How Much Money Do F1 Teams Earn? Summary Of Estimated Earnings For Season 2023

All ten Formula One teams receive prize money based on their place in Constructor's Championship standings at the end of the season. Here is an estimate of how much each team earned in 2023.

F1 is a huge business that earns billions of dollars every single year. The organization makes money from commercial rights, which include broadcasting rights, race hosting fees, sponsorship and advertising, and merchandising.

It is estimated that about one-half of the commercial rights are distributed amongst F1 teams as per the Concord agreement. The Concord Agreement is an agreement between the FIA (regulatory body), F1 teams, and Formula One group.

It outlines terms by which every single team competes in races and the distribution of the prize money. While it is estimated that teams get 50% of the total income, it is not always the case.

It is suggested by motorsport.com that with growing revenue, the percentage share of Formula One's management increases. F1's total revenue in 2022 was $2.57 billion, of which $1.157 billion was translated into prize money for the teams. That would be equal to around 45%. 

The prize pool money for the teams also includes bonus payments, which are estimated to account for around 25% and are not included in the prize money table below.

All the money distribution and bonus payments are kept secret, but according to RacingNews365, Scuderia Ferrari, for example, gets an additional 5% from the prize pool (around $50 million a year) for being part of F1 since day one.

F1's earnings are expected to rise by as much as 10%. That would translate into about $2,83 billion dollars, 45% of which is $1,27 billion dollars. If we further subtract 25%, we get a prize pool of about $1 billion.

The table bellow is based on the 1 billion prize pool and does not include bonuses.