How do Formula 1 Teams Make Money?
Vložit
- čas přidán 13. 05. 2024
- Money rules Formula 1. And the teams must need A LOT of it to have success. But how do Formula 1 teams make money? And do they even make a profit at all? And is the whole financial format of F1 going to change with the budget cap? Stick around as I dive into all the various costs and incomes of an F1 team and look at whether Formula 1 teams actually make money...
0:00 Money in Formula 1
2:11 Costs of an F1 team
3:50 Revenues of an F1 team
8:10 How much did Mercedes make in 2019?
8:55 How does each team stack up?
9:48 The effect of the budget cap
10:45 Conclusion
_________________________________________
FOLLOW OUR SOCIAL CHANNELS:
Website:
theracingpilot.com
Instagram: / theracingpilot
Twitter: / theracingpilot
Pinterest: www.pinterest.co.uk/the_racin...
DRIVETRIBE: drivetribe.com/u/K0N1iR8OEtTL...
Facebook: / theracingpilot
_________________________________________
MUSIC INFO
Finally by Loxbeats / loxbeats
Creative Commons - Attribution 3.0 Unported - CC BY 3.0
Free Download: bit.ly/FinallyLoxbeats
Music promoted by Audio Library • Finally - Loxbeats (No...
Lovely by Amine Maxwell / aminemaxwell
Creative Commons - Attribution 3.0 Unported - CC BY 3.0
Free Download / Stream: bit.ly/lovely-amine-maxwell
Music promoted by Audio Library • Lovely - Amine Maxwell...
_________________________________________
Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. There are certain scenes from the Formula 1 calendar where race footage is used. All rights are property of FOM. Other photos and news elements are used solely for the purpose of assisting the original content in becoming more engaging or informative. This video is not intended to cause offence and is solely for entertainment purposes. Using this video without giving credit to the original source is an offence.
#Money #Formula1 #F1 - Sport
you get on average 15-20 sponsors:
Haas 2021: *crying cat thumbs up*
😂😂😂
*cries in nikita mazepin
well haas surely has a huge sponsors judging from theirblivery
Daddy maze pins company will be giving quite a large amount of money
Sponsored by Russia
There has been a saying i remember from my childhood some 60 years ago. " How do you make a small fortune racing? Answer: Start with a large fortune.
Exactly right, that's the only way
It's the same with every racing, at all levels. Even the smallest category of racing on 2 wheels can get very expensive for a mere mortal. Such a shame, really.
Makes Hamilton’s achievements all the more greater
Íhhhhg
@@jimmyfranco43 good one
I think Ferrari spends their money on finding new ways to mess up.
😂😂
Italian engineering much? 😁
Hahaha
watch how quickly people like you jump off the mercedes bandwagon and join red bull or others when they start to win races. Or better yet, why dont people like you do some proper research and discuss why the FIA has allowed Mercedes to continue their development of their engine over 7 years ago when the same engine was used in another motoring championship? Giving Mercedes the edge over any other F1 team. Oh the politics of it all
@@torquethetalk We all know that the FIA authority figures are just supremely intimidated by Toto looming over them, glaring and then growling, "Fuck off." Obviously nothing shady to see there.
I read the title as ‘How F1 fans make money’ that’s how broke I am.
😂😂 I feel you
Judith - Motorsport is an Insurance Business... If you make it your business it will bring you business #RacingPilot
And where o where do they decide ticket prices. Thats if we are ever allowed back into the arena.
broke enough to have internet.
Why waste your time with losers investors when you can earn up too $1200 with only $100 minimum investment
Ask me how to get started
Mercedes: Spends over $145 million
FiA: Fines Mercedes for spending to much
Mercedes: Pays the fine and continues to over budget
FiA: *suprised pikachu*
I assume the punishment will be more than a fine...
Actually FIA be like verbal warning
That’s essentially what the MLB has done with their “luxury tax.” Probably all that will come out of this.
