F1’s flawed financial model explained finance explained

by adminhuahinsunvilla3sd



Formula 1 has revealed its blueprint for major changes in 2021, but those well-intentioned plans could all fall flat if it fails to fix the way it distributes prize money among the teams. The current contracts between F1 and the teams were agreed with Bernie Ecclestone, at a time when he needed to do whatever it took to get long-term commitments from the main players. The result was a disproportionate amount of money being paid out to the most important teams, which has created an imbalance that now plays out on the track. This video explains how the current system works, and it’s pretty clear to see why it needs to change .

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F1’s flawed financial model explained

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F1’s flawed financial model explained
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48 comments

Jay B 22/02/2022 - 5:29 Chiều

Interesting that extra Ferrari payment. Because I remember several years ago that Ferrari also was able to negotiate the ability to bring 10% more supplies to fly away races than any other team. Ferrari has always held a special place in F1.

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ISing2Liv1142 22/02/2022 - 5:29 Chiều

I didn’t know Ferrari got a payment just for existing for so long!!! Isn’t that even more reason NOT to get the payout—you’ve been here long enough, so you should have this whole thing figured out

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AugmentedGravity 22/02/2022 - 5:29 Chiều

Should be the other way round almost?

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David Ramiro 22/02/2022 - 5:29 Chiều

It's unbelievable they make us believe that they're trying to balance things out by limiting testing or simulator hours and then all this unfair distribution is in place.

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Emperor Sascharoni 22/02/2022 - 5:29 Chiều

Honestly I dont think that Ferrari or Williams really are nessesary to have in F1. The main thing with those is the currently exsiting fans, but as time progresses they will be less and less important to the sport and soon you wont need to pay ferrari just because you are scared they might leave. Atm mercedes, redbull and mclaren make up the majority of the new fans.

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Frank The Tank 22/02/2022 - 5:29 Chiều

Yeah yeah yeah but how much????

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grxengine 22/02/2022 - 5:29 Chiều

Thank God lawyers don’t race the cars too. We’d have no idea who won.

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John Rupesh 22/02/2022 - 5:29 Chiều

Only two columns are good.. the first and the second. Rest is pure bullshit. Ferrari is most bullcrap team in the sport right now.. Thats why I hate them.

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John Rupesh 22/02/2022 - 5:29 Chiều

Fuck everything and just pay the teams by their constructer standing.

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Light Weight 22/02/2022 - 5:29 Chiều

Ferrari has the highest fund but still can't give vettel a pure performanced competitive car.

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katalysis 22/02/2022 - 5:29 Chiều

So F1 is just a nepotistic, culturally retarded anti-sport with lipstick.

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Lugatti Nine 22/02/2022 - 5:29 Chiều

Well this is just ridiculous – to sum things up the large team making the most credible threats to leave gets the most „insert bullshit payment name here“ money

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Ben Bunch 22/02/2022 - 5:29 Chiều

Bernie Ecclestone was a moron. The sport is much better off to be out from under him. What a monumental…

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stevejh69 22/02/2022 - 5:29 Chiều

I was a Ferrari fan for decades. Then you see them cheat and the corruption and how can anyone support the tifosi after seeing this.

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Vince Cannava II 22/02/2022 - 5:29 Chiều

Ferrari is fat and we'll see if they're still lazy.

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Bruce Moyers 22/02/2022 - 5:29 Chiều

Sounds like they have the same integrity as the Olympic Committee.

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bolo kefe 22/02/2022 - 5:29 Chiều

ferrari sucks they cheat and steal and they still lose

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Mike Suarez 22/02/2022 - 5:29 Chiều

The fact that Ferrari earns so MUCH and still made a car slower than the fricking 2016 mclaren Honda car just shows you how much they have changed from champions to laughingstock

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alita battle angel 22/02/2022 - 5:29 Chiều

Simple answer… They eat the money

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David Vesseur 22/02/2022 - 5:29 Chiều

This is corrupt AF

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JhonDiick 420 22/02/2022 - 5:29 Chiều

no wonder Mercedes and redbull takes all that money , all dicksuckers on there , its about the money not about the passion to drive.. like every sport , Look at MMA all bout the $$$$$$$

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ImYou 22/02/2022 - 5:29 Chiều

HAAS??? Last time I checked that was a vacuum cleaner company

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BrocaRaton 22/02/2022 - 5:29 Chiều

This makes no sense. How about just reduce the entry fee.

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macgot 22/02/2022 - 5:29 Chiều

For every year that Ferrari fails to score at least 2 wins, the extra money should be distributed to the other teams as a penalty for failing our "legacy".

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Aaa Bbb 22/02/2022 - 5:29 Chiều

To whom keep saying it's not fair that Ferrari get a bonus: ferrari was there since the dawn of f1. Ferrari is the link to f1 heritage, if you need a benchmark you have to look for Ferrari. That's how you can compare nowdays f1 things to the past,by looking at ferrari history. That's an hard committment (they compet even in black financial times). That's why they pay ferrari so much, they're the past,the present and the future of f1

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Joe Cowan 22/02/2022 - 5:29 Chiều

The whole system is stupid, why don't they divide the spoils evenly between all the teams and you'll get far more competitive results all round

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Hanz Heinrich 22/02/2022 - 5:29 Chiều

What are the 2 different Red Bull Teams supposed to mean, why are there two?

