Ferrari set for $192M payday

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According to AUTOSPORT, Ferrari is set to have a big payday according to documents the site says was revealed to them. Even though finishing second int eh championship, the team stands to take home $192m in prize money.

Now, Formula 1’s payout structure is a little different and is derived over a multi-year performance metric so you’ll need to check out their chart they’ve very kindly put together to see the totals.

AUTOSPORT Chart for F1 payout

AUTOSPORT does a nice job of unpacking how this payout works and what the payments are for so I would recommend viewing the article and getting their insight to the reasons.

Suffice it to say, many will look at the lopsided nature of the chart and discern that the payout structure isn’t equitable but the agreements with each individual team are based on the teams impact on the sport and investment in the sport. It rewards success in the championship and you can see where some folks are torqued over Ferrari’s historic payment allowance.

You can get your calculator out and take the total and divide it equally amongst all the teams and then start your tweets of outrage but the reality is, F1’s successful teams spend more and get more.

The counter argument will be that if you gave Manor $192m, they’d do more and be more successful. I’m not so sure about that and that’s no offense to Manor. There is a significant investment in infrastructure, team personnel who are geniuses and the like and this takes initial investment.

One could look at Haas F1 and see how they may be able to leap past the also-ran teams and maybe start getting a bigger chunk of the pie although they won’t receive any cash for their efforts this season. This may be the best intro to F1 in decades to be honest.

I did find F1 boss Bernie Ecclestone’s comments about the payout humorous as Reuters reported:

“If I was a promoter of pop concerts, I think I’d want a much better performance from the performers than we are getting from the people we are paying the billion dollars to,”

Such is life, F1 pay disparity continues and I wonder who the source was? The teams who are lodging a complaint to the EU over anti-competition laws infringement? Could it be Mr. E or his minions who I argued might be interested in the EU investigation in order to tear up the bilateral contracts FOM have with the teams? Only AUTOSPORT knows.

Hat Tip: AUTOSPORT and Reuters

 

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MIE

The way the current structure works, Ferrari would get more cash than Williams even if their cars failed before the race start in every event of the season, and Williams won both the Drivers and Constructors Championships. To me that seems fundamentally flawed. Yes Ferrari have been around for a long time, but no other team is going to get the opportunity to catch them up. Every team (bar Manor and Haas) has been in the sport for two decades at least (Red Bull can trace their origin back to Stewart Grand Prix, who first entered F1 in 1997), so… Read more »

Negative Camber

I’d say Luca Di struck a heck of a good deal and Sergio should be grateful for it. :)

Tom Firth

Then they’d go make a cardboard LMP1 car until got the $70m back!

eram

$192m for Ferrari and nothing this year for Hass. This is how you get new teams into F1.

Tom Firth

Haas hasn’t spent north of $1.2bn of its own company money since it entered F1, before even look at how much Ferrari’s sponsors have put in.

MIE

These payments are for the team’s performance up until the end of the 2015 season. Why should Haas get any money for a season when they weren’t even racing in F1?

eram

they dont get any money next year for this years points either. this isnt how you attract new teams to f1.

MIE

When the last group of teams arrived in 2010 they got a non standard agreement that enabled some cash ($10 million) following the first year. Normally, teams have to finish in the top ten for two years out of the last three to qualify for any payment. Haas are racing under the same terms of every new team entering in the last twenty or thirty years with the exception of those three coming in 2010. You are correct, it doesn’t attract new teams who are looking to make any money out of the sport, but the extra cash paid to… Read more »

BadCaptain

Is the payout structure weighted towards the top that much differently than other sports? I think some other sports also have similar payouts like horse racing, tennis, golf. Although they seem to be strictly performance based also.

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