Do F1 teams make money?

abisson · 07-30-2011, 11:19 AM

I am watching the Hungary GP Qualifications, and I was thinking. Do the teams make money? I know the cost per year for Ferrari is like what, half a billion?

How can a team like Sauber or Virgin make money? Do you think the ads really generates an equivalent revenue?

Experts opinion needed!

Thx

raisemyrent · 07-30-2011, 01:28 PM

yes, they do, even williams who has been on a downward spiral in the last few years posted a profit last year, and even went into the stock exchange (it didn't help that it does ever worse).
ferrari spend hundreds of millions but say that it is an essential activity for their road car sales.
I think that all teams make money; nobody does anything for free. Honda, Toyota, and BMW did withdraw a couple years back, though, because of the global crisis. So when it's not profitable or worth it, they fold. good rule of thumb: if they're around, they're making money or achieving whatever it is they're after.

p.s. google formula money

onelove · 07-30-2011, 01:56 PM

Ferrari is an apparel company that just happens to race F1 and sell cars. Not all teams make money, but some do. Some also loose their ass every year (Toyota fell victim to this and eventually quit).

UltimateBMW · 07-31-2011, 01:24 AM

There is prize money that is given at the end of the year that depends on the Constructor standings.

The prize money in 2007 was about this:
1st – USD80,000,000
2nd – USD74,000,000
3rd – USD67,000,000
4th – USD60,000,000

5th – USD48,000,000
6th – USD46,000,000
7th – USD44,000,000
8th – USD42,000,000
9th – USD39,000,000
10th –USD37,000,000

Then, there is also all the sponsorship money that comes in. Which could easily match the amount of the prize money.

Also, Ferrari gets an extra cut from the F1 pool simply because they are Ferrari.

Nang Vann · 07-31-2011, 05:32 AM

$80 Mill !

Fo shizz ay?

E90SLAM · 07-31-2011, 09:33 AM

Besides the championship position prize money, isn't FOM also give teams money per points they scored throughout the season?

raisemyrent · 07-31-2011, 07:19 PM

they help them with freight and transportation costs yeah, that is why in the old days when minardi or prost etc scored points (by coming 6th or better) they partied like they had won the race

UltimateBMW · 08-01-2011, 03:58 PM

Quote:

Originally Posted by E90SLAM

Besides the championship position prize money, isn't FOM also give teams money per points they scored throughout the season?

This is news to me, but not entirely that surprising.

Have you read the Formula Money report?

E90SLAM · 08-01-2011, 06:52 PM

Quote:

Originally Posted by UltimateBMW

This is news to me, but not entirely that surprising.

Have you read the Formula Money report?

No, sounds interesting tho, but I'd hate Bernie even more!

I remember I heard something from both SPEED and BBC about every points are valuable points to the teams. As their year end profit after the season concluded, will be calculated based on Constructors Championship points.

arggg45 · 08-01-2011, 08:31 PM

Quote:

Originally Posted by E90SLAM

No, sounds interesting tho, but I'd hate Bernie even more!

I remember I heard something from both SPEED and BBC about every points are valuable points to the teams. As their year end profit after the season concluded, will be calculated based on Constructors Championship points.

IIRC, its because only the top 10 teams are eligible for the assistance for shipping and such.

Also, the teams get a percentage of revenue from the broadcasts.

RaceBlood · 08-22-2011, 07:55 AM

I am told the top F1 drivers, are the highest paid athletes in the world, of you look at the salary broken down, per race.

UltimateBMW · 08-22-2011, 08:15 AM

Quote:

Originally Posted by RaceBlood

I am told the top F1 drivers, are the highest paid athletes in the world, of you look at the salary broken down, per race.

Per event, maybe. But none of them have broken a full bill yet. So, I think Tiger still holds that one down for now.

MikeyV · 08-22-2011, 12:46 PM

Quote:

Originally Posted by UltimateBMW

Per event, maybe. But none of them have broken a full bill yet. So, I think Tiger still holds that one down for now.

It was reported years ago that Schumacher was worth a billion. During his Ferraris years his contract with them was 35 mill to drive, plus win bonus, plus championship bonus, plus endorsements, all up the report I read estimated he was earning 100 mill per year. Since he wasn't a dick like Tiger I guess the only people who really know are him, his wife, the German taxman and Willie Webber.

The teams also get a slice of the tv rights.

UltimateBMW · 08-22-2011, 12:52 PM

Quote:

Originally Posted by MikeyV

It was reported years ago that Schumacher was worth a billion. During his Ferraris years his contract with them was 35 mill to drive, plus win bonus, plus championship bonus, plus endorsements, all up the report I read estimated he was earning 100 mill per year. Since he wasn't a dick like Tiger I guess the only people who really know are him, his wife, the German taxman and Willie Webber.

The teams also get a slice of the tv rights.

Didn't know this, thanks for the info!

