The Formula 1 prize money 2020? The 2020 FIA Formula One World Championship is one of the biggest motor racing championships in the world. The F1 stands for Formula One cars and the world championship is the 72nd event of the Formula One World Championship.
It is validated by the governing body of international motorsport, the Fédération Internationale de l’Automobile (FIA), as the highest class of competition for open-wheel racing cars. Drivers and teams are competing in twenty-one Grands Prix for the World Drivers’ and World Constructors’ championship titles. Here we take a look at the Formula 1 Prize Money 2020.
So how much prize money is there in the Constructors Championship? Well, Ferrari will be earning the largest amount of the Formula 1 revenue share. F1 follows a strange revenue share model and we take an in-depth look at how much money there is.
F1’s 2020 revenues are estimated at $1.38bn which is shared among teams and other shareholders. That is a huge amount of money! It is one of the highest-earning sports competitions in the world.
There is huge money in the Formula 1 and some estimates suggest it generates up to a billion dollars of revenue. So where does it go? The CVC (parent company of Formula 1 group) is responsible for distributing the prize money. Revenue from one race can range between $100 million to $140 million. Meanwhile, Formula 1 revenue is growing every year. In fact, in 2014 total revenue was around $1.8 billion.
Formula 1 prize money 2020: How does Formula 1 distribute their prize money?
The F1 distribute total profit to all the teams. However, drivers don’t receive any prize money because Formula 1 drivers are paid salaries by the teams they drive for. So is the money distributed evenly throughout the teams? Well no, is the simple answer.
The Formula 1 revenue is divided into two categories (50% each) and one half goes to Formula 1 teams (prize money fund) and the other half goes to formula 1 group and shareholders.
The prize money fund: F1 divide the money into several parts. (Column 1 payment = F1 divide 23.7% equally for top 10 teams while they divide Column 2 payment 23.7% for teams according to how they finish in the constructor championship). 2.5% goes to Ferrari who have a special contract with Formula one.
Things to know:
- Top ten teams receive the column one and column two payments.
- F1 share column one payments equally among top 10 teams in last three years.
- F1 share column two payments through the top 10 teams depending on how they finish in the current constructors championship.
- Teams who finish outside the top ten get a column three payment which is around $10 million just for being part of Formula 1.
- All 11 teams earn transportation costs.
Formula 1 money distribution among teams and the stake holders
So how much do F1 drivers actually earn?
Formula 1 Prize money 2020? Well that’s hard because the teams decide on how much they will pay their drivers. Usually the money they will give more to the driver who has won the most- through bonuses to their salaries etc. But the highest earning drivers such as Sebastian Vettel earns around $50 million a year!
Formula One drivers annual salaries (based on 2017) – Formula 1 Prize money 2020
|Sebastian Vettel (Ferrari)||$50 million (£33.4m) in first year, Basic $30m a year plus bonuses afterwards||3 Years (2020-20)|
|Fernando Alonso (McLaren)||Max $30 million a year including all bonuses||1 Year Deal (2020)|
|Lewis Hamilton (Mercedez)||$31 million a year (£20.9m) basic salary plus performance bonuses up to $10m a year||New 3 year deal|
|Kimi Raikonen (Ferrari)||$7 million plus performance bonuses of max $10 million||1 year extension for 2020 season|
|Valtteri Bottas (Mercedes)||$8.5 million a year (£7m) including bonuses with switch to Mercedes||1 Year Deal (2020)|
|Daniel Ricciardo (Red Bull)||$6.5 million a year (£5.2m)||2017 to 2020|
|Felipe Massa (Williams)||$3.5 million a year||1 year (2017)|
|Nico Hulkenberg (Renault F1)||$3 million a year||1 year deal|
|Max Verstappen (Red Bull)||$3 milion a year||Multi-year contract with Red Bull|
|Sergio Perez (Force India)||$2.5 million a year (£2m)||Final year|
Below we have the 2016 Formula 1 Prize money table. Mercedez won the constructors championship title that time and earned around $148.5 million. Meanwhile Ferrari earns a massive $208 million despite finishing second due largely in part to historic payments.
2016 F1 Prize Money distribution
|1||MERCEDES||$42m||$76.5m||$30m (Historical payment)||$148.5m|
|2||FERRARI||$42m||$56m||$90m (Ferrari payment) + $20m (bonus fund)||$208m|
|3||WILLIAMS||$42m||$45.5m||$30m (Historical payment)||$117.5m|
|4||RED BULL||$42m||$38.5m||$60m (Bonus Fund)||$140.5m|
|9||MCLAREN||$42m||$17.5m||$34m (Bonus Fund)||$93.5m|
F1 Drivers records- All-time greatest F1 drivers
F1 Drivers records- All-time winners
|1||Michael Schumacher||1991-2006, 2010-2012||308||91||29.55%|
|3||Alain Prost||1980-1991, 1993||202||51||25.25%|
|6||Fernando Alonso||2001, 2003-2020||301||32||10.63%|
|7||Nigel Mansell||1980-1992, 1994-1995||191||31||16.23%|
|Niki Lauda||1971-1979, 1982-1985||177||14.12%|
Formula 1 Prize Money Changes and Resources
Formula One’s yearly prize cash payout is open learning and came to $913 million a year ago. Despite the fact that F1 doesn’t reveal what amount is gotten by each group, the equation for ascertaining it has been accounted for. In any case, it has never become exposed how much every driver was liable for acquiring. As of not long ago.
The center prize cash is identical to 47.5% of F1’s hidden benefit. It is then separated into two with one half split between the best ten groups in the title on a sliding scale dependent on race results. The other half is part uniformly yet is as yet determined by race execution as it just goes to groups which have completed in the best ten of every two out of the previous three years.