Red Bull faces financial setback in F1 as Max Verstappen’s missed championship cost Red Bull millions – Formula One is not only a battle of speed and strategy on the track, it is also a financial competition where every point and position in the Constructors’ Championship has massive financial implications. Despite its dominance in recent years, Red Bull is on the losing end financially after missing out on the Constructors’ Championship for the 2024 season.

As the new season gets underway this Sunday in Melbourne, Australia, Formula One has released its final financial report for 2024, detailing the distribution of prize money between the ten competing teams. The figures show that while some teams have seen a significant increase in revenue, Red Bull has taken a significant hit, making it the biggest financial loser of the year.

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Formula 1’s record-breaking revenues and team prize money distribution

The sport as a whole is thriving financially, with Liberty Media, the commercial rights holder for Formula 1, reporting record revenues of $3.411 billion for the 2024 season. This represents a significant increase on the $3.22 billion recorded in 2023. The profit margin has also increased, with the company reporting a net profit of $492 million.

From this massive income, the ten teams on the grid will receive a combined prize fund of $1.266 billion. However, the distribution of this money is not equal, but depends on a team’s finishing position in the Constructors’ Championship, as well as historical bonuses and other contractual agreements.

While some teams have received substantial financial windfalls, others, including Red Bull, have seen their earnings plummet.

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McLaren and Ferrari among the biggest financial winners

McLaren has emerged as the biggest beneficiary of the 2024 season, thanks to its unexpected triumph in the Constructors’ Championship. The British team, which has been steadily improving in recent years, secured a massive $51 million increase in prize money, taking its total earnings from $117 million in 2023 to $168 million in 2024.

Ferrari also enjoyed a financial boost, receiving an additional $34 million. This increase ensures that Ferrari will remain the highest earning team in F1, with a total payout of $242 million.

This is largely due to the continued benefit of the so-called “history bonus”, which rewards Ferrari for its long presence and success in the sport.

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Winners and losers

Haas, traditionally one of the smaller teams in the financial league table, also made a significant leap in terms of prize money. The American outfit saw their earnings jump from $70 million to $90 million, an increase of $20 million. While this improvement does not place Haas among the top teams financially, it is a welcome boost for a team that has struggled in recent years.

The departure of veteran driver Nico Hulkenberg may have been accompanied by a generous farewell gift, given the improved financial standing.

Other teams to see an increase in prize money include Alpine and Aston Martin, who both received an additional $5 million. Alpine’s prize money now stands at $110 million, while Aston Martin will receive $106 million. Meanwhile, the newly rebranded Racing Bulls (formerly AlphaTauri) saw a smaller increase of $4 million, bringing their total to $84 million.

Sauber, which is about to switch to a full Audi partnership, remains stagnant in terms of prize money. The team will continue to receive $74 million, neither gaining nor losing compared to last year.

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Red Bull’s financial decline – the biggest loser of 2024

While some teams are celebrating financial growth, Red Bull is facing the biggest financial loss of all. The Austrian team, accustomed to dominating both the track and the financial rankings, has taken a massive hit after failing to secure the Constructors’ Championship.

In 2023, Red Bull received a substantial payout of $184 million. However, after finishing lower in the standings in 2024, the team’s earnings have fallen to $152 million, a loss of $32 million. This drop is a direct result of the team’s inability to repeat its Constructors’ title win, as the prize money heavily favours those who finish at the top.

Mercedes are also in a weakened financial position. The Silver Arrows, who have struggled to regain their former dominance, have seen their revenues fall from $179 million in 2023 to $151 million in 2024. This represents a loss of $28 million for the team, highlighting their ongoing challenges both on and off the track.

Williams is the third team to see a reduction in its financial reward. The historic British team, which had shown some promise in recent years, received $97 million in 2023. However, their payout has now fallen to $90 million, a loss of $7 million.

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What this means for Red Bull and the 2025 season

For Red Bull, the financial setback is a rare moment of adversity in an otherwise dominant era. While the team remains in a strong position overall, the $32 million loss is not insignificant. It could impact future development, sponsorship negotiations and even strategic decisions regarding driver contracts and car upgrades.

This drop in profits could also put additional pressure on the team to regain its place at the top in 2025. With McLaren and Ferrari strengthening their positions both financially and competitively, Red Bull will have to work harder than ever to stay ahead.

Moreover, Mercedes’ financial slump raises further questions about the team’s long-term strategy. Having lost nearly $30 million in prize money, Mercedes faces an uphill battle to regain its footing and challenge for championships again.

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A new competitive landscape in F1?

The financial changes for the 2024 season signal a changing landscape in Formula One. McLaren’s rise to the top of the earnings table suggests that the team is now a serious contender for the title. Ferrari’s continued financial dominance, aided by its history bonus, ensures it remains a powerhouse in the sport.

Meanwhile, Red Bull and Mercedes – two teams that have defined the modern era of F1 – are experiencing financial setbacks that could affect their ability to maintain an edge over their rivals. With the sport set to continue its expansion and revenue growth, the 2025 season promises to be even more competitive.

As the teams prepare for the first race of the new season in Melbourne, all eyes will be on Red Bull to see if it can bounce back from this financial loss and regain its dominance on the track. If current trends continue, the battle for the championship and prize money could be more unpredictable than ever.

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MORE F1 NEWS – Verstappen and FIA president ‘strange bedfellows’

Max Verstappen is one of the most straight talking amongst the F1 drivers, he says what he thinks and is a dream for the F1 media. The world champion was heavily criticised for his defensive moves against Lando Norris in Austria last year when the pair collided, yet he defended his driving style as within the rules.

Again at the US Grand Prix, he and Norris found themselves arguing over the same piece of track at the end of the long back straight. Norris in fact overtook the Red Bull; drover, but Max knew the rules stated if he claimed the apex of the corner first, he had the right to use all the track on exit regardless of where Norris’ McLaren was positioned.

In the run up to the 2024 Singapore Grand Prix, FIA president Mohammed Ben Sulayem had called on his race stewards to clamp down on bad language used by the drivers, suggesting they were more like rappers than professionals sportsmen. At the opening FIA press conference of the weekend on Thursday, Verstappen described how his car had felt at the previous race weekend in Baku as follows: “As soon as I went into qualifying, I knew the car was fucked.” READ MORE ON THIS STORY