ADV.1 Matt · 08-22-2011, 12:53 PM

^^ Give Vettle a few more years... I think he'll do that for sure. Maybe Alanso first as he's been around for such a long time (plus he probably has massive sponsor deals)?

07-30-2011, 11:19 AM	#1
abisson Canada FTW. 184 Rep 519 Posts Drives: 2016 VW R - Stg 2 Join Date: Jul 2009 Location: Maple Syrup Country iTrader: (0)	Do F1 teams make money? I am watching the Hungary GP Qualifications, and I was thinking. Do the teams make money? I know the cost per year for Ferrari is like what, half a billion? How can a team like Sauber or Virgin make money? Do you think the ads really generates an equivalent revenue? Experts opinion needed! Thx
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07-30-2011, 01:28 PM	#2
raisemyrent Captain 43 Rep 910 Posts Drives: Black Sapphire 428i xD GC Join Date: Mar 2008 Location: Vancouver, BC iTrader: (0)	yes, they do, even williams who has been on a downward spiral in the last few years posted a profit last year, and even went into the stock exchange (it didn't help that it does ever worse). ferrari spend hundreds of millions but say that it is an essential activity for their road car sales. I think that all teams make money; nobody does anything for free. Honda, Toyota, and BMW did withdraw a couple years back, though, because of the global crisis. So when it's not profitable or worth it, they fold. good rule of thumb: if they're around, they're making money or achieving whatever it is they're after. p.s. google formula money __________________ 435i Coupe Estoril Blue on Black X Drive, M Sport Package Stage II, Premium Package
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07-30-2011, 01:56 PM	#3
onelove Track Head 24 Rep 503 Posts Drives: 07 Z4M Join Date: Jan 2008 Location: Orlando,FL iTrader: (0)	Ferrari is an apparel company that just happens to race F1 and sell cars. Not all teams make money, but some do. Some also loose their ass every year (Toyota fell victim to this and eventually quit). __________________ 2004 Porsche GT3 \|White HRE R40 Monoblocks \| KW Clubsport Suspension \| RSS Lower Control Arms and Suspension Links \| GT3RS Wing and Front Bumper \| Cup Car Lip \| Euro GT3 Seat \| GMG Half Cage \| Europipe Exhaust \| EPL Tuning
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07-31-2011, 01:24 AM	#4
UltimateBMW Brigadier General 399 Rep 3,288 Posts Drives: MP4 Join Date: Dec 2006 Location: South iTrader: (0)	There is prize money that is given at the end of the year that depends on the Constructor standings. The prize money in 2007 was about this: 1st – USD80,000,000 2nd – USD74,000,000 3rd – USD67,000,000 4th – USD60,000,000 5th – USD48,000,000 6th – USD46,000,000 7th – USD44,000,000 8th – USD42,000,000 9th – USD39,000,000 10th –USD37,000,000 Then, there is also all the sponsorship money that comes in. Which could easily match the amount of the prize money. Also, Ferrari gets an extra cut from the F1 pool simply because they are Ferrari. __________________
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07-31-2011, 05:32 AM	#5
Nang Vann Lieutenant Colonel 25 Rep 1,513 Posts Drives: E46 M3, R35 GT-R Join Date: May 2011 Location: Australia iTrader: (0)	$80 Mill ! Fo shizz ay? __________________ Moving on up!
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07-31-2011, 09:33 AM	#6
E90SLAM Supreme Allied Commander 1963 Rep 61,781 Posts Drives: A BBS WHORE Join Date: Jul 2007 Location: . iTrader: (6) Garage List 2022 BMW X3 sDrive30i [0.00]	Besides the championship position prize money, isn't FOM also give teams money per points they scored throughout the season? __________________
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07-31-2011, 07:19 PM	#7
raisemyrent Captain 43 Rep 910 Posts Drives: Black Sapphire 428i xD GC Join Date: Mar 2008 Location: Vancouver, BC iTrader: (0)	they help them with freight and transportation costs yeah, that is why in the old days when minardi or prost etc scored points (by coming 6th or better) they partied like they had won the race __________________ 435i Coupe Estoril Blue on Black X Drive, M Sport Package Stage II, Premium Package
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08-22-2011, 07:55 AM	#11
RaceBlood Going nowhere fast. 56 Rep 2,243 Posts Drives: 2 wheels Join Date: Mar 2011 Location: Downtown iTrader: (0)	I am told the top F1 drivers, are the highest paid athletes in the world, of you look at the salary broken down, per race.
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08-22-2011, 12:53 PM	#15
ADV.1 Matt Lieutenant Colonel 130 Rep 1,512 Posts Drives: N/A Join Date: Feb 2011 Location: Miami, FL iTrader: (0)	^^ Give Vettle a few more years... I think he'll do that for sure. Maybe Alanso first as he's been around for such a long time (plus he probably has massive sponsor deals)?
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