It was revealed by Autosport last week that Ferrari will once again receive more prize money than any other Formula One team.
A report on Autosport’s website last week revealed that the predicted split of Formula One Management’s revenues between the ten teams competing in F1 last year, once again exposing the sport’s uneven playing field.
Despite finishing second, Ferrari came out on top in the earning stakes and is set to receive a total of $190 million once its championship prize money, constructors’ championship bonus and long standing team bonus are factored in. As a result, the Italian team will receive more money than champions Mercedes, which is set to earn $171 million. After achieving its target of winning two world championships, a bonus payment of $35 million has been unlocked by Mercedes, which was negotiated into its 2013 commercial agreement.
Asked to justify Ferrari’s payment, Bernie Ecclestone recently said: “We pay more money to Ferrari because they’ve been around a long time. Ferrari is Formula One and they deserve whatever we pay them.”
Williams, which finished third in last year’s championship, receives just $87 million, which is $57 million less than Red Bull, who finished one place behind it in the title race. The skewed distribution of revenues is also underlined by McLaren, which is set to receive $82 million despite finishing ninth in the constructors’ standings.
As a result, McLaren receives more money than four of the teams it finished behind in last year’s championship, with Force India earning $67 million, Renault (the old Lotus team) earning $64 million, Toro Rosso earning $57 million and Sauber earning $53 million. Manor, which finished last in 2015, earns $47 million.
The report shows that teams earn a basic payment of $33.5 million, with extra money earned for championship position. However, bi-lateral agreements negotiated by Ferrari, Mercedes, Red Bull, McLaren and Williams then skews the payments by varying degrees in favour of these five teams.
The total prize money across all ten teams is $965 million, which Ecclestone believes is too much and said the following about it:-
‘We’re going to pay the teams collectively at the end of this year, very close to a billion dollars and if I was a promoter for pop concerts and things, I think I would want a much better performance from the performers than we are getting from the people that we are paying the billion dollars to.
‘You imagine if we were hiring the Rolling Stones and suddenly you found that Mick [Jagger] couldn’t sing and the guy couldn’t play the banjo or something, with the sort of money they want.’
More details on the payments can be found here.