F1 teams receive contractual payments from Formula 1’s Prize Fund, funded under the 2026–2030 Concorde Agreement by reference to a fixed percentage of a defined adjusted operating-profit measure. Ferrari also receives a heritage-related share; most of the result-based allocation depends on the previous season’s Constructors’ Championship. Teams earn separate income from their own sponsors and partners, so Formula 1’s total revenue is not the same as the money paid to teams.
How do F1 teams earn prize money?
The Prize Fund is a contractual payment pool distributed by Formula 1 to teams under the Concorde Agreement. It is not the same thing as Formula 1’s gross revenue, and it is not the same as sponsorship money a team negotiates for itself.
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Under the current agreement, which applies from 2026 through 2030, the fund is tied to a fixed percentage of “Prize Fund Adjusted EBIT.” Liberty Media’s 2025 annual filing describes this as an operating-profit measure adjusted to exclude certain specific, largely non-cash items. In other words, the stated basis is adjusted operating profit, not simply a percentage of ticket sales, television revenue, or total Formula 1 revenue.
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This distinction matters because revenue and operating profit measure different things. Formula 1 can generate revenue from broadcasting, race promotion, and sponsorship, but the Prize Fund basis identified in the filing is an adjusted profit measure. The amount is not obtained by taking a known share of gross revenue and dividing it among teams. The contractual definition and the undisclosed percentage both affect the calculation.
How is F1 prize money distributed?
Championship results drive most of the result-based share
After Ferrari’s heritage-related share, the remaining payments are allocated according to teams’ prior Constructors’ Championship results. A significant majority of this result-linked allocation is based on the previous season’s championship position. The precise weighting and complete payment table are not disclosed in the public filing.
This means the standings matter, but the public information does not support a simple, official table that assigns a known amount to each finishing position. Nor does it establish that the Constructors’ champion receives a particular fixed sum or that every place in the standings is worth a publicly known amount. Media estimates and reported leaks should not be presented as official team payouts.
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Ferrari has a separate heritage-related component
Ferrari receives a share in recognition of its heritage. This is distinct from the portion allocated on the basis of prior championship results. The filing identifies the heritage component but does not disclose its percentage or a full team-by-team breakdown.
That makes heritage and performance two different factors to describe, rather than two interchangeable ways of ranking teams. Ferrari’s heritage-related share is not a public bonus amount readers can calculate, and the filing does not provide enough detail to compare it precisely with the result-based payments. The public description also does not establish that the heritage share replaces Ferrari’s result-based entitlement.
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The agreement sets the framework through 2030
The ninth Concorde Agreement includes a Commercial Agreement between Formula 1 and each team and a Governance Agreement among Formula 1, the FIA, and the teams. The FIA announced that all 11 teams, including incoming Cadillac, are covered through 2030. FIA President Mohammed Ben Sulayem described the agreement as securing the championship’s long-term future.
The distinction between the commercial and governance agreements matters: the payment rules belong to the commercial framework, while governance concerns how the championship is run. The public announcement confirms the agreement’s scope and term; it does not provide the confidential team-payment schedule.
The agreement is therefore the framework for the period, not a public price list. A five-year term tells readers how long the current arrangements apply; it does not reveal the precise percentage, how every component is weighted, or the sums each team will receive in a given year.
Where Formula 1’s money comes from
Formula 1’s commercial-rights business earns revenue from several sources. Liberty Media identifies three primary streams:
- Race-promotion fees: payments associated with staging Grand Prix events.
- Media-rights fees: broadcast and platform licensing, including F1 TV.
- Sponsorship fees: rights connected with the championship, events, digital properties, and other advertising.
There are additional business revenues from hospitality such as the Paddock Club, freight and logistics, licensing, Formula 2, Formula 3 and F1 Academy activities, television production, and Grand Prix Plaza operations in Las Vegas. These are Formula 1 business activities; their revenue should not be described as direct team income unless it is separately paid or earned by a team.
A team can also bring in money through its own sponsorship, advertising, and other commercial arrangements. That income is negotiated by the team with its partners and sits outside the distinction between Formula 1’s company revenue and its Prize Fund payments.
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When asking how a team “earns” money, it is useful to keep those channels separate. Formula 1’s race-promotion, media, and championship sponsorship revenues belong to its commercial-rights business. Contractual Prize Fund payments flow from Formula 1 to teams under the agreement. Sponsorship and advertising revenue that a team secures from its own partners is another stream. Combining all three into one figure would obscure who earned the money and under what arrangement.
How much do F1 teams get paid?
Public filings disclose aggregate payments to teams, not the complete amount received by each team. The figures below are reported by Liberty Media and should be read with their period and context in mind.
| Reported figure | Period and meaning | What it does not show |
|---|---|---|
| $1.400 billion | Aggregate team payments reported by Liberty Media for 2025. | It is not a team-by-team payout schedule. |
| $1.266 billion | Comparable aggregate team payments reported for 2024. | It does not identify each team’s share. |
| $500 million | Aggregate team payments recognized in the first half of 2026, as reported in Liberty Media’s filing for the six months ended June 30, 2026. | It is an interim figure, not the full-season 2026 total. |
Liberty said aggregate team payments rose by $134 million from 2024 to 2025. It attributed the increase to higher Formula 1 revenue and the associated effect on variable Prize Fund elements calculated with reference to revenue and costs. That explanation does not reveal the undisclosed percentage or show how the increase was divided among individual teams.
