Formula One follows a very complex business system and revenue share model. Teams also have to pay a large amount of money before the forthcoming season to secure a place in the field.
The Moving Circus is one of the most lucrative sporting event in the world and revenue from one single Grand Prix can be anywhere in the region of $100 million to $140 million on average while total profit of Formula 1 has been growing in the last decade year after year.
An amended entry fee system was introduced in 2013. According to this model, every team has to pay a flat entry fee of $516128 along a sliding scale dependent on its success. The Constructors’ Champion squad must pay a fee of $6194 for each point earned, while the remaining outfits pay $5161 for each championship unit scored. Teams must transfer the money by 30 November.
There were five teams which had to dig deeper in their pockets than in 2016. Ferrari, Sauber, Haas, Renault and Force India must pay more for its 2018 entry than in the previous year. Of these outfits, the fabled Italian team has copped the biggest increase. The Maranello-based team handed over $3210170 for its total of 522 points. It meant an increase of $639964 on the previous year.
Red Bull and Mercedes could save up the biggest money compared to last year. It did not have any consequence for Mercedes because the Anglo-German team became champion even with its total of 668 points, however in the case of Red Bull it meant a slip of one place in the order because of Ferrari’s upturn in form.
Mercedes had to pay the lowest amount of money since it emerged as a title-winning force in 2014. The Stuttgart-Brixworth-Brackley-based company scored 100 point less than last year while it scored more than 700 championship units in the first three years of the double-hybrid era.
|Place||Team||Point tally||Entry fee (dollar)||Compared to 2016|
|1.||Mercedes||668||4 653 720||-600 818|
|2.||Ferrari||522||3 210 170||+639 964|
|3.||Red Bull||368||2 415 376||-516 100|
|4.||Force India||187||1 481 235||+72 254|
|5.||Williams||83||944 491||-283 855|
|6.||Renault||57||810 305||+252 889|
|7.||Toro Rosso||53||789 661||-51 610|
|8.||Haas||47||758 695||+92 898|
|9.||McLaren||30||670 958||-237 406|
|10.||Sauber||5||541 933||+15 483|
|Total:||16 276 544||-616 301|