F1’s Billion Dollar Prize Money: How The Cash Was Divided Between 10 Teams

Now that the engines have been switched off and the drivers are on vacation, let’s look at how Formula 1 divides the prize money between the teams depending on where they finished in the Constructors’ Championship.

The 2023 Formula 1 season saw the drivers’ and constructors’ titles sewn up with six races remaining.

Max Verstappen won his third title and Red Bull their second consecutive constructors’ trophy. The constructors’ championship is important because it dictates how the prize money is divided between the ten teams.

So, while Verstappen received the majority of the plaudits for his outstanding 19 race wins from 22 Grand Prix, Red Bull’s achievement helped the team significantly.

Naturally, the top team receives the most money from the prize pot. The rest of the money is distributed among the remaining teams with each team getting a lesser amount the lower they finish.

F1’s Concorde Agreement, a binding business contract that governs the sport, the prize money is made up of 50% of the profit from the sport’s commercial rights.

Ferrari’s Special Bonus?

Besides the prize money for the team’s dependent on their final position in the constructors’ championship, there are also other bonuses.

According to RacingNews365, Ferrari receives a bonus for their longevity in Formula 1. The Italian team has competed in the sport since its inaugural season in 1950. It has been widely reported that the 16-times constructors’ winners’ pocket 5% of the prize pool, equating to $50 million per year.

Other bonuses are afforded to teams who have been successful in recent years, such as winning championships.

The exact figures in prize money are not made public, but F1 publications have pieced together a breakdown of the cash based on financial records and other documents.

The Fight For Money In 2023

After all the peripheral bonuses are paid, there’s around $1 billion in the prize money pot.
Red Bull were untouchable this season, winning 21 of the 22 Grand Prix. Ferrari’s Carlos Sainz won the Singapore GP and was the only other driver to win a race.

While the Spanish driver took the only other win, Ferrari still lost out to Mercedes for second place in the championship. The Brackley-based team’s reliability got them over the line, three points ahead of the Italian team.

The surprise team of the year for us was McLaren. The British team finished fourth in the standings which looked impossible after a terrible start to the season. They finished comfortably ahead of Aston Martin who were urged on by a rejuvenated Fernando Alonso.

Alpine had a disappointing season finishing sixth, while Williams punched above their weight to claim seventh thanks to Alex Albon’s 27 points.

The final three places are occupied by AlphaTauri, Alfa Romeo, and Haas.

2023 Constructors’ Prize Money

These are estimated figures.

1. Red Bull – $140 million
2. Mercedes – $131 million
3. Ferrari – $122 million
4. McLaren – $113 million
5. Aston Martin – $104 million
6. Alpine – $95 million
7. Williams – $87 million
8. AlphaTauri – $78 million
9. Alfa Romeo – $69 million
10. Haas – $60 million