From multi-million dollar transfer fees to sky-high salaries for sports stars, the business of sport is substantial across the world, and it’s no different with what’s at stake in Formula 1. Every year, many millions are on the line.
Formula 1 is a massive endeavor these days, taking teams of hundreds of people all around the world for 23 races in a season. Over the course of a year, each outfit is allowed to spend up to $135 million – which might cover the cost of developing the car and staff salaries. Well, for everyone except your three highest-paid employees.
The rewards of competing at this level are also massive. On TikTok, user Max Klymenko has broken down the prizes on offer in the top ten highest-paying sporting series in the world. At ten, is the Wimbledon tennis tournament, which offers $3.9 million for its winning player. Then, there are sports like golf, which pays out $18 million for the winner of the FedEx Cup. When it comes to team sports, the prize pot rises rapidly, with the World Series paying $31 million to the winning baseball team.
But that wouldn’t even cover a third of the operating costs of an F1 team. In fact, the winning Formula 1 constructor can expect to pocket an estimated $100 million at the end of the year. However, that prize fund is based on F1’s earnings for the year, so can fluctuate each season. Some reports suggest it was closer to $66 million for the 2022 title.
In the case of the team challenge, the winning side will be awarded 14 percent of the total prize pot, according to Sporting News. The rest of the allocation for the teams will be split between the other nine sides, with the team that places tenth taking home just six percent of the total prize money.
Weirdly, there isn’t a dedicated prize fund for the winning driver, with teams instead offering lucrative bonuses for race wins and a shot at the world title.
It’s for this reason that teams scrap for every point they can get each weekend. Because while it’s all but certain that Red Bull will walk away with the title again in 2023, teams lower down the grid are fighting for millions of dollars to support their development next year.