F1 prize money
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I was just going through a piece about mid-field tussle over 6-7th place among FI/Sauber/STR and the difference it does make to the balance sheet of the team. I quickly googled about prize-share distribution according to the ranks but couldn’t get
anything concrete. Does anybody have any statistics regarding this point? How much teams got in 2010? And what will be the changes in figures for 2011?
And is there any “official” share for a particular driver? And does the team standing last gets anything?
Lot many question marks :DInteresting questions. I can answer that only the top 10 teams get money, and the difference between 6th and 7th is massive, millions. Don’t know the numbers I’m afraid.
The official numbers are mostly commercial secrets buried in Concorde. Some numbers and the broas structure are known, however: the total “pot” is 50% of the total TV and media revenue. Ferrari gets the first $80 m of this as recognition of its prestige… …or something. Then the sophomore teams (Caterham, Virgin and Hispania) get €10 m each (yes, the currency does change because the Ferrari deal is a hangover from before the FIA converted to Euros). Unless, that is, Caterham finishes 10th this year or 2012, or either of the other two manages it this year and 2012, in which case that team will instead be treated like an established team- which means a lot more income. The next Concorde Agreement may revert to the old arrangement whereby teams outside the top 10 get nothing, but at the moment every team is guaranteed free no-frills transport for a limited amount of stuff via Bernie Air, plus an amount to be determined by revenues.
There’s a sliding scale employed otherwise, paying out the top 10 teams proportionally based on championship position. If the structure is like the 1998-2009 Concorde Agreement, starting and racing positions at key points in the race also affect financial distributions at the end of each year.
Drivers negotiate how much “bonus” money they get for achieving certain things (usually championships, wins and points) with their teams. If they forget to agree anything before signing, the team is not obliged to share anything and the FIA certainly doesn’t give the drivers a direct share.
Ferrari gets the first $80 m of this as recognition of its prestige… …or something.
Not quite. Each team is elegible for a set percentage of money depending on their WCC position. That amount will remain the same whether Red Bull wins the title or Virgin does. There is then a “historical multiplier” that is put into effect. Different teams are elegible for a bigger pay-out depending on how long they have been a part of the championship. The World Constructors’ Champion gets paid first, then second place and so on, all the way down to tenth. This year, Ferrari will be paid third.
@prisoner-monkeys How does the historic multiplier system actually work, do you know? Does it apply to everyone? For example would RBR be multiplied through its 6 year history since 2005? Ferrari undoubtedly would be quite high in terms of multiplying. Also how about name changes? Like the Lotus/Renault name changing, Virgin/Marussia etc
There are no details on how it works, other than that a) it exists, and b) the longer a team has been in the sport, the more they are entitled to. The teams are understandably reluctant to discuss the details.
Isn’t there some about name changes that can decrease the amount of prize money which a team gets at the end of a season?
Wasn’t this the reason why Sauber still had the BMW tag attached to them in 2009 even though there was no affiliation with BMW. They probably wanted to keep as much of the third place prize money from 2008 as they could.Normally, a team could change their name without affecting their overall position. However, after the political crisis of 2009, the sport reverted to an old Concorde Agreement – 1997, I think – which made it harder for teams to change their names. No doubt this will be something the teams address when the 2013 Concorde is negotiated.
Finally i got some insight:
http://joesaward.wordpress.com/2012/01/19/finding-a-budget-in-formula-1/#comments
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