How Much Do F1 Drivers Recieve in Prize Money for Winning the World Championship Title?

After a 7-year Mercedes-dominant phase, 2021 managed to present the fans with a physically and mentally draining season. Lewis Hamilton and Max Verstappen were at each other’s throats since the very first F1 race in Bahrain.

And why wouldn’t they be, considering the prize at stake is the precious tag of ‘Formula 1 world champion’. Not many drivers have been as lucky to battle for the title with only around 1/20th of them being able to achieve this mountainous feat over the years.

Hence, one might wonder, will the drivers receive any kind of prize money for lifting the world championship trophy? Well, the answer is rather complicated.

Do F1 drivers receive bonus for winning the title?

Let’s start from scratch. A driver’s world champion will never receive any kind of prize money directly from Formula 1. Instead, the sport mostly deals with the constructors; The yearly price money payout of 2020 was approximately around $913 million, according to reports.

The center prize money is quite similar to 47.5% of F1’s hidden benefits.

Formula One F1- Saudi Arabian Grand Prix – Jeddah Corniche Circuit, Jeddah, Saudi Arabia – December 4, 2021 General view as the cars exit the pit lane during qualifying Pool via REUTERS/Giuseppe Cacace

F1 then would split this money into two parts; 23.7% equally to the teams finishing in the top 10, another 23.7% according to how the teams finished in the standings. Meaning, Mercedes would receive the highest cash prize if they manage to secure the top spot while Haas would receive the lowest check.

The remaining 2.5% would go to Ferrari amidst their special contract with F1.

Who offers drivers bonuses?

The teams hold the trigger in whether a driver receives a bonus or not. Let’s consider drivers like Nikita Mazepin and Mick Schumacher, who have almost nil chances of winning the title. Hence, Haas would set reasonable and rather achievable targets in their respective contracts for the duo to earn bonuses apart from the yearly salary.

Hence, in the case of 2021 title contenders, it’s Hamilton and Verstappen. It is quite certain that both would have bonuses for winning the championship this season. The bonus money doesn’t have to be equal amongst all teams and varies according to the interest of the individual team or the driver.

Formula One F1 – Qatar Grand Prix – Losail International Circuit, Lusail, Qatar – November 21, 2021 Mercedes’ Lewis Hamilton leads at the start of the race REUTERS/Thaier Al-Sudani

Overall, the answer is ‘Yes’. F1 drivers do have the option of earning bonuses for winning titles. But, it ultimately depends on their contractual agreement with their teams.

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