Teams head to Oz with £52m payday

The business of F1 business is something I don’t claim to have a complete understanding of but I do know that the prize money payment system is tiered and staggered in the way it is paid out. As such, today’s news is that the team head into the 2015 season with a dollop of cash to the tune of £52m.

The payment is for the 2013 season and is the final distribution of that year’s prize winnings. According to the article, the payment is made thusly:

“payments of the prize fund are made on the last business day in every month of the world championship season [March to November], with the final payment in respect of each year being made on the last business day of the following February.”

It’s a shot in the arm for the teams who are struggling and names such as Sauber, Lotus, Force India and the recently phoenix-like team known as Manor GP. Half of the cash is split equally between the top 10 teams of 2013 with the remainder being distributed on a sliding scale based on results.

This means that Manor GP will receive £1.3m and while it may not be the lion’s share, every little bit helps. The teams have asked F1 boss Bernie Ecclestone for some assistance as the teams prepare to head to Australia and the article suggests that advanced payments on prize money may be something F1 is willing to offer.

If memory serves correctly, I don’t think that is breaking any new ground as I recall advanced payments being made to struggling teams in years past.

Suffice it to say, F1 has had its challenges recently and while the top team seem insulated from the kinds of financial struggles Lotus, Force India and Sauber face, the debate over how the prize money is distributed seems to have died down from its zenith last fall. Maybe the excitement of a new season is overshadowing the very real need for cash which surely is as real today as it was last November?

Hat Tip: City AM

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