Mercedes receives a hefty discount on 2021 F1 entry fees with a lesser scope of earning points in 2020, which influences the total entry cost.
The start of 2021 season is going to bring significant financial relief to all 10 teams in the paddock, as the modus operandi of F1 amidst the pandemic made possible for all the teams to pay lesser amounts in 2021 as compared to 2020, to participate in Formula 1’s new season.
— Thiago Pimenta (@chilipepper3t) December 14, 2020
It was not possible because of a decree, but the nature of determining the registration of each team, as F1 entry fees for each team depends upon the number of points earned by the respective team in the previous season.
Therefore, an initial 22-race calendar was cropped to a 17 race long schedule, hence reduced the opportunity to score points for every team. In 2013, while restructuring F1’s finances, to boost FIA’s finances, it was agreed that teams would pay an entry fee based on the number of points scored in the previous season’s championship.
Though there is a base price for the entry fee, and the last season’s points add up to it, Mercedes incredible haul of 739 points in 2019 made them pay a whooping sum of $5,490,812 to participate in the recently ended season of Formula 1.
For every other competitor, the cost is $5,563 for each point, therefore, Mercedes will save more than a million-dollar and will have to pay $4,382,430.
Bigger gains for Ferrari
In this area, Ferrari has made bigger gains, as the disappointing season for them, in the end, will make them invest less in the entry fee, as the Maralleno team last year paid $3,360,261 and this time will be required to pay only a $1,285,262 after they recorded only 131 points on the table.
|Team||Points||Points-based fee||Total entry fee|
|Team||Points||Point-based fee||Total entry fee|
The biggest loser from the entry fee drop is the FIA, with its earnings cut drastically by the 17-race calendar. Losing five races means the governing body’s income from F1 entry fees has dropped by at least $2,837,130.