I believe you forgot the season dsq
I think FiA then will come to take to themselves the money, that Mercedes spent to over budget to make their car better and faster to have easier chance to win again their boring 1 and 2.
"if a team or driver has a terrible reputation, sponsors won't go near them."
*Shows Mazepin on screen*
Perfect XD
Of course 😂😂
you misspelled mazespin
he's the sponsor's son tho
Yet Grossjon the french ididot stays soooooo long
Hehe. Uralkali Likes Mazespin xD
Honestly I’m really doubting if Mercedes can maintain their dominance with only $145m , it’s been so long since they haven’t had a near unlimited budget
Exactly, it's going to be incredible if they do...
i think they can
They'd still be on top but the gap between teams will be much closer like the 80s and 90s.
They and Ferrari (in particular) could be in big trouble. The gap between what they spend currently and what they will have to spend from 2022 is too large. Unless the vast majority of what they've been spending on has not been R&D or Engine related which I highly doubt. Its the last great hope for levelling the playing field.
@@redherring4119 they said their engine is. Much better than before but time will tell
Most of teams don't care if they make loss,because their biggest gain is making the brand stronger to the consumer, very classic indirect profit 👍
Exactly 👍
No one is buying a car due to formula one
@@lazthegreat10I do
@@lazthegreat10he’s saying brand image, like their brand is more recognized
@@lazthegreat10 speak for yourself.
"every team has around 15 to 20 sponsors", Haas: are you sure about that?
😂😂
🤣🤣
Steiner: "f@#king hell"
6:23 on average 15
Haas2021 :pain
😬😬😬
How many do they have ?
Normal F1 teams: sponsors and entering races
Racing point: Daddy’s cash will help
Pretty much 😂
Go look at Haas, they have basically no sponsors, Aston Martin has plenty
Nothing wrong with that.
Haas is going the same route with their new venture. One need only look at the one Haas driver who certainly hasn't merited his 2021 seat.
Shitty small man syndrome comment.
How is it an insult that someone’s parents are better than yours. Do some research, he’s clearly a talented young driver as well.
The FIA is so concerned with bringing about greater parity through spending caps and technical limitations. However those FOM payments look like the most egregious factor in ensuring that parity is not possible.
They are changing the model of the prize money slightly too 👍
I was thinking the same thing when watching it. If the lowest teams gets a substantial amount lower to invest into R&D, how are they supposed to catch up?
Haas: we dont do that here
😂😂😂
That Aston Livery looks Sick 🔥
I really does 😁
Even alpine livery looks good.
Looks like garbage
Indeed it does
@@drewp.weiner2473 lmao ur daft
0:00 flat earthers: money is a paid actor.
Yes 😂😂
Pay money to money? Yep, going round.
Earth is round.
The things Force India/Racing Point/Aston Martin have been able to do with a comparatively small budget is incredible
It really is, they are so efficient as a team generally
Aston Martin don't know what R&D is. They just copy what Mercedes does
Depends what your definition of a small budget is.
@@kyte2000 well you know WHy china is so successful?!
The budget cap is one of the good move by FIA to have a fair competition
I really hope it works in the long run 🙌
@@TheRacingPilot lmao
Great breakdown of the financial aspect of F1. I really enjoyed the content here. A lot of what makes F1 interesting for me is the things going on behind the scenes as well as the actual racing. Keep it up!
Thanks Dyl! Really appreciate it 🙌🙌
Same here...love the 2sec Pits and total respect to the logistics teams ✅
I was wondering about this, then it popped up in my suggestions, thanks man, great video!
Well thanks for watching Matthew 👍
When you look at Alpha Tauri, you also have to consider that main engine R&D and the costs associated with it is also shared with Red Bull cause of the Honda engine and Alpha’s status as a Red Bull junior team
Correct, and that would be involved in the production costs 👍
I'm Italian and this video came out on my home page by chance. Mamma mia how much quality is this video, I don't believe you have so few subscribers, keep it up and you will grow a lot. You are very good, a greeting from Italy (and always forza Ferrari)💪💪🔝
Thanks Edoardo! Really appreciate it 🙌
yeah. I agree. Really high-quality video. Well done!! I have just subscribed.
