Reuters
Formula One F1 – Steiermark Grand Prix – Red Bull Ring, Styria, Austria – June 25, 2021 Ferrari’s Carlos Sainz Jr. and Ferrari’s Charles Leclerc in action during practice REUTERS/Leonhard Foeger
Reuters
Formula One F1 – Steiermark Grand Prix – Red Bull Ring, Styria, Austria – June 25, 2021 Ferrari’s Carlos Sainz Jr. and Ferrari’s Charles Leclerc in action during practice REUTERS/Leonhard Foeger
F1’s financial structure has a lot of controversies surrounding it, one being the heritage bonus Ferrari receives. The structure takes a complicated turn when it comes to this bonus. The reason the team gets the bonus is that it’s the oldest team on the grid, having competed in every single season.
However, is that a valid reason to help the team only get richer?
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Ferrari and the Concorde agreement
One winner to walk away from the Concorde agreement of the last season, Ferrari had a lot to say. The contract gives a bonus to the team merely to reflect their historic significance to the sport.
In announcing their signature, the team boasted, “the only team to have taken part in every year” of the championship, with a fanbase of “over 400 million around the world,” and at a race on home soil at Mugello that season, “the first team to reach the milestone of having taken part in 1000 Grand Prix.”
Mattia Binotto also believed that the team’s bonus is well-deserved. Ferrari now get $35 million for being a long-standing team in the sport.
Although the agreement slashed a good amount off the bonus, Binotto said, “We got what was essential for us. To maintain the protection right, the veto right, which is a status important to Ferrari because of what Ferrari represents for the entire F1 and history.”
Reuters
Formula One F1 – Portuguese Grand Prix – Algarve International Circuit – Portimao, Portugal – May 2, 2021 Ferrari’s Charles Leclerc and Ferrari’s Carlos Sainz Jr. in action during the race REUTERS/Marcelo Del Pozo
Ferrari haven’t won the championship in years, yet it seems like longevity eclipses performance and success. The agreement also gives the Italian team the upper hand in F1 politics.
Before the 2021 regulations, Ferrari enjoyed a smooth time financially. The team got $70 million as their LST payment, half of which comes out of the total prize pool.
For a rich team like Ferrari, is the sizeable amount really necessary? Williams F1 receives a bonus, but they receive little because of their low performance. Is further change needed with the financial structure at F1?
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