Mercedes along with others receive massive discount on 2021 F1 entry fees

Tanish Chachra | 15/12/2020
Mercedes along with others receive massive discount on 2021 F1 entry fees

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.

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.

2021 figures

Team Points Points-based fee Total entry fee
Mercedes 573 $3,825,921 $4,382,430
Red Bull 319 $1,774,597 $2,331,106
McLaren 202 $1,123,726 $1,680,235
Racing Point 195 $1,084,785 $1,641,294
Renault 181 $1,006,903 $1,563,412
Ferrari 131 $728,753 $1,285,262
AlphaTauri 107 $595,241 $1,151,750
Alfa Romeo 8 $44,504 $601,013
Haas 3 $16,689 $573,198
Williams 0 $0 $556,509

2020 figures

Team Points Point-based fee Total entry fee
Mercedes 739 $4,934,303 $5,490,812
Ferrari 504 $2,803,752 $3,360,261
Red Bull 417 $2,319,771 $2,876,280
McLaren 145 $806,635 $1,363,144
Renault 91 $506,233 $1,062,742
Toro Rosso 85 $472,855 $1,029,364
Racing Point 73 $406,099 $962,608
Alfa Romeo 57 $317,091 $873,600
Haas 28 $155,764 $712,273
Williams 1 $5,563 $562,072

Team enteries

MercedesThe 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.

Post Edited By: Tanish Chachra
Mercedes

About the author

Tanish Chachra

Tanish Chachra is the Motorsport editor at The SportsRush. He saw his first race when F1 visited India in 2011, and since then, his romance with the sport has been seasonal until he took up this role in 2020. Reigniting F1's coverage on this site, Tanish has fallen in love with the sport all over again. He loves Kimi Raikkonen and sees a future world champion in Oscar Piastri. Away from us, he loves to snuggle inside his books.

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