bring in $1.38 billion in revenue, placing it second only to UEFA Champions League and ahead of the FIFA World Cup, MLB.
Formula One is a hugely profitable sport, with some estimates suggesting that it generates up to a billion dollars in income. The newly Liberty Media-owned sports venture has seen 20% growth in key fan bases in countries like Brazil, China, France, Germany, Italy, Russia, South Korea, Spain, the United Kingdom, and the United States. It has also the greatest increase in engagement (99%) compared to 48% of Bundesliga across Twitter, Facebook, Instagram, and Youtube. A single race’s revenue might range from $100 million to $140 million. Formula One’s revenue, on the other hand, continues to rise year after year and will continue to do so for generations to come.
Money Earned through Revenue:
The Formula 1 revenue, which is about 47.5% of the total profit, is divided into two categories equally 50%:
- 50% goes to the 10 Teams.
- The other 50% to the F1 Shareholders
The 50% received by the teams is then divided into two separate columns:
- Column 1 payment = F1 divide 23.7% equally for top 10 teams
- Column 2 payment 23.7% for teams according to how they finish in the constructor championship. (Mercedes will get paid more in comparison to the last standing Haas)
An exception to this rule is Ferrari. They get paid an additional 2.5% as they have signed a special contract with Formula One.
Also Read: Red Bull advisor Helmut Marko drops a bombshell comment about his team’s future in Formula 1
Historically successful teams(Ferrari, Williams, McLaren, Renault) and the teams which have been in the Top 3 of the constructor’s championship (Mercedes, Red Bull, Ferrari) earn an additional income. This income is generated out of a threshold (20% of what f1 makes over $650 Million).
Assuming, F1’s generated income is $850 millions, as per the threshold : $850 – $650 Millions = $200 Million.
The top three teams in the Constructors Championship and the historically successful teams will split 20% of the $200 million among each other.
What about the Prize Money?
If you are confused, remember Ferrari is getting paid the most until now.
The Prize Money is made up of the money left over after the revenue, additional income and special payment to Ferrari. Since the start of the 2021 season is split much more equally than before.
Also Read: Honda departs from Formula 1 on a high note as the Team’s Champion Manufacturer
The share of prize money depends upon the team’s finishing positions in the Constructors Championship and is distributed on a scale of – 0.9%.
Mercedes, who finished first, will get 14% of the prize money, Red Bull will get 12.9%—lowering down to Haas, who will get 6% of the prize money.
Red Bull themselves have received around $66 Million in prize money from Formula. By doing quick maths, Mercedes should be earning above $73 Million (66Million multiplied by 14% + 66 Million).
How much will the Drivers earn?
Three primary ways of drivers earn money:
- Salary
- Bonuses (Performance-Based Bonus)
- Sponsorship Deals
Lewis Hamilton earns a salary of $30 Million per year. As per the reports from The Sun, it is believed that Hamilton would have got an additional $5.30 Million if he would’ve clinched the Driver’s Championship last night. The Briton also earns an estimated $13 Million with his sponsorship deals with Monster, Puma, Tommy Hilfiger, Sony, Bose, Bell, and Gran Turismo.
Max Verstappen, whose salary is $25 Million, accumulated a bonus of $15 million throughout the season totalling his income for the year to $40 Million.
Departing former World Champion Kimi Raikkonen earned a humble $10 Million throughout the season while former teammate Sebastian Vettel earned $15 Million this year.
Revenue will continue increasing for years to come with the evergrowing increase of viewership with the help of Netflix’s Drive to Survive, Merchandise sales, Social media presence.
