Only Top 10 Teams to Receive ‘Prize Money’ in 2014
FOM top-dog Bernie Ecclestone has revealed that it is the organization’s intention to only pay out prize money to the top 10 teams in the constructors championship.
The change comes hand-in-hand with the series’ preparations to float on the Singapore stock exchange.
Private equity firm CVC Capital Partners, who own the majority stake of the Formula One Group, is readying the organization for the stock exchange – with the series predicted to be valued at around £6,500,000,000. ($10bn).
The Concorde Agreement is an agreement which governs the politics of the sport. The current contract expires at the end of this season. A new agreement will be written, which will then run until 2020 – however, it is yet to be completed and signed by all parties. The documents are confidential.
Ecclestone has been in talks with all teams about the flotation, except Marussia. Graeme Lowdon, CEO of Marussia, said that the team had not been in talks with CVC. However, the team was reluctant to comment.
Lowdon said ”It is our understanding that none of the parties are making any public comment about the financial discussions relating to a new Concorde Agreement and on that basis we would prefer not to make any comment”
“For three years we did something different because we had an agreement with (former FIA president) Max (Mosley) but from now on we will pay the top 10 and that’s it,” Ecclestone told the Daily Telegraph.
Once the new Concorde Agreement is completed, it will make void the individual agreements between teams & series management.
The complex document is ”in the hands of the lawyers”, explained Ecclestone.
Estimates made last year, based on information from 2011, cleared some of the fog surrounding the actual payouts.
Around $700,000,000 of F1′s revenues are set aside to be distributed as prize money. Of that $700m, $17.5m is given to Ferrari – as part of an agreement the two companies have.
$341.25m is then divided equally between teams who have finished in the top 10 for two of the last three seasons – so, in 2012, $34.125m each. If there aren’t 10 teams that qualify for this, then the money is divided up among those teams who do meet the requirements.
The remaining $341.25 is then divided again between all of the teams – with a proportional amount going to each position.
$10m goes to teams finishing in P-11 and -12. Unlike points, where you have to place above a threshold to score, money is given to all teams. This is presumably to encourage teams to take part – and help their floundering budgets.
Image: Turkiye F1
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