Ciao. Amico. Rome ?
@@aaryanrahman1833 No, Sanremo, a little town near France
The problem is when the entry level is to expensive the talent pool becomes smaller. It becomes "we are not competing against the best in the world but the best who could afford it." I am of course referring to drivers. How can anyone claim to be the best at something if the sport they are in has a lower and lower talent pool every year.
Agreed, grass roots needs to be more accessible
Man I really respect you for responding to almost all comments
Of course! It's the least I can do
Been watching F1 since the mid 80s. I think your videos are bloody brilliant. This was super interesting and well put together. Keep up the good work mate 💪
Thanks Johnny! Really appreciate it 🙌
Basically like NASCAR. “Win on Sunday, sell on Monday.” It’s gonna be hard to top how exciting this year has been in F1, but I’m looking forward to the new regs. Plus nascar is going to new composite bodies to lower cost and even competition. These are all great things for race fans. Super video, thanks!
Absolutely, thanks for watching!
This video is well-prepared with editing, finding excellent visual content and statistics. Thank you for your work. Love that and hope for the more updated version.:))
Thanks so much! I really appreciate you saying that 🙌
This is amazing information. I've been following F1 for 40 years and this is the first time I've heard an explanation of how this works. Great job. Thank you.
Brilliant! Thanks for watching 👍
Love it. Great breakdown. I always got bored watching the actual race, but these kind of facts make things much more interesting.
Glad to make it more interesting for you! 👍
Amazing vid as always RP. I'm soo happy you decided not to take the "easy" path and just talk about current f1 topics that get the most views but instead you provide original well thought content. You're my fave f1 ytber, keep it up!
Thanks Emes! I find this a really interesting topic so I would have thought there's at least some put there that think the same! 😂👍
So informative and clearly explained - thanks!
Thanks for watching!!
Absolutely love your videos, very informative. Keep it going, thanks.
Thanks for watching Jason! 🙌
Thank you for this. It is great to know. I've always focused on the sport.
Thanks for watching Mandla 👍
This channel is going to explode one day..... Proud to be one of the earliest
Thanks! I hope so 🙌
Good job, pretty good video! It would be really interesting to have a similar one analyzing how FOM makes money as well and what are the figures involved.
Could definitely do that in the future! 👍
Very nicely done video Mate, thank you very much for the insight. Keep doing good work ! 👍💪
Thanks mate 🙌
Banger video mate 🔥
Thank you. I watched it this August 2022 an I loved it. I'm looking to understand all the technicalities in F1 like I do with football and other sports that are common here in Africa.
Awesome! I've got many more videos that are similar on my channel 👍
Thank you for your work! Very informative and enjoyable to watch. I love Ferrari but I won't be surprised if they eventually cheat the budget cap too lol
Lol yeh fair enough 😂😂
Thank you so much.I've learned a lot from this amazing well made video.
Great, thanks for watching!
Nicely made! Would like to see some more of these kind of videos! Kudos!
Thanks mate! Loads more on my channel to check out!
Great video, there are a few other revenue streams in there I reckon. Merchandise sales for popular teams will be significant. Licensing their brand to model company's and top companies etc will also bring addition revenue.
Yes there are many more but I wanted to be concise 👍
What a well put together video, thank you for simplifying things in an easy to digest format. Top-level production quality as well.
Thanks a lot! Really appreciate it 🙌
I have always wondered! That was super video. Thanks mate!
Thanks for watching 👍
Thank you for breaking down this interesting topic)))
Thanks for watching 👍
Great explanation, would love to see a breakdown of each spending/revenue category. Keep up the good work :)
Thanks! Really appreciate it 🙌
This is really a great video. Thanks for explaining the business side of F1.
