F1 prize money: How much do GP teams and drivers really make?

Modern Formula 1 is composed of two world championships: one for the drivers, where sporting greatness is the main motivation, and the other for the teams, which compete for millions of dollars in prize money.

Instead of awarding large amounts of money to the top finishers in each race, F1’s prize pot is distributed between all ten teams at the end of each season, with the amount depending on where they finished in the constructors’ championship.

In 2024, McLaren earned an estimated $140 million (£106 million) for winning its first constructors’ title since 1998, while Sauber received $60 million (£45 million) for finishing at the very bottom of the standings.

That’s not to say that drivers go unrewarded, though. They typically have clauses in their contract earning them bonuses for scoring points, finishing on the podium or winning, while others are linked to their finishing position in the drivers’ championship.

F1’s prize pot

While the Concorde Agreement still centers on a roughly 50% share of F1’s profits going to teams, this percentage drops once revenues surpass certain thresholds. At current revenue levels (now well above $3 billion), the teams’ share is closer to 45%. For example, in 2024, Liberty Media paid teams $1.266 billion, which was about 61.5% of F1’s OIBDA, but less than 50% of total revenue.

In 2024, F1’s revenue reached $3.4–$3.6 billion, and the total distributed to teams was about $1.266 billion (USD). Some sources estimate the total prize pot (including bonuses and special payments) as high as $1.5–$2 billion, but the core constructors’ prize pool is now less than half of total revenue.

Some teams are given preferential treatment when it comes to sharing out the money. Ferrari receives at least 5% of the prize fund, but this can escalate up to 10% if the prize pool exceeds roughly $1.6 billion. Other teams like Red Bull and Mercedes receive performance-based bonuses for sustained success, but not the same historical bonus as Ferrari.

The rest of the prize money is then split between all 10 teams, in proportion to where they finished in the constructors’ standings. The champions receive an estimated 14%, with the teams behind them gradually receiving less. The tenth-place team receives 6% of the total prize money.

This allocation was agreed by F1, the teams, and racing’s governing body, the FIA, in what is known as the Concorde Agreement. It sets out the terms of how Formula 1 is run, including the money allocated to prize fund and how it is distributed. The agreement is not public, but the basic elements are known.

Estimated F1 prize money for 2025

In 2024, F1 reported an annual commercial revenue of $3.65 billion (£2.9 billion)—a 14% increase compared to 2023—and created an estimated prize pot of $1.27 billion (£1.0 billion) for the teams.

Based on that figure, here’s how much each constructor could have received in 2025 — depending on where they finished in the final standings.

Do F1 drivers receive any prize money? 

Drivers do not receive F1 prize money for their finishing position in either races or the world championship According to F1 contract lawyer Dan Chapman, who previously represented Alex Albon during his move to Red Bull in 2019, it is possible for drivers to negotiate a share of the team’s prize money. But more often their contracts are made up of salary and bonuses.