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Home » Formula 1 team payments for 2017 revealed

Formula 1 team payments for 2017 revealed. Ferrari will receive the largest share of revenues allocated for Formula 1 teams.

Scuderia Ferrari will receive the largest share of revenues allocated for Formula One teams, despite the fact that the Maranello side finished only third in the 2016 F1 constructors’ championship.

Ferrari, Mercedes, Red Bull and McLaren have all agreed separate deals for constructors’ championship bonus payments. The Italian team receives a long-standing team payment while Williams collects a heritage payment. For 2017 Ferrari will receive $180m, representing almost one fifth of the total ‘pot’ but $12m less than last year. That’s $108m more than Force India receives, despite the latter finishing just one place behind in the constructors’ championship last season. Mercedes won both the drivers’ and constructors’ championships for the third successive year, but still receives $9m less than Ferrari.

The amount each F1 team receives is based on a series of factors, including performance over the course of the season, past success and special agreements.

At the start of each championship, Formula One Management makes a projection regarding revenues from three streams – hosting fees, media rights and other income avenues, such as hospitality and trackside sponsorship. FOM’s 2017 turnover is estimated at about $1.83bn, with underlying revenues estimated at $1.38bn. It then distributes approximately 68% of projected underlying revenues among the qualifying teams.

That figure of $940m is 3.5% down on last year’s figure due to anticipated increases in marketing costs in line with FOM owner Liberty’s plans, and a reduction in the number of grands prix from 21 to 20.

Revenues are distributed across the 10 teams through nine monthly payments from April, with a final “check” payment – when definitive revenues have been calculated – in March 2018.

May 8, 2017Scuderia Fans

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