F1 2014 payday: Ferrari, Red Bull earn more than championship leader




In a recent revelation by Autosport, Ferrari has received close to $38 million more in Formula One payments than the title winners, Mercedes, despite finishing fourth in the constructor’s standing for the 2014 season. In fact, Red Bull Racing team who finished second too has received about $30 million more than the ‘silver arrows’ team.

: Ferrari, Red Bull earn more than championship leader

: Ferrari, Red Bull earn more than championship leader

Usually the Formula One management accumulates the profits from three sources: hosting fees from the venues, media rights from the TV channel and online media distributors and from sponsorships of their own. Then from the profits about 65 per cent of the revenues are distributed amongst the top ten teams.

Now, out of this 65 per cent given to the teams, 50 per cent is according to their final constructor’s standing after the season end while 15 per cent is split between Ferrari, Red Bull, Mercedes, McLaren and Williams. This premium payment is actually a bilateral agreement signed by the teams back in 2012. Apart from these teams no other team receives any sort of premium apart from their prize money.

Now keeping this in mind, Ferrari who finished fourth received $67 million as compared to $92 million as prize money for finishing on top. But Ferrari received, according to the agreement, a further $97 million in terms of premium which takes its total more than any other team.

Formula One in 2014 alone is estimated to have had a turnover of around $1650 billion while their total revenue from all the sources is estimated at around $132 billion. Approximately 66 per cent or $ 885 million is said to have been distributed amongst the teams.

Red Bull was paid the second highest who finished in second spot, receiving a total payment of $ 156 million. Mercedes who finished on top spot in comparison received the third highest amount of $126 million.

McLaren who finished fifth on the constructor’s championship with just two podium places in the whole season received $98 million in total for 2014 season. In contrast, Williams team, who managed to take nine podium places and finished third on the constructor’s championship standings received only $ 83 million in total. Force India who finished sixth behind McLaren is known to receive about $60 million in total from Formula One management for their 2014 season.

The premium paid to each team is based on their past performance, heritage and the fan base following of each team. These negotiations took place amongst the teams before finally being agreed upon by Bernie Ecclestone, the F1 supremo.

Following is the table with the complete picture:

2014 Formula One payments*
Team Position Prize Money Premium Total Payment
Ferrari 4 67 97 164
Red Bull Racing 2 82 74 156
Mercedes 1 92 34 126
McLaren 5 63 34 98
Williams 3 73 10 83
Force India 6 60 0 60
STR 7 54 0 54
Lotus 8 51 0 51
Marussia 9 48 0 48
Sauber 10 44 0 44
Total   634 250 884

(*All figures are in $ million)

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Anjan K Merkap

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