F1 prize money 2023: Payout breakdown, how much drivers and constructors win
Formula 1 has long been flooded with money. And this year’s F1 World Championship is no different, with more offerings to be shared between drivers and constructors than ever before.
The prize pool, which will be distributed in 2023 based on last year’s grid placements, has a total value of more than $900 million – out of a total F1 prize pool of around $2.2 billion.
From individual championship contenders like Max Verstappen, Lewis Hamilton and Charles Leclerc, to constructors like Red Bull, Mercedes and Ferrari, there will be a decent amount of FIA money to chat about.
And here’s The Sporting News explaining the prize money and how it’s split.
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How much money do Formula 1 designers get?
Formula 1 distributes its money to the designers and not to individual drivers. This means that the drivers don’t actually receive any prize money because they receive salaries from their teams.
The team that tops the Constructors Championship earns the most prize money, while the team that finishes 10th earns the least. Simple, really, apart from the other more complicated payments that are also handed out, such as B. Bonuses.
For example, Mercedes won the Constructors Championship in 2020, earning $135 million in the process.
Of course, prize money isn’t the only way teams make money. There is also a lot of money to be made from sponsorships, merchandising and commercial deals.
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Who will win the most prize money in F1?
When looking at the money the constructors receive, things like overall standings, points classification and overall revenue share from F1 need to be considered.
But in terms of simple performance-based prize money, the eighth Concorde agreement (2021) that all teams have signed means the gap between the top and bottom lights received has narrowed.
Nowadays, the top team gets 14% of the total prize money, while the bottom team gets 6% of it. Previously, the top team received 20% and the bottom team only 4%.
This agreement is locked until January 2025.
Formula 1 is keeping actual financial figures secret, but it is also understood that there is a clause in the recent Concorde agreement stating that a team that has won a single constructors’ title will receive a base bonus, a team that however, winning two or more constructor titles will receive a greater bonus.
Drivers’ F1 prize money
While the drivers themselves are not paid directly by Formula 1, the teams do of course offer performance-related bonuses in the driver contracts.
Reports from Spanish media outlet Marca claimed that Max Verstappen’s dramatic world title in 2021 saw him earn a pay rise from around £19.6million to £31.5million.
It was also reported that Lewis Hamilton would have received a £4million bonus from Mercedes, while the rest of the constructor’s staff shared a £17.5million bonus amongst themselves – making an extra £10,000 each.