The millionaire prizes of F1: how much did Red Bull and the other teams receive in 2023?

The Formula 1 continues to be the queen discipline of world motorsport, and as such, every season ends with teams cashing in a millionaire “dowry” of financial rewards, in addition to the titles achieved by the winners.

In the year that is ending, the World and F1 Championship was dominated by Max Verstappen, who won his third World Drivers’ Championship, achieving victory in 19 of the 22 Grand Prix races held, and by Red Bull, who once again won the Constructors’ Championship.

In the fight for the remaining podium places, Mercedes and Ferrari battled until the last Grand Prix in Abu Dhabi, in a duel of millions considering the division of the millions that the teams collect at the end of each season.

In other words, just like the clubs that participate annually in the UEFA Champions League, the 10 F1 teams have a financial “cake” of about €2 billion to divide among themselves.

Although the details and the exact division of the prize money are not public, it is possible to estimate how much the teams receive, based on the information that is known and taking into account the Concorde Agreement, which is nothing more than the major agreement that governs the relations between the Formula 1 teams, the International Automobile Federation (FIA), and the Formula One Group, and aims to promote a more balanced competition among the teams.

Since Liberty Media arrived in F1 in 2017, there has been a greater effort to ensure a more equitable distribution of financial prizes, and for that, it is known that the annual income distribution among the ten Formula 1 teams is determined through a combination of factors, including a team’s performance and historical success, as well as its contribution to the overall value of the sport.

This is the case for Ferrari, which receives an additional bonus for its continuous presence in the championship since its inception in 1950, and which is estimated to be around 5% of the total prize.

In addition to this extra bonus, teams also receive a portion of the revenue generated through broadcasting rights agreements and sponsorships.

Thus, it is estimated that the bonus amounts paid to the teams are around 25%, with the remaining financial “cake” being divided among the 10 teams present in the championship, according to their rankings in the Constructors’ Championship.

In recent years, the champions were entitled to a prize of 20% of the total amount to be distributed, while the team that finished in 10th place in the Constructors’ Championship received only 6%. Currently, the champions receive 14% of a much higher prize, while the 10th team still receives 6%.

Although the exact values are not known, it is possible to estimate the prizes earned, and it is certain that in this matter, Red Bull was the big winner.