Max Verstappen has bagged his first-ever Formula 1 title in a thrilling down-the-line finish, and now stands to increase his net worth significantly. However much he will be awarded for his achievement, it won’t come directly from Formula 1.
F1 is one of the highest-earning and paying sports in the world, and this year, it is estimated to rack up $1.38 billion.
F1 profit division
Private equity firm CVC oversees the finances of F1. Its earnings are divided between the teams that take part in the race as the prize money fund on one hand, and the Formula 1 group and shareholders on the other.
The prize money makes up 47.5 percent of F1’s earnings. This pot is then split in two, with 50% to be distributed among the top ten teams in the competition with amounts based on how well they performed.
The amount given to all the teams are scaled according to their driver’s position on the F1 table, but the sum that is given to each team is not made public.
Team decides driver’s prize
Since F1 does not award the prize money to the drivers directly, whatever amount Verstappen would receive for winning the race would come from his team.
The 24-year-old’s annual salary is paid by Red Bull, and his reward for clinching the F1 cup would also come from them.
The Dutchman is currently ranked number two on the Forbes list of highest-paid Formula 1 drivers, with Red Bull giving him a salary of $25 million for 2021. But because of today’s spectacular win, he is projected to get a total of $17 million in bonuses, for an estimated total of $42 million for the year.