But I think u have missed on the profits made by Mercedes, Ferrari on engine and gearbox supplies.
Thats included in the 'sponsors and tech partners' section 👍
loved it mate , keep it going. that was very interesting to watch
Thanks mate 🙌
Very well put together. Keep up the great work The Racing Pilot
Thanks Sam! 🙌
Hi RP, I'm surprised the Merchandise side wasn't mentioned as this is how teams make money as well ( and this side has been hit hard by the pandemic)
Well purely because it's such a small amount of revenue compared to the other factors 👍
@@TheRacingPilot is it really that small though? F1 and it's teams sell a huge amount of Merch at very large margins.
Care to speculate on numbers?
@@TheRacingPilot Fez sold $1.5 billion in global merch sales in 2019 record sales, so they would have received a fair payment from that alone, plus their $245million sponsorship deals then prize money so I'm sure they never broke even lol
@@eck0hcobra15 It should not be that big because the teams don't make the shirts themselves.
Repent for your sins and have faith in Jesus and you shall have eternal life in paradise
Very well done and professionally made video mate! I'm very proud of your work, and I know the hard work will pay off. Remember me when you get famous please!😊
Thanks so much Vinayak! Really appreciate it mate 🙌
this is very helpful!!! thank you so much
Thanks for watching 🙌
Wonderful video. Thank you!
Great video ! Loved how you broke everything down in a simple way.
Just have to point out that nearly every single report online says Mercedes made a profit in 2019.
Keep up the great Vids !!
Thanks for watching Rizwan! Yeh I saw those reports too but I decided to use the figures from racefans.com which showed a loss 🤷♂️
@@TheRacingPilot oh that's cool then. I trust racefans know what they saying because it's an awesome site. Keep up the great content. Hope to see more amazing stuff now F1 is about to kick off again ! Have a great weekend 👍
I think f1 might be the hardest sport to compete as an owner. I mean, there are some team in the past that join but ultimately fail. I wonder if teams such as monaco or panthera that wanted to join F1, how long does it take to reach the level of top teams or midfield teams
Absolutely, the sheer millions even just to join the sport is massive. But I guess that's the point, they don't want loads of teams 👍
ask Haas.
Love the animation and pictures transitions your vids have... Loads of love, keep up the good work homie...
Thanks so much Sharvil! Really appreciate it 🙌
That is one the best videos i have ever watched. Splendid!
Thanks a lot mate! 🙌
The last point about the translation between F1 and road cars was spot on. You can see this in the priorities of certain car markets relative to F1 interest. In the UK, France, Germany, and Italy (and sometimes Japan), the consumer car market for performance cars mainly revolves around the engineering of the car (balance, handling, 0-60). In the US, the biggest performance car consumer market (and generally, the car market) are more focused on safety features, longevity of the engine, fancy interior, idiotic design that was put through a wind tunnel upside down, and embarrassing turbo noises.
F1 interest in the US must be top priority for the FIA if the future of performance cars is to be secure (look at how BMW has already cracked under US consumer demands to embarrassing enormous grill designs).
Exactly 🙌🙌
Yep I've been saving up to go buy a red bull car
American car design has always been atrocious, I would be embarrassed to own one. Bit like their Indycar series
Maybe short five minute videos expanding on each of the revenue streams
Yeh I could do 👍
Really good video - and nice summary of the costs explained.
Thanks Zak! Appreciate it 🙌
Very informative! Thank you for the simple and concise explanation! #F12022 can’t wait
Me too! Bring it on!
Love these financial videos, also probably makes you more money in adsense hahaha keep em coming
Possibly 👀
This was really informative. Thank you!
Thanks for watching!
Thx bro for this video! MEGA BIG LIKE!!!
Awesome! Thanks for watching 👍
As a marketing professional, I absolutely LOVE this video! Learnt so much from it never knew so many teams break-even and didn't have heavy losses compared to most major football clubs.
