Photo Credit: Scuderia Ferrari
Ferrari appear to be keeping their historic bonus payment in the newest Concorde Agreement. However, the amount it usually gets will be capped.
The Concorde Agreement is a document which lays out how F1 operates. Especially in relation to regulations and commercial rights. It’s signed by Liberty Media and the F1 teams, the new Agreement will come into effect in 2026.
As part of the regulations, the Concorde Agreement sets and approves the prize amounts for each team based on a portion of the overall prize pool. As per current regulations, teams receive 50% of F1’s income. Sometimes receiving less if the profits are larger.
Currently, with F1 profits being estimated at $3 Billion in 2022, F1 teams gain a 45% share.
Ferrari have always had a significant role within the Concorde agreement. Due to them being the only team that has participated in F1 since the championship began.
Ferrari were given a veto back in 1980. This gives them the ability to block any regulation change they want. Now, this is utilized on behalf of all F1 teams, not just them. Alongside their veto, Ferrari also receive a bonus payment that is given regardless of where they place in the championship.
Under the current Concorde Agreement, Ferrari is awarded a bonus that is at least 5% of the entire prize fund. It seems they don’t exceed the 5% unless the prize pot goes over $1.1 Billion. However, if the prize pot grows, Ferrari gets a share up to 10%, where the bonus is currently capped.
As per the report by Motorsport.com, Ferrari’s bonus will be restricted to 5% beginning in 2026. Regardless of the prize pool size. Still giving Ferrari a large bonus, but without the added boost it has seen in recent years.
Teams stances of Ferrari’s bonus
Although controversial, many of the smaller, financially restricted teams, understand the reason behind the bonus.
Williams’ team principal James Volwes admitted, “I think Ferrari brings something special to the sport. We have to be honest about that.”
He recognised the ‘heritage’ that Ferrari brings. Agreeing that the attention the brand brings to Formula one is the driving factor behind the bonus.
Ferrari team principal Fred Vasseur made it clear he would not be commenting on the terms of the agreement. Because it is supposed to be confidential. In Imola he said, “Enjoy asking the questions, but you know that I will never reply!”
Teams, including long-standing one’s like McLaren, have voiced their opinion that Ferrari’s bonus is antiquated or no longer necessary. Despite this, there are no actions being taken to erase it or include an additional team.
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