Here is how much the drivers and the teams earn in Formula 1, also know it’s prize money for the winner in the F1 2023 season
To compete in and stay in the billion-dollar Formula 1 Racing organisation, you need money. Drivers pay a nearly $11,000 initial registration fee as well as an additional $2,230 for each point earned over the previous season, making their fees incredibly high.
F1 2023 prize money for drivers and Constructors team title winner and how much revenue is made
According to a financial report from Formula 1’s owner, Liberty Media (FWONK), the sport earned $2.57 billion in total in 2022 thanks to record attendance and increased global viewing. The Sports Business Journal estimates that F1 paid $75 to $90 million per year for U.S. media rights when it extended its contract with ESPN until 2025 in June 2022.
How much F1 teams make money?
Teams are essentially funded according to how well they score each season. To level the playing field and control team expenditure, F1 instituted budget limitations in 2021. This was done because teams with larger budgets have a tendency to perform better and eliminate competitors with smaller budgets.
The rule’s initial 2021 announcement said that the spending maximum would be $145 million, and it would drop to $135 million in 2023. F1 teams also receive funding from automakers in the form of investments and sponsorships.
In the current situation, the top-placed team gets 14% of the total prize money, while the bottom-placed team gets 6%. In the past, the team received a 20% share, while the lower category only received 4%.
How are the F1 drivers paid?
Two drivers are employed by each F1 team and are paid by them. The team budget cap does not include driver compensation. Drivers receive a base wage, bonuses for their track performance, and income from sponsorships and endorsements. F1 drivers’ earnings for 2023 range from $1 million to a whopping $55 million.
Here is the list of five highest paid players:
- Max Verstappen ($55 Million)
- Lewis Hamilton ($34 Million)
- Charles Leclerc ($24 Million)
- Lando Norris ($20 Million)
- Carlos Sainz ($12 Million)
What is the prize money for Formula 1
The Formula 1 organization’s parent company, CVC, is in charge of giving out awards. Between $100 million and $140 million can be earned from a single race, and this sum is rising yearly. The constructors’ standings determine how much of Formula One’s overall money is dispersed to the various teams. The prize money for the winners is roughly $66 million, while $15 million is given to the losers, as per Sportsbrief.
Each year, the F1 World Championship teams compete for a share of a prize pool of over $900 million, which is distributed by the FIA. The money is raised in a variety of ways, including through the organisations’ payments for broadcast and race-related expenses.
F1 anticipates earning $1.38 billion in revenue in 2023, which will be divided among the groups and other shareholders. Data from Statista and The Sporting News show that Formula One will surpass all other sports in total value in 2023, with a startling $2.2 billion.