Thanks Jason! Glad to get feedback from an actual expert, and yeh I learnt a few things too!
You're referring to European foottball? I assure you no Anerican NFL team runs much risk of losing money
I thought Man U were owned by Americans
This video was so interesting! It’s crazy the money they’re playing with, unreal amount. I still think the long standing payment is way too high and so irrelevant!
It really is mad how much money these teams have! Thanks Keira 🙌
irrelevant? no ferrari means no f1. it is simple as that.
@@gokhansenaolivia no one said Ferrari shouldn’t be here, Ferrari don’t deserve millions of pounds more.
It is not an irrelevant payment if it is for everyone. Total pot divided by the total number of seasons the teams are competing in f1 and then distribute these parts among the teams equal to the number of seasons they have been competing.
That way you value your heritage and benchmark and support future loyalty. In that scenario Ferrari would still take the bulk of the money, but on merit. Now it is very unfair.
Ferrari dislikes this comment.
Amazing video. Just what I was looking for
Great thanks for watching!
That was so helpful... Thanks man.
Thanks for watching 🙌
Yeap like my late dad said, F1 is essentially a real-life advertisement for most teams to intice viewers to buy their car brands. It's difficult to calculate that translation process.
Also, the technologies innovated in racing eventually make it to mainstream car engineering for various benefits.
Absolutely, your dad was a smart man!
I mean you can't buy a red bull or haas
with the budget cap, isn’t there a clause that people such as lewis aren’t calculated? something about top personnel excluded? i think remember that from a broadcast
Yep. Driver and director salaries aren't included 👍
It's drivers plus to 5 or 6 other top salaries. They can spend through the roof on those.
One thing I'd like to see a video on is the discussion that lead to the absolutely bizarre and unprecedented "historis committment" payment to Ferrari. The company that has gained the most from F1, which is most tied to the series, whoe entire business model is linked to winning races, needs a massive bribe, equivalent to more than the Constructors championship pays? What pressure did the prancing stallion apply to get that awarded?
Loved the video! I’ve actually wondered for a long time! Thanks!
Thanks for watching! 🙌
Really cool vid, just started watching this year and vids like this are quite helpful.
Awesome! Welcome to the sport 🙌
It always puzzled me how teams made so much money from such a "small" fan base (compared to other major sports). thanks for the video, really clear
Well Formula 1 is one of most viewed sports in the world so I reckon it makes sense
@@TheRacingPilot soccer is the most watched and most popular sport in the world
@@bumerstudent He said "one of"
If you Repent for your sins and have faith in Jesus and you shall have eternal life and joy in heaven ✨️ 😊😮
Bruh, F1 is definitely pay to win too. The big boy (Mercedes) budget for 2019 or 2020 was around 400 millions. And Haas have around 100 mechanics and engineers while Merc have nearly 300.
Correct, it's pay to play then also pay to win 👍
All team sports are usually pay to win..
Lol, thats like saying teams like utd, arsenal, chelsea have more scouts, better facilities, better player mgmt than a derby county or bolton etc. Successful teams attract that like with anything in life. Ofcouse american sports are an exception coz of cap but even there, players keep forcing moves all the time to play for glamour frachises in big cities. So its never really an even field
Thanks for the upload mate!
Thanks for watching David! 👍
Amazing production quality, went to check how many subs you had and expected there to be at least 1 million.
I wish! I'm a fairly new channel 👍
Huge fan of Ferrari. Saw Shell on their car, been filling my tank and change oil with Shell. Saw Kaspersky, easy choice for my PC Antivirus. Saw Lenovo when in need of new laptop, instant pick. Schumi's Ferrari was Bridgestone loyalist, have to give my car the same tyres as my idol.
Exactly! You are a perfect example 😂
i love how lewis's paycheck is in its own category
Haha it is quite large
Since all drivers pay is exempt from the budgets, that where it belongs. A bizarre decision, by presumably brought in under pressure from the drivers themselves
This was just a first class video, together with what makes F1 so expensive. Just loved it :)
Thanks so much! 🙌
I always love watching your videos, keep it up!!!
