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Revealed: Formula 1 team payments for 2017

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Revealed: Formula 1 team payments for 2017
By:
Co-author: Lawrence Barretto
May 8, 2017, 11:08 AM

Ferrari's drop to third place in the constructors' championship last year did not stop the Maranello squad from maintaining its place as Formula 1's top commercial rights earner, Motorsport.com can reveal.

At the start of each season, Formula One Management projects revenues from three streams - hosting fees, media rights and other income avenues, such as hospitality and trackside sponsorship.

FOM's 2016 turnover is estimated at $1.83bn, with underlying revenues estimated at $1.38bn.

It then distributes approximately 68 percent of projected underlying revenues among the qualifying teams.

That figure of $940m is 3.5 percent down on last year's figure due to anticipated increases in marketing costs in line with FOM owner Liberty's plans for the sport, 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. 

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

The table below, sourced by Motorsport.com, details how revenues are disproportionately distributed.

2016 FOM team earnings in $m – disbursed over 10 instalments during 2017, in order of payout*

Team  Col 1  Col 2  Col 1+2  LST** CCB***  Other  Total  2016 ±  2016 Class
 Ferrari  36  41 (13%)  77  68  35    180  -9%  3
 Mercedes   36  61 (19%)  97    39  35  171  -  1
 Red Bull   36  52 (16%)  88    39  35  161  +12%  2
 McLaren   36  31 (9%)  67    30    97  +18%  6
 Williams   36  33 (10%)  69       10****  79  -9%  5
 Force India   36  36 (11%)  72        72  +7%  4
 Toro Rosso   36  23 (7%)  59        59  +3%  7
 Renault   36  16 (5%)  52        52  -19%  9
 Sauber   36  13 (4%)  49        49  -10%  10
 Haas  *****    19 (6%)  19        19  -  8
 Total  324,5  324,5  649  68  143  80 940   965 (-3,5%)  

Column 1 payments are calculated based on a team's classification over two of the past three years, while Column 2 payments are based solely on a team's 2016 classification, with only the top 10 qualifying.

The Column 1 pot is divided equally among all qualifying teams, with each estimated to earn $36m.

Had Manor survived, that figure would have been $32.5, $1m down on the previous season, but following the outfit's closure, its payment was shared equally with the other nine qualifying teams.

As Haas has only completed one season, it does not qualify for Column 1 payments.

Column 2 is calculated on a sliding scale from first to 10th place with first receiving 19 percent of the fund, sixth nine percent and 10th four percent.

Ferrari, Mercedes, Red Bull and McLaren have agreed separate deals for constructors' championship bonus payments. Ferrari also receives a long-standing team payment while Williams collects a heritage payment.

Red Bull receives an extra payment for being the first team to sign the current bi-lateral agreement, which runs to 2020, and this totals $35m.

After meeting its agreed target of two world championships, Mercedes earns a special annual payment that matches Red Bull's.

Ferrari will receive $180m in total, 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 adrift in the constructors' championship. Mercedes won both the drivers' and constructors' championships for the third successive year, but still received $9m less than Ferrari.

Force India and Williams both finished ahead of McLaren in the standings, but each receive less courtesy of McLaren's CCB payment.

If the pot was shared out equally, each team would get $94m. That would leave Ferrari's payment down by $86m while Sauber, the final team to qualify for Column 1 and 2 payments, would receive an extra $45m.

Motorsport.com contacted FOM, which refused to comment on the revenues.

Key:

* Figures rounded off for simplicity

** Long Standing Team

*** Championship Constructor Bonus (double champions)

**** Heritage Bonus

***** Haas does not qualify for Col 1 income until after second season (2017)

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Series Formula 1
Author Dieter Rencken