Winning a world title has more than just positive aspects, some pretty big financial ones too and not always positive.
To be specific, paying the registration fee the following year, which is calculated on the basis of earnings and, therefore, the points won in the previous season – more earnings mean bigger fees.
And so it’s been six years since Mercedes paid more than any other team.
But if in the first four seasons of triumphs the cost per point was capped at the same rate, and stood at 6,200 euros. But in the last two years the figure has risen to almost 6,700 per point, and for a team that makes an avalanche of points such as the Mercedes domination we’ve seen, the situation becomes expensive.
The change in the mechanism compared to the Ecclestone era is due to Liberty Media, which allowed the team to earn more and, therefore, to pay a higher entry fee linked in part to the points earned.
Capitalism at it’s greatest.
After the 2018 World Championship, Formula 1 kept 4.9 million dollars assigned to the Stuttgart factory for the 739 points won, plus a fixed fee of $556,509 that brings the total fee for Mercedes to $5,490,821.
Ferrari, which owes 2.8 million dollars in expenses to the points, will pay in total more than 3.3 million dollars, and Red Bull almost 2.9. In the two tables on this page there are all the entry fees of the ten teams of the World Formula 1 2020 and, as for Mercedes, the points earned in the last six years with its average cost per point.
Makes for eye-watering totals.
Entry fees for the 10 teams in the 2020 World Championship
|Points||Fees based on points||Total points|
|Mercedes||739||USD 4.934.303||USD 5.490.812|
|Ferrari||504||USD 2.803.752||USD 3.360.261|
|Red Bull||417||USD 2.319.771||USD 2.876.280|
|McLaren||145||USD 806.635||USD 1.363.144|
|Renault||91||USD 506.233||USD 1.062.742|
|Toro Rosso||85||USD 472.855||USD 1.029.364|
|Racing Point||73||USD 406.099||USD 962.608|
|Alfa Romeo||57||USD 317.091||USD 873.600|
|Haas||28||USD 155.764||USD 712.273|
|Williams||1||USD 5.563||USD 562.072|
The cost of Mercedes points 2015-2020
|Points||Fees based on points||Cost per point|
|2015||701||USD 4.341.994||USD 6.194|
|2016||703||USD 4.354.382||USD 6.194|
|2017||765||USD 4.738.410||USD 6.194|
|2018||668||USD 4.137.592||USD 6.194|
|2019||655||USD 4.292.215||USD 6.553|
|2020||739||USD 4.934.303||USD 6.677|
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Sorry. I call BS on this article. Liberty Media has been decreasing the payout since they bought the commercial rights. From 2016 – 2018 payments collectively declined by $50M. What the 2019 payout is won’t be known until year-end. The reason M-B are paying more is that the FIA has raised the point payment fee. Haas will see a huge drop in their fee and Williams will see a small drop. What the teams receive in payment from Liberty Media (FOM) and what they pay the FIA isn’t linked.