Have a look at how much do each driver and teams make during the course of the Formula 1 season and what is the prize money for winning the F1 race in 2021
Formula 1 is one of the wealthiest sport on this planet with huge chunks of money involved in the top motorsport event. F1 generates Billions in terms of revenue every year and the money is divided equally among its shareholders and the teams participating.
It is estimated that Formula 1 will generate a whopping $1.38billion in 2021 as compared to last year where the revenue generated was $2billion at the time of the pandemic when the audiences were not allowed to enter the races.
F1 2021 Prize Money Distribution
The dangers involved in the sport cannot be compensated with any amount of money despite what the big numbers are shown in the sport. The drivers do not race for money or fame but it is the adrenaline rush that allows them to push their car to another extent.
Now, the big question is how much every team and driver makes their money in one of the most expensive motorsports in history? Well, the finances of Formula 1 are a bit complicated and the division of money is also rusty in some aspects.
Formula 1’s finances are taken care of by the CVC which is the parent company of F1 responsible for the money distribution. It is understood that each racing event of Formula 1 can possibly generate revenue from around $100million to $140million.
Revenue Generation Model and Prize Distribution of Formula 1
The drivers who play a crucial part in the sport are not paid anything by the CVC in terms of money when they win the race. Meanwhile, the Constructor’s are paid by the CVC for their participation at the weekend because they bear the cost of everything.
Revenue Model
- The total money earned by the CVC is then shared equally between Constructor’s for their participation and subsequent shareholders.
- The prize money is then divided into different slabs of payment.
- The 23.7 % of the Prize money fund is divided equally among the top 10 teams.
- The 23.7% of the prize money fund is shared amongst the Constructor’s on the basis of their standing in the points table at the end of the season.
- The team that finishes outside the top 10 gets $10 million for participation.
- All the teams get the transportation cost from Formula 1.
- Ferrari gets the extra 2.5% because of their special contact with formula 1.
- Meanwhile, drivers earn their money in a contract form with their respective Constructor’s team. It can be in terms of bonuses for race wins and podium finishes.