Formula 1 is one of the riskiest sports, however, the risks also come with big rewards. The drivers bet their entire lives on this unpredictable sport. This is the reason why when compared to other sports, drivers and each team make an enormous sum of money.
ALSO READ: F1: Whom Did Toto Wolff Pick To Replace Lewis Hamilton in Mercedes?
How much does each team earn in Formula 1?
The Formula 1 racing sport earns billions of dollars every year. Nearly 45% of the money earned a year goes towards the Formula One prize fund.
The team that places first in the Constructors’ Championship receives the highest share of prize money, while they give the lowest share to the team that places tenth.
Last year, Red Bull is estimated to have won $140 million for winning the Constructors’ Championship in 2023. There may be a prize money difference of a little over $10 million in the competition for second place.
Due to the long history in Formula One, Ferrari receives a bonus of 5% of the prize money each year, for the time they spend on the sport. Each team also receives extra benefits that have performed well in recent years.
Even though Formula One drivers do not earn cash prizes for wins, they usually receive bonuses from their teams in addition to their normal pay when they perform well in the season.
Prize money is only one source of income for the teams; sponsorships, merchandise sales, and commercial partnerships also provide major revenue streams.
Fiza is a writer at The Sports Orbit, focusing on F1 coverage. She is currently pursuing her master’s in broadcasting journalism and has a profound love for motorsports. She finds F1 to be the most engaging among others due to its adrenaline rush. She got interested in the sport after watching an F1 race with her brother and uncle, and she’s been hooked ever since. Her favorite team is Mercedes and she is a fan of Lewis Hamilton. Besides her dedication to F1, she enjoys activities like reading, practicing her calligraphy skills, and experimenting with cooking.
