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.
