Ferrari to receive more prize money than Red Bull?!

Chris Jenkins · Dec 4, 2011

Hey guys. I just saw this on The F1 Times.
What a joke!

Ferrari are set to be awarded more prize money than Drivers' and Constructors' champions Red Bull, despite the Italian teams third place finish in the standings.
The unique system in which the sport awards its prize money to the teams is a closely guarded secret, but research carried out by Autosport reveals that Ferrari are set to receive £7.3 million ($11.5m) more than the top performing team, and a massive £12.7m ($19.8m) more than runners-up McLaren.
Ferrari, which won just a single race this season compared to McLaren's six and Red Bull's 12, receives a bonus before the season has even already begun, thanks to its 'historical contribution' to the sport.
It's reported that Ferrari receives 2.5% of the total prize-fund before it's been divided up amongst the 12 teams, based on their finishing positions. That equates to £11m ($17.3m) of the total £443m ($691m) pot which is 50% of Formula 1's earnings, as stipulated in the Concorde Agreement.
That bonus is then topped up with a 'Category B' entitlement based on a teams historical success. Ferrari is estimated to receive another £10.2m ($16m), bringing their total to £21.3m ($33.3m) - even before their final finishing position in the WCC is known.
The remaining money is then split 50/50 into 'Category 1' and 'Category 2' payments. The top ten teams each receive an equal share of the category 1 fund, 10% each.
Finally, once Ferrari has taken its initial 2.5% and the category B and category 1 payments have been shared amongst the top teams, the remaining prize-fund stands at roughly £198m ($310m).
This final figure, or category 2 as it's known, is then apportioned to the teams based on their seasons finishing position. It works out at roughly 19% for placing first, 16% for second, 13% for third and so on with tenth taking 4%, whilst Virgin and HRT are left with nothing but the prior agreed £6.5m ($10m) new team payment.
Ferrari will walk away from the 2011 season with £67m ($104.7m) in prize money having received £25.8m ($40.3m) for placing third, adding to that their 2.5% bonus of £11m, category B payment of £10.2m and category 1 payment of £20m ($31m).
Red Bull will take home £59.7m ($93.1m), £7.3m less than Ferrari, whilst McLaren walks away with about £54.5m ($85m).
The way the money is divided may sound unfair, but it's believed that almost all the teams on the grid back Ferrari's 2.5% bonus and insist it is included in the next Concorde Agreement as the manufacturers presence on the grid brings with it credibility, and therefore boosts the prize fund more so than it takes in 'extra' payments.

Luke McVicar · Dec 5, 2011

knew about this for a long time. Its no big deal Ferrari add soo much to f1 that its worth it.

Kennett Ylitalo · Dec 6, 2011

Luke McVicar said:
knew about this for a long time. Its no big deal Ferrari add soo much to f1 that its worth it.

What do they add? Two cars to the grid, nothing more... I could easily live without F1 Ferrari team in the grid.

David Jundt · Dec 6, 2011

Which other team has been on the grid since the start of F1? Eh?

...

See? Probably haven't really read about the history of F1, it goes deeper than that. Ferrari not on the grid? Would be strange.

If that's a reason to get more money, dunno. Although that's called committment.

Hampus Andersson · Dec 6, 2011

F1 needs Ferrari and Ferrari needs F1.

Think of it like this, if you are at work. You have worked there for 5 years, just starting to impress the boss.
Compared to Joe who´s been working there for 55 years and have a good relationship with the boss.

Who do you think gets more paid?

Red Bull don´t complain, they can´t really but they understand why Ferrari makes this much money (and in my opinion, rightfully so) and they are not mad at Ferrari either.

Would you rather win an F1 season with only privateer teams with not so great budgets or do you want to have a piece of paper where it says you beat the legends Ferrari and Mclaren over 20 races?

Chris Jenkins · Dec 6, 2011

I understand it, but I don't agree with it.

Gaëtan Legastelois · Dec 7, 2011

Hampus Andersson said:
F1 needs Ferrari and Ferrari needs F1.

Bernie said "F1 doesn't need Europe"

Hampus Andersson · Dec 7, 2011

Bernie likes to talk

Markus Neumann · Dec 7, 2011

It's not fair, but - if Ferrari can use that money to make a car that can compete with the RB, I'm totally cool with it

Chris Jenkins · Dec 7, 2011

Markus Neumann said:
It's not fair, but - if Ferrari can use that money to make a car that can compete with the RB, I'm totally cool with it

What've they been doing with the money since 2007 then?

Xosé Estrada · Dec 7, 2011

No Ferrari no F1.

Some ones will love it, someones will hate it, but it must be there.

Chris Jenkins · Dec 8, 2011

I don't really like how Ferrari is all take and no give.

Kennett Ylitalo · Dec 8, 2011

I love Ferrari legacy and these kinds of things tarnish that in a big way. Totally not cool, bro.. Everybody needs to be on a level playfiel, no behind the curtains deals where one team gets to run the show. I say, boot Ferrari out, see if anyone cares. Maybe they'd learn some humility.

No ferrari no F1,, really? Boot everybody else out then, let F1 one be one make series. I really can't understand those opinions that say Ferrari can have extras.. Why, give me one legitimate reason that isn't based on sentimentality.

Ramon Alonso · Dec 8, 2011

Noooo!!!!! Don't give those red cars more money!!!!

April Dillon · Dec 9, 2011

Kennett Ylitalo said:
I love Ferrari legacy and these kinds of things tarnish that in a big way. Totally not cool, bro.. Everybody needs to be on a level playfiel, no behind the curtains deals where one team gets to run the show. I say, boot Ferrari out, see if anyone cares. Maybe they'd learn some humility.

No ferrari no F1,, really? Boot everybody else out then, let F1 one be one make series. I really can't understand those opinions that say Ferrari can have extras.. Why, give me one legitimate reason that isn't based on sentimentality.

Agreed 100%. If the FIA want to give the slower teams some extra cash to help them catch up, fair enough. If they want to hand out awards based on championship success, fair enough. But it doesn't really make much sense throwing in exceptions like this.

Besides, F1 has survived for a long time despite losing some very significant teams over the years. Lotus have had no representation in Formula 1 until recently, and there's no sign of BRM, Cooper, Brabham, etc. on the field right now. But the sport's still going strong. If Ferrari want to participate in F1, I'd like to think it's for better reasons than favoritism.

Hampus Andersson · Dec 9, 2011

They have been in F1 since the second ever race.

61 years.
832 races.
16 Constructor titles.
15 Driver titles.

That's loyalty right there

James Chant · Dec 9, 2011

Second race? Not good enough then!

#sarcasm

Gaëtan Legastelois · Dec 9, 2011

I will repeat myself but..
For the first season of F1, 7 GP, all in Europe except Indianapolis. Including Grand Prix de France (Reims-Gueux) and Belgium (Spa).

What about this part of the history of the F1 ??