Formula1 generates billions of dollars in terms of revenue and is one of the wealthiest sport. Liberty media took control of F1’s commercial rights from 2017 and wanted to provide more equitable division of revenue between the sport’s teams.
F1’s eighth and latest Concorde agreement was signed in 2021 between Liberty media , FIA and F1 teams . The Concorde agreement is strictly confidential and includes terms by which teams compete in races , and how TV revenues and prize money is shared .
How revenue is generated :
Revenue is generated by 4 streams .
- Race Promotion – 31%
- Broadcast rights – 40%
- Sponsorship – 16%
- Merchandising ,licensing and hospitality – 13%
Liberty media earns around $2.2billion of revenue . Of which $800 million will be its own expense and profit . $400 million will be allocated for bonus pot .
The championship team will get around $100 million while the last team will get around $60 million and the remaining amount is distributed between teams with a sliding scale of 10% .
The bonus money :
Till 2021 season Ferrari used to get 10% long standing team bonus as they are the oldest team in F1 and bring a substantial amount of traffic to F1 .Starting from 2022 season the bonus has been reduced to 5% .
The bonus amount is distributed in a 2 tier structure .
- A team with a single constructors’ championship will receive a basic bonus .
- A team with two or more constructors’ championship will receive a bigger bonus .
The exact revenue and the amount distributed among teams are highly confidential and exact data is not available .
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