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The first-half 2026 figure also needs care when compared with a full year. Liberty recognizes payments pro rata across Formula 1 events, and the 2026 calendar assumptions changed after Bahrain and Saudi Arabia did not run in April. A later filing update said Malaysia would host the Bahrain Grand Prix in October and that 23 events were expected for 2026. Event timing and calendar changes can therefore affect interim recognition and comparisons; $500 million should not be multiplied or otherwise treated as a confirmed season total.
The $1.400 billion and $1.266 billion figures are useful for comparing reported annual totals: the 2025 amount was $134 million higher. They do not, by themselves, show why a particular team’s payment changed, how much was connected to championship position, or what any team received after all contractual adjustments. The aggregate increase should not be read as an equal increase for every team.
Likewise, the first-half 2026 figure answers a narrower question: how much Liberty recognized as payments to teams during that reporting period. Since recognition is pro rata across events, it is not a direct statement of the eventual full-year total. Comparing it with an annual figure without accounting for the different period would mix unlike measures.
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Why team payment figures are easy to misread
- Revenue is not the same as profit. The current pool is linked to Prize Fund Adjusted EBIT, a defined adjusted operating-profit measure, rather than being described as a fixed share of gross revenue.
- Aggregate payments are not individual payouts. The reported annual totals cover the teams collectively. They do not reveal the calculation or final payment for each team.
- Performance is important but not the whole formula. Championship results determine most of the result-based allocation, while Ferrari’s heritage-related share is a separate component.
- An interim report is not a full season. The timing of events affects pro-rata recognition, and the 2026 calendar changed during the year.
- A signing incentive is not ordinary prize money. In March 2025, Formula 1 paid $50 million to the 10 teams then competing as an incentive for signing the 2026 Commercial Concorde Agreement. This was a one-time signing payment, not the regular Prize Fund distribution.
These distinctions are why a headline figure, a reported estimate, or a payment associated with signing an agreement cannot safely be used as a team’s annual prize-money amount.
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The public filings establish the broad mechanism: a pool tied to adjusted operating profit, a heritage-related share for Ferrari, and a remaining distribution linked to previous Constructors’ Championship results, with most of that result-linked component weighted toward the preceding season. They also establish aggregate payment totals for particular periods.
They do not disclose the exact percentage, the complete allocation table, or each team’s calculation. As a result, there is no defensible way to reconstruct official team-by-team payments from those disclosures alone. Any precise payout figure attributed to an individual team would need to be clearly identified as an estimate, with its season and assumptions stated, rather than represented as a figure confirmed by the filings.
For readers comparing seasons, keep the accounting period consistent: compare full-year totals with full-year totals, and interim amounts with equivalent interim periods while accounting for event timing. For readers comparing teams, the standings offer a useful indication of how the result-based element is structured, but not a public dollar value for each position.
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A sound comparison therefore starts by identifying what the number represents. Is it an aggregate payment to all teams or an estimate for one team? Is it a full-year figure or an interim amount? Does it refer to the regular Prize Fund or to a separate one-time incentive? Those labels can make a dramatic difference to interpretation. Where an individual number comes from a media estimate rather than a disclosed company calculation, it should be described as an estimate and tied to its season and assumptions.
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Frequently Asked Questions
How do F1 teams earn prize money?
They receive contractual payments from Formula 1’s Prize Fund under the Concorde Agreement. The current 2026–2030 framework ties the pool to a fixed percentage of Prize Fund Adjusted EBIT, an adjusted operating-profit measure. Teams can also earn separate income from their own sponsors and partners.
How is F1 prize money distributed?
Ferrari receives a heritage-related share, and the remaining payments are linked to previous Constructors’ Championship results. A significant majority of the result-linked allocation is based on the previous season’s position. The public filing does not disclose the full schedule or exact weights.
How much does each F1 team get paid?
Liberty Media reports aggregate team-payment figures, including $1.400 billion for 2025, but does not publish the complete official team-by-team allocation. Individual figures presented without a disclosed calculation should be treated as estimates, not confirmed payouts.
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Is the $500 million reported for 2026 the full-season total?
No. It is the amount recognized in the first half of 2026. Liberty recognizes team payments pro rata across events, and the calendar changed during the year, so the interim amount is not the confirmed full-season total.
Is the 2025 signing payment part of ordinary prize money?
No. Formula 1 paid $50 million to the 10 teams then competing in March 2025 as an incentive for signing the 2026 Commercial Concorde Agreement. It was a one-time signing incentive, distinct from ordinary Prize Fund payments.
The Bottom Line
F1’s Prize Fund is contractual and tied under the 2026–2030 Concorde Agreement to adjusted operating profit. Ferrari receives a distinct heritage-related share, while most of the result-based allocation follows the previous Constructors’ Championship. Liberty Media discloses aggregate payment totals, not the exact percentage or official team-by-team amounts, so individual payout figures should be treated cautiously unless their status and assumptions are clear.
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