Mercedes Stands to Lose $10 Million if Ferrari Snatches P2 in the Constructors’ Championship

In the current battle for P2 Mercedes maintains a narrow four-point advantage over advancing Ferrari.  Nevertheless, at Abu Dhabi GP, if Mercedes fails to secure their position, they are poised to incur a $10 million loss.

Currently, the Silver Arrows are in a position to secure the second spot in the Constructors’ Championship, earning $131 million. This expectation stems from the projected 10% rise in F1 earnings for the current season, estimated between 1.25 to 1.3 billion.

However, Mercedes’ grasp on P2, once seemingly assured, is slipping due to their recent lackluster performance. Starting from Austin, their underwhelming showing has allowed Ferrari to narrow the points gap, putting them at risk of losing the $10 million difference.

 

🚨| Ferrari and Mercedes are in a $10 million battle this weekend, in terms of difference in prize money between 2nd and 3rd in the Constructors’ Championship.

— Ferrari News 🐎 (@FanaticsFerrari) November 24, 2023

This risk is noteworthy because the team finishing third receives $10 million less than the second-placed team. As per the Concorde agreement, the prize pool constitutes 50% of F1’s commercial rights profit. However, teams do not always earn this portion since FOM’s share rises above a certain revenue threshold. For instance, the total prize money for 2022 was only 1.157 billion, even though F1 earned 2.57 billion (45%) in revenue.

Considering these benefits, both teams’ determination to finish in the P2 position will surely heighten the excitement during the race. However, unfortunately, the team that fails to get P2 will have major consequences for their research and development endeavors. This is because, with the budget restrictions established by Formula One Racing, financial considerations are vital during a team’s development phase.

Nevertheless, amid the battle for P2, the losing team may find a silver lining in the form of an advantage that is more wind tunnel time. According to the rules, the higher a team finishes, the less wind tunnel time they receive, as exemplified in Red Bull’s case last year.

Does the P2 battle have significant consequences on Ferrari and Mercedes’ future?

Formula 1 is a highly complex sport where every detail holds the team’s fate. This is evident in teams’ ongoing endeavors to deliver capable cars to their drivers. Surprisingly, among many of the factors influencing a team’s performance, the wind tunnel is a crucial aspect that is necessary throughout the team’s entire season.

Thanks to this F1 testing facility, teams may improve their aerodynamic designs within regulated conditions. Nevertheless, the constraints on wind tunnel time present an intriguing challenge for teams finishing higher in the standings. This implies that the lower a team finishes, the more beneficial it would be for them in terms of wind tunnel allocation.

In this context, if Ferrari secures P3, it would enable Frederic Vasseur and the team to conduct a more detailed analysis of the SF23 during the off-season. This, in turn, could contribute to improved performance, potentially aiding them in the battle against Max Verstappen in the upcoming season.

However, this does not mean that Ferrari did not have a good year altogether. After the summer break, the Prancing Horse excelled with consecutive strong performances and a notable victory at the Singapore GP, thanks to Carlos Sainz’s efforts. Moreover, the achievements extend to a commendable showing at the inaugural Las Vegas GP, where Charles Leclerc’s bold move on Perez secured a P2 finish for the team. In summary, the battle for P2 in the season finale holds intrigue, given the distinct forms of both Ferarri and Mercedes.