Formula 1 team payments for 2016 revealed

Ferrari will receive more money than any other team in Formula 1 for its 2015 performance despite finishing second in the championship, Autosport can reveal.

Formula 1 team payments for 2016 revealed

Formula One Management collates revenues from hosting fees, media rights and other streams such as trackside sponsorship and hospitality.

The 2015 total was $965m and this will be distributed across 10 teams through nine monthly payments from April with a final "check" payment - when definitive revenues have been calculated - early in 2017.

The table below details the split, divulged to Autosport in Bahrain, and shows how F1 disproportionately awards its revenues.

Column 1 payments are based on a team's classification over two of the past three years, while Column 2 payments are based solely on a team's 2015 classification.

The Column 1 pot is divided equally amongst all qualifying teams with each estimated to earn $33.5m.

Column 2 is calculated on a sliding scale from first to 10th place with first receiving 19 per cent of the fund, sixth 10 per cent and 10th four per cent.

There are constructors' championship bonus (CCB) payments for four teams - Ferrari, Mercedes, Red Bull and McLaren, which have been agreed in separate deals.

There is also a long-standing team payment for Ferrari and other fixed prize fund payouts such as a heritage bonus for Williams and negotiated payments for Red Bull Racing and Mercedes.

Red Bull receives its extra annual payment for being the first team to sign the current bi-lateral agreement, which runs to 2020, while Mercedes will earn its bonus annually from now on after meeting its agreed target of two world championships.

View a larger version of this graphic here

This year, Ferrari will earn an estimated $192m which is almost 20 per cent of the total. It's also $33m more than the team earned last year.

Ferrari's earnings consist of $87m in performance payments and $105m in historic/CCB bonuses.

Reigning champion Mercedes won 16 grands prix, including 13 one-twos, compared to Ferrari's three wins but earned just 17.7 per cent of the total fund with $171m, of which $74m consists of bonuses.

Further down the order the disparities are more glaring, with Red Bull receiving $144mm to the $87m earned by third-placed Williams, which finished ahead of it in the 2015 constructors' standings.

Sir Frank Williams's team will receive less than half that of Ferrari's total despite finishing just one place adrift in the championship.

McLaren, which finished ninth, receives a projected $82m, while fifth-placed Force India earned $67m - a situation that lays at the heart of the team's complaint to the EU Commission over what it insists is unfair competition.

Speaking to Autosport in Bahrain, FOM CEO Bernie Ecclestone admitted there had been "conversations" with the Commission over complaints filed by Force India and Sauber, which placed eighth ahead of McLaren, yet receives just $54m.

The imbalance is best illustrated by the fact that equally sharing the 'pot' among 10 teams would lead to Williams earning $96.5m rather than $87m for third place.

At $965m, the teams' payouts are nine per cent up on last year's total payout of $883m despite there being the same number of rounds (19).

However, a $35m bonus negotiated by Mercedes for a second constructors' championship is paid from a separate reserve, making the purified revenue increase $47m, or roughly five per cent.

FOM's 2015 turnover is estimated at $1.9bn, with underlying revenues estimated $1.4bn.

These are shared between FOM and the teams on an approximate 35/65 split based on terms of individual bilateral contracts that run through to 2020.

shares
comments
Mercedes working with Daimler to fix F1 start problems

Previous article

Mercedes working with Daimler to fix F1 start problems

Next article

F1 actually does need a dictator

F1 actually does need a dictator
Load comments
The tough balancing act facing Schumacher’s Netflix film producers Plus

The tough balancing act facing Schumacher’s Netflix film producers

Michael Schumacher is the latest sporting superstar to get the ‘Netflix treatment’, with a special documentary film airing on the US streaming giant’s platform this month. DAMIEN SMITH has the inside track on how the filmmakers gained access to tell the human story behind one of Formula 1’s most publicity-shy champions - while the man himself, for obvious reasons, is in absentia… 

The times that suggest Verstappen should be confident of F1 Russian GP recovery Plus

The times that suggest Verstappen should be confident of F1 Russian GP recovery

For the second race in a row, Mercedes has ended the first day of track action on top. It’s in a commanding position at the Russian Grand Prix once again – this time largely thanks to Max Verstappen’s upcoming engine-change grid penalty. But there’s plenty to suggest all hope is not lost for the championship leader at Sochi

Formula 1
Sep 24, 2021
The ‘backwards step’ that is the right move for Formula 1 Plus

The ‘backwards step’ that is the right move for Formula 1

OPINION: With its days apparently numbered, the MGU-H looks set to be dropped from Formula 1’s future engine rules in order to entice new manufacturers in. While it may appear a change of direction, the benefits for teams and fans could make the decision a worthwhile call

Formula 1
Sep 23, 2021
The floundering fortunes of F1’s many Lotus reboots Plus

The floundering fortunes of F1’s many Lotus reboots

Team Lotus ceased to exist in 1994 - and yet various parties have been trying to resurrect the hallowed name, in increasingly unrecognisable forms, ever since. DAMIEN SMITH brings GP Racing’s history of the legendary team to an end with a look at those who sought to keep the flame alive in Formula 1

Formula 1
Sep 22, 2021
Why the 2021 title fight is far from F1's worst, despite its toxic background Plus

Why the 2021 title fight is far from F1's worst, despite its toxic background

OPINION: Formula 1 reconvenes for the Russian Grand Prix two weeks after the latest blow in ‘Max Verstappen vs Lewis Hamilton’. While the Silverstone and Monza incidents were controversial, they thankfully lacked one element that so far separates the 2021 title fight from the worst examples of ugly championship battles

Formula 1
Sep 22, 2021
How F1’s other champion to emerge from 1991 thrived at Lotus Plus

How F1’s other champion to emerge from 1991 thrived at Lotus

Mika Hakkinen became Michael Schumacher’s biggest rival in Formula 1 in the late-90s and early 2000s, having also made his F1 debut in 1991. But as MARK GALLAGHER recalls, while Schumacher wowed the world with a car that was eminently capable, Hakkinen was fighting to make his mark with a famous team in terminal decline

Formula 1
Sep 21, 2021
The forgotten F1 comeback that began Jordan’s odyssey  Plus

The forgotten F1 comeback that began Jordan’s odyssey 

Before Michael Schumacher – or anyone else – had driven the 191 (or 911 as it was initially called), Eddie Jordan turned to a fellow Irishman to test his new Formula 1 car. JOHN WATSON, a grand prix winner for Penske and McLaren, recalls his role in the birth of a legend…

Formula 1
Sep 20, 2021
The squandered potential of a 70s F1 underdog Plus

The squandered potential of a 70s F1 underdog

A podium finisher in its first outing but then never again, the BRM P201 was a classic case of an opportunity squandered by disorganisation and complacency, says STUART CODLING

Formula 1
Sep 18, 2021