Choose your language
Stay in
Go to
x

F1's new owners take aim at Ferrari's $100m bonus

Ferrari receives $100 million in prize money each year, while some teams get less than half of that, and F1's new owners are looking to reverse the benefits Ferrari and other top teams receive.

F1i
by F1i
22nd January 2017

article:22nd January 2017

Formula One’s new owners Liberty Media Group are targeting some of Ferrari’s unique perks for competing in the sport, including their guaranteed $100 million annual prize pay-out.

Ferrari is the only team which has competed in the championship ever since it began in 1950, and as a result has built up a number of financial and organisation benefits.


Ferrari receives at least $100 million in prize money each year compared with backmarkers Manor and Sauber who receive only half that amount, according to Forbes business magazine.

But Liberty wants to see a more even playing field in the sport and is aiming to reverse some of the benefits accrued by Ferrari and other top teams in the sport.

“If you’re Ferrari, you have enormous sponsorship revenue that goes directly to you,” Liberty’s chief executive Greg Maffei said. “That’s going to be impacted more positively by great races.

“So thinking about balancing the team payments, so they’re a little more balanced and creates more fairness, has to be weighed, in Ferrari’s mind, I would expect, by the fact that creating a great platform helps our sponsorship revenue, too, so there’s give-and-take.”

Liberty is also reported to be considering introducing a budget cap to the sport to cap research and development costs.

One unnamed source last month, said: “It makes no sense to have teams spending the better part of $400 million. That money is not doing anything good for fans. It is just wasted on competing on technology.”

However Ferrari chief executive Sergio Marchionne came out as opposed to the idea of a cap, saying that previous attempts to restrict spending had been completely ineffective: “We haven’t saved a Euro. We have simply redistributed our spending to other areas.”

Keep up to date with all the F1i.com news via Facebook and Twitter.


Share

Comments