Ferrari’s (NYSE:RACE) ‘Seb’ Vettel is F1’s Largest Prize Money Winner With $510-M+ Take So Far

Ferrari’s (NYSE:RACE) ‘Seb’ Vettel is F1’s Largest Prize Money Winner With $510-M+ Take So Far


F1 star driver Sebastian Vettel has earned more prize money for his teams than any other driver in F1 according to the latest research.

F1’s annual prize money payout is public knowledge and came to $913-M last year. F1 does not disclose how much is received by each team, the formula for calculating it has been reported. But, until now it has never come to light how much each driver was responsible for earning, until now.

The core prize money is equivalent to 47.5% of F1’s underlying profit. It is then divided in 2 parts with 1 half split between the Top 10 teams in the championship on a sliding scale based on race results.

The other half is split evenly, but is still driven by race performance as it only goes to teams which have finished in the Top 10 in 2 out of the past 3 years.

In Y 2013 I learned that another 7.5% of F1’s underlying profit is given over to the Top 3 teams based on the number of races won in the 4 seasons prior to Y 2012, which is when this benefit was 1st introduced. This bonus money is known as the Constructors’ Championship Bonus (CCB) fund and it comes to at least $100-M annually.

It is guaranteed regardless of the teams’ race results and is split between Ferrari (NYSE:RACE), McLaren and Red Bull Racing which leads the CCB pack. This gives it a minimum of $37-M from the CCB fund with McLaren getting at least $33-M for being ranked 2nd and $30-M going to Ferrari.

Ferrari also gets its own dedicated prize money pay-out as well as sharing in the 47.5% and the CCB Fund. The dedicated prize money gives Ferrari 5% of F1’s underlying profit which comes to at least $62.2-M annually. Like the CCB fund, this is paid regardless of Ferrari’s race results and it comes in return for the iconic Italian outfits being F1’s longest-standing team having been racing in the championship since it was launched in Y 1950.

In Summary: only the core prize money payment relates the teams’ race performance. It is based on their position in the prior year’s standings which depends on the number of points they scored. In turn, each team’s tally of points is calculated by adding up the number scored by both of its drivers.

To work out who are the best performers it is 1st established the percentage of the team’s points scored by each of its drivers. Accordingly, the ranking is not just fueled by the success of the team but also a driver’s dominance over his team mate. The more successful the team is, the more points it scores. Likewise, the more dominant the driver is, the greater the percentage of these points he scores for the team.

Career length is also a Key factor as the longer a driver has been racing, the more time he has had to score points and therefore to earn prize money for his teams.

As the table below shows, Mr. Vettel is in the Top Spot with $511.9-M and for good reason.

Sebastian Vettel has earned more prize money for his teams than Lewis Hamilton even though he has won fewer championships

Mr. Vettel has earned more prize money for his teams than Lewis Hamilton even though he has won fewer championships.

Mr. Vettel joined F1 in Y 2007 giving him the joint 2nd-longest career of any of the current drivers.  He ties with MercedesAMG’s Lewis Hamilton who trails Mr. Vettel by just $62.3-M. Mr. Hamilton has won 5 titles compared to Mr. Vettel’s 4, but the driving force behind his lower prize money haul is the result of the Y 2007 season.

Note: This year’s championship began last month, so the race to become F1’s most bankable driver is far from over.

Ferrari is the Aristocrat of the automotive sector.

The iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.

Ferrari is the Aristocrat of the automotive sector.

HeffX-LTN overall technical outlook for RACE is Bullish across the board, and there is very little resistance here and none above 140.26. All of our Key indicators are Very Bullish in here.

Baku GP next weekend, stay tuned.

Have a Happy and Holy Holiday weekend.

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