Thanks! Really appreciate it 👍
Great video. Although I have a doubt as to how you included "Investments" as revenue. Don't the investors expect money in return which in turn will reduce the profit? Investments can be separate category but I am not sure if they can be included as revenue?
You could see investment similar to sponsorships. The Mercedes company sponsors the Mercedes race team 👍
Who do you think will prevail McLaren Riccardo or Aston Seb?
I think Ricciardo will do better at McLaren but it will be interesting either way
Loved this video. Great job. Liked iy and subscribed too. Look forward to future ones.
Thanks for watching! 🙌
Thanks for the video it was an opener
Thanks for watching Joanitha 👍
What about the audience who paid their money to come and watch race in terms of revenue?
That will go to the circuits and Formula 1 itself 👍
ur a ledgend mate
Thanks mate 😂
Earned a like and a subscriber. Thanks for the info mate.
Awesome! Thanks mate 👍
Perfect well explained... In layman terms... Good on you mate
Thanks a lot! Really appreciate it 🙌
I'd imagine one of the loopholes the teams are going to use is to have the sponsor contracts split so that they'll partially sponsor the drivers directly allowing them to cut costs on driver salaries without touching the drivers earnings.
Well there are no rules on how much teams earn, it's a cap on how much they spend 👍
There would be no reason to do that. Since drivers salaries are on the dozen or so exemptions from the budget, they have no really good reason to artificially low them. In fact, I won't be surprised to see, the high priced teams try something like(depending on how tightly written are the rules) employ their drivers as partners. Say" I'll pay you 100 million to drive, but you personally have to fund design testing in the wind tunnels. You get $100 million if you show up with a fully compliant rolling chassis. Or with a complete power unit (for those teams buying in engines) If there is one thing F1 teams are all experts at, it's getting around inconvenient rules.
By selling $50 hats and $200 hoodies
😂😂😂😂😂
Hahaha that aswell
You really did a good job
On this one
My first time watching
👌🏾👌🏾👌🏾
Thanks! 👍
Always wondered about the Business Plan ... now we have a basic idea - Thanks
You're welcome!
on average an f1 team has around 15 sponsors
haas: *we don’t do that here*
😂😂
Like the late Nikki Lauda said, "It's amazing with all these fecilities, you make a piece of crap like this." Considering the amount of money Ferrari pour into one season & get such terrible results, they are the worse team of all. What's even more disgusting is they spend more Mercedes, who are dominating F1 since 2014, & finish an avarage place of P4 in the championship. They can give all their money to little teams like Haas & Williams & better leave the sport of God sake.
Anyway, great content mate, superb video. You rock more & more with each new video. Cheers!
Thanks Arun! Yeh the whole Ferrari budget thing is just so wrong if you ask me...
@@TheRacingPilot yep, the feeling's mutual. 😌😌
You can't say that! It'sa Ferrari!
@@eMeSCZ 😂😂
@@eMeSCZ Its a shitbox
Great video, subscribing and looking forward to more of them
Thanks! 👍
Awesome , great content, thanks for the insight
Thanks for watching!
6:23 on average 15 sponsers
Haas in 2021 : alone again! Naturally
Great video yet again 👍
Yeh I think Haas have 5 😂
@@TheRacingPilot yep
Sadness everywhere😬
Says "dollars" and £ on the screen 🤦♂️
Sorry, my mistake 😬🙋♂️
Huh, who knew. Very interesting. I always wondered about the financial structure of F1 and how the teams made money. Thanx for that! I'm subscribed.
Thanks for watching Rob! Glad you enjoyed 👍
I never knew there was this much going on behind the sences.
Interesting
It really is, Formula 1 is a business after all!
9:06 doesn’t williams make a +25m profit?
Nope, 100 mil - 125 mil equals -25 mil 👍