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Formula One F1 – Brazilian Grand Prix – Jose Carlos Pace Circuit, Sao Paulo, Brazil – November 14, 2021 Mercedes’ Lewis Hamilton sprays Mercedes’ Valtteri Bottas and their team with champagne as he celebrates winning the race REUTERS/Ricardo Moraes
Reuters
Formula One F1 – Brazilian Grand Prix – Jose Carlos Pace Circuit, Sao Paulo, Brazil – November 14, 2021 Mercedes’ Lewis Hamilton sprays Mercedes’ Valtteri Bottas and their team with champagne as he celebrates winning the race REUTERS/Ricardo Moraes
The 2021 F1 championship is over and it was one that will be spoken about for eons to come. In the end, Mercedes took its record-setting eighth constructors’ title; while there was a lot of emotion driving the team to achieve this feat, there was also the added bonus of extra money.
Other than bragging rights, F1 teams also get monetary benefits from winning the title. While the revenue model for F1 is highly complicated, Mercedes leaves the 2021 season with heavy pockets.
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How do winning constructors get money?
F1 revenue, which is approximately 47.5% of the total profit, is divided into two categories. 50% of the revenue goes to the teams, and the other 50% to the shareholders. The percent given to the teams is further divided.
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Formula One F1 – Abu Dhabi Grand Prix – Yas Marina Circuit, Abu Dhabi, United Arab Emirates – December 12, 2021. General view of the grid at the start of the race REUTERS/Ahmed Jadallah.
There are two columns. In the first, F1 divides 23.7% equally for the ten teams. Formula 1 bases column 2 payment on how the teams finish in the championship. Thus, Mercedes would receive more compared to Haas.
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However, Ferrari is set aside from this. The Prancing Horses get paid an additional 2.5% as per a contract with F1. Further, historically successful teams like Ferrari, Williams, McLaren, Mercedes and Red Bull get an additional bonus.
What about F1 prize money?
Teams in the top three of the constructor’s board- Mercedes, Red Bull, and Ferrari- earn additional benefits. This comes from 20% of Formula 1 makes, which is easily over $650 million. With Ferrari earning so much, what goes to the winning team?
Mercedes’ prize money is what’s left after the revenues, additional income, and special payment. As mentioned earlier, F1 divides the money based on the standings on the board.
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Formula One F1 – Abu Dhabi Grand Prix – Yas Marina Circuit, Abu Dhabi, United Arab Emirates – December 10, 2021.Mercedes mechanics during a tyre change exercise on the car of Valtteri Bottas ahead of practice REUTERS/Hamad I Mohammed.
Thus, Mercedes will relieve 14%, Red Bull 12.9%, and so on; as it decreases, Haas will only 6% of the prize money. As a result, Mercedes would have received over $73 million after winning the 2021 title.
That’s a hefty motivating factor for teams! However, surely it only comes second to the feeling of winning in Formula 1.
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