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MeisterAnker 22/02/2022 - 5:29 Chiều

F1 DoNt NeEd FeRrArI

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saelaird 22/02/2022 - 5:29 Chiều

I fully agree with every element of the current funding arrangements.

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Reju Subash 22/02/2022 - 5:29 Chiều

How is this competitive? The bigger teams keeps on getting better and the lower teams have no scope for improvement. The gap between the top and bottom teams gets bigger

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Susan Henderson 22/02/2022 - 5:29 Chiều

Formula 1 is dying, it needs to return to its roots,

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atan_ jojes 22/02/2022 - 5:29 Chiều

guys Why lamborghinis not joining F1??

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flint 22/02/2022 - 5:29 Chiều

So Ferrari gets by far the most money and sometimes even fights against teams that get the least of all. Good Job there.

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L Pasca 22/02/2022 - 5:29 Chiều

This video is downright misleading. It does not talk about the money that goes to Liberty (and CVC before), nor explain why it goes there in the first place. it does not talk about the corrupt collusion between Ecclestone and Moseley, and how the rights to the F1 brand were sold first, and for a unacceptably low figure second.

The point is that these payouts to these teams are only proportionate to the share of the brand these teams represent. It has very little to do with performance and more to do with the number of fans and market share each team represents.

They are simply and indication of how much Liberty Media is willing to pay the teams to stop them from leaving, and therefore devaluating the brand and reducing the money that goes into Liberty Media's pockets.

Why don't we start from that? Because the British press is colluded too? Because it is still trying to deal with the shame that Ecclestone and Mosely brought to the sport? The duo made Balestre look like a saint.

Ready to have a debate if anyone has the balls.

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Giuseppe Moschella 22/02/2022 - 5:29 Chiều

The dodgy engine deal cut between merc and bernie to stop merc walking away is what has led to the least competitive period in the history of the sport.
F1 hangs by a thread. Ferrari walking away would be the end.

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kederis 22/02/2022 - 5:29 Chiều

What is this nonsense

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salih aktürk 22/02/2022 - 5:29 Chiều

They need to reverse pay teams. Worst team should take the most money to invest in their car and be competitive. That would make f1 great again

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Zidi Engia 22/02/2022 - 5:29 Chiều

giving the most to the already best performing teams has always lead to miserable competition. in any sport.

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shooter7a 22/02/2022 - 5:29 Chiều

The problem with this is that MONEY is what makes you go fast. It is not really like say…pure athletics. Paying Lebron James more $ does not make him run faster, jump higher, shoot better. But in motorsports, this is exactly what money does. Money pays for Engineering, Simulation and testing…which directly translates to speed on the track. If you want to manage the overall product, and have competitive racing, you have to flatten the payouts.

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Carsideration 22/02/2022 - 5:29 Chiều

This is such a joke. Level the playing field and bring back the V8s!

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Giant Leap 22/02/2022 - 5:29 Chiều

F1 is the last bastion of the Roman Empire…and Brutus is an honorable man!

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Gloves 22/02/2022 - 5:29 Chiều

Came back here after McLaren placed 3rd in the Constructor’s Championship 🙂

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peter moubarak 22/02/2022 - 5:29 Chiều

All this money and ferrari still built a tractor

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Shantanu 22/02/2022 - 5:29 Chiều

But How does Formula 1 group get this money from?

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R O S E 22/02/2022 - 5:29 Chiều

This is why i watch Motogp more than F1 because motogp was more on the rider than the motorcycle than F1 that depends on the car they drive

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Seve Garza 22/02/2022 - 5:29 Chiều

The real problem is that F1 is shelling out EXTRA CASH to try to keep teams long term. Right now, the power balance is in the hands of the race teams. F1 needs to restructure themselves to make them much more approachable and attractive to new teams so that there is a very long list of teams begging to be a part of F1. That way if a team does not want to be a part of F1 then fine, there are several other teams that would bid for their spot. Honestly, Ferrari will be a F1 participant for as long as they can even if it loses them money. There is no need to pay money for long contracts.

Also, it would help if teams could actually make a profit from chasing the constructor's championship. Mercedes, Ferrari, and RedBull lose millions every year chasing the constructor’s championship. however, they just write if off as advertising expense. The other teams either lose money, break even, or maybe barley make a profit. Right now there is no way to win the constructors championship AND make money directly from F1 racing. If the costs of winning a constructor’s championship were lower than the F1 payouts, there would be a lot of teams wanting to be a part of F1.

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b9y 22/02/2022 - 5:29 Chiều

It's shit that a race track needs to not only pay to host F1, but barely breaks even on the events. Really does take the piss. F1 for many years was about privateers, cash-strapped boys with dreams. I know it's not been like that for a long time, I know F1 isn't the place to do that now, but my god I wish they brought some of that back. And I want to see more cars on the grid.

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