F1 at its best Hardly fair. 2014 payouts revealed AUTOSPORTS By Dieter Rencken and Lawrence Barretto 13 May 2015 inShare Ferrari received more money than any other team in Formula 1 for the 2014 season due to the championship's current payment system, details of which AUTOSPORT can reveal. At the end of each season, Formula One Management collates revenues from three streams - hosting fees, media rights and "other" such as trackside sponsorship and hospitality. It then distributes 65 per cent of the underlying revenues among the qualifying teams. However, while 50 per cent of those revenues is distributed to teams based on their finishing position in the constructors' championship, the other 15 per cent is split between Ferrari, Red Bull, Mercedes, McLaren and Williams - in the form of a premium payment. DIETER RENCKEN analyses F1's finances These premium payments were agreed by the five major teams by way of bilateral agreements in early 2012, ahead of the expiration of the Concorde Agreement. So in 2014, Ferrari received $67million for finishing fourth in the constructors' standings, $25 million less than champion team Mercedes. But the Scuderia received a further $97million in the form of a premium payment, bringing its total revenue to $164 million, more than any other team. Red Bull, which finished second in the constructors' championship, received a total of $156million - the second highest tally - with Mercedes third overall with $126million. McLaren, having scored just two podiums on its way to fifth in the constructors' championship, was the fourth best paid team with $98million. In contrast, Williams, which finished third in the constructors' championship and scored nine podiums, was fifth overall with $83million. Force India finished one place and 26 points behind McLaren in the constructors' championship but it received $38million less than the Woking-based team.
What a load of BS. It's a wonder the smaller teams are as competitive as they are! The amounts given to teams should be based solely on how they finished in the constructors championship. I don't care how long a team has been around or how much they ***** and moan and threaten to leave coughFerraricough, this needs to end.
Some teams have vested interest to maintain that inequal status quo. The set up is wrong, but benefits too much the 5 main beneficiaries for them to accept a different repartition of the money. What surprises me, though, is why so many losers stick to it, or even bother to enter the game. Honestly, for at least 3 or 4 team owners, converting to another series would make sense, rather than playing second fiddles in F1.
And the Big 5 will continue to erode the viability of F1 in the process. Those greedy slobs are writing their own epitaphs with this madness. What about the facts do they not understand?
Sorry guys but nobody watches F1 to see force India. It's no surprise Ferrari gets the most just like the New York Yankees. Whether you love them or hate them you watch and care because they we there.
^This I'm sick of the charitable feelings towards smaller teams. If Marussia left, the sport wouldn't suffer at all. If Ferrari left the sport would become much less than 100 millions worse off. Simple demand/supply relation IMO. Like when a good player gets paid 10 times as much as the average of the others in the same team even if is performing not as well.
I still like my idea the best: Current payouts can stay more or less the same. Team that finishes first gets the least allowed in season testing mileage, team that finishes last the most. Teams can sell off testing mileage as well, raising them money to a) stay alive b) try and become more competitive.
Not this again... None of this is new news. Every year we have this same topic like it's some sort of amazing new insight. Do a thread search and see how many times the same points are made over and over again. Ferrari get too much, the top 5 get too much, not enough for to the minnows. It's all water under the bridge. It won't change. If you want to make it in F1 then get properly funded like RedBull did or go home. RB weren't a top team when they started but they have earned the right to be one and are now considered in the same breath as the old heritage teams. It has always been this way in F1 and it won't change until the sport faces an existential risk.
I understand that the big names deserve more cash, but man, the small teams only get small change. Maybe Manor doesn´t deserve to be in F1 you may say, but what about Sauber? They´ve been there for decades and had been competitive most of the time.
If Sauber's presence improved the sport significantly, I believe they would get paid accordingly. Unfortunately it doesn't for most people as they have very little following.
Very few threads have not been covered before in any subject in this section. And no there are no other threads that distinctively cover the 2014 seasoons pay out. I just posted this years pay out bill, next year there will be another. Some find it interesting and not every one has been around here forever.
I care about Sauber. I think that a Formula 1 with only 4 teams of 5 cars each would be uglier than a Formula 1 with big, medium and small teams.
Bernie seems to keep the ones that matter happy in the cash department, Todt keeps himself busy with safety and keeping the tree huggers happy...so whats going Pete tong wrong... Apart from..The big teams will likely block everything that will materially affect them. The decision-making structure and the FIA’s appalling dereliction of its duties with regard to the sport means that the federation cannot or will not force change.While one understands that the FIA needed money to survive, selling the right to govern the sport was an ill-considered move.... from JS blog
The problem with BMW and others like them is that they quit racing without previous notice if a board of directors decides that racing is not profitable anymore. That´s the reason why we need guys like Peter Sauber, who keep racing as long as they have money.
Clearly working with Red Bull (#2 in the payout list) because they are so happy.... the Harlem Globetrotters needed the Washington Generals to kick around week in week out. F1s no different. Not many people outside of India care about Force India, but they want Ferrari to beat someone. 5 team F1 would be a snoozefest.
There are more than six teams - does the article show or has anyone seen the full list to post here ?
Agree. Maybe its just me, but Force India makes $38M for just showing up? This is a business... so that is why they cant really compete. if FI has a budget of $100M, with sponsor income etc. & FOM payouts that is pretty good ... you can make a profit out of that. Eddie Jordan did it for a long time. There is no way Ferrari are worth $165M just for showing up and being 4th! we're talking about a 1/2 $Billion - for racing. $600M just for showing up. racing.... staggering when you think about it. I like watching it, but I cant ever feel sorry about the "lack of sponsorship" in F-1 poor babies = they might have to fly in a 5-10 year old gulfstream.... God forbid - they might have to fly Commercial... with the common folks.
Are there really more than six teams mr obvious Its not that hard to find, so why not just look. Image Unavailable, Please Login
Formula One is not like any other business. If it was 12 oil companies, you could understand why the 6 more profitable would try to squeeze the 6 under-performing ones out of the business to share the market among themselves. And then, the 6 would start a war in the view of elimination more competition and grow as a result. That's business: the law of the jungle, the survival of the fitest. F1 isn't like that. If the 6 best teams don't care about the 6 lesser teams and manage to exclude them, they could reduce the field by half. Nobody says that more new teams would come and replace them. So, the show could stop because of a lack of participant. Mostly since F1 TV right are sold on the understanding that the GP are held with a minimum of participants. Remember the US GP with 6 cars? A vision of the future maybe... We have seen that Bernie became very twitchy about this when Caterham and Marussia didn't turn up towards the end of last year, or when Manor couldn't compete in Australia. The income of FOM, and the (rich) teams could be at risk if the field is further depleted because of financial unbalance. Beside, there is no certainty that the surviving teams would stay in F1 in the long run ...
