How much money has each Formula 1 team earned from prize money in 2024?

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The pinnacle of achievement in Formula 1 is undoubtedly the Drivers’ Championship, but when it comes to financial rewards, the Constructors' Championship is where the real profits lie.

In Formula 1, every position in the Constructors’ standings is critical because the higher a team finishes, the larger their share of the prize fund. This means that battles for positions as low as sixth place can carry almost as much significance as the fight for first. The importance of these placements was evident this season, with significant financial implications shaping team dynamics.

Red Bull's share of the prize pool took a major hit this year after losing their Constructors' title, primarily due to recurring issues with the RB20. Additionally, Sergio Perez's underwhelming performances cost the team millions in prize money and ultimately his seat for the 2025 season. Similarly, Mercedes suffered financially after dropping two places in the standings compared to 2023. McLaren, on the other hand, emerged as the biggest winners, clinching the Constructors' Championship after finishing fourth last year and reaping the financial rewards that came with the victory.

The distribution of prize money is governed by the Concorde Agreement, a commercial contract among all teams that outlines how revenue is allocated. According to this agreement, Formula 1's team prize pool is based on 50% of its commercial rights profits. However, this share can fluctuate, as Formula One Management's portion increases once certain revenue thresholds are reached.

Prize money is not divided equally among the teams. Ferrari, for example, receives an additional bonus of around 5% due to its historical significance, having participated in every Formula 1 season since 1950. Other bonuses are granted for past successes, such as championship wins, which can result in up to 25% of the pot being allocated to bonuses alone, leaving the remaining amount to be shared among all 10 teams.

For 2024, the prize money figures, as estimated by Autosport, are based on 2023 revenues converted to pounds sterling. The total team payments are calculated at approximately £1.2 billion, with a prize pool of £1 billion.

The Financial Ups and Downs of 2024

McLaren emerged as the top earners, securing approximately £106 million, while Red Bull's total dropped to £93 million due to their decline in performance. Mercedes also saw a reduction, earning £86 million compared to £99 million the previous year after finishing fourth.

Alpine's dramatic rise from ninth to sixth, aided by their podium finish in Brazil, resulted in an additional £20 million in prize money. In contrast, Sauber ended the season as the biggest loser, finishing last behind Haas and experiencing a significant financial setback.

As the Constructors' Champions, McLaren will face a hefty entry fee of £4.8 million for the 2025 season. This fee is calculated at a higher rate per point for the first-placed team compared to the other nine competitors. To put this into perspective, McLaren’s entry fee alone exceeds the combined fees of Aston Martin, Alpine, Haas, Red Bull, Williams, and Sauber.

Despite their victory, McLaren's 666-point tally is nearly 200 points fewer than Red Bull's total from the 2023 Formula 1 campaign. Consequently, their entry fee remains lower than the £5.8 million Red Bull paid for their record-breaking performance last year.

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