2015 Payments to teams

[Viscount]

Here's a table of the payments being made to teams for their 2015 performance (and historical importance) from Autosport:

Ferrari topping the list as usual, due to their 'long-standing team' payment.

To explain some of the extra payments: "Williams receive a $10m heritage bonus, Red Bull receives its extra annual payment for being the first team to sign the current bi-lateral agreement, while Mercedes will earn its bonus annually from now on after meeting its agreed target of two world championships."

Column 1 payments are based on a team's classification over two of the past three years, while Column 2 payments are based solely on a team's 2015 classification.

The Column 1 pot is divided equally amongst all qualifying teams with each estimated to earn $33.5m.

Column 2 is calculated on a sliding scale from first to 10th place with first receiving 19 per cent of the fund, sixth 10 per cent and 10th four per cent.

It's all split very fairly and balanced...

 

[ATL11]

All looks straight forward, if only the people who developed this easy to read table, with what looks like an even & fair distribution of money, would be allowed to facilitate a Qualifying improvement program, Oh hang on......

 

[TR]

I am confused. If the col 1 are based on the team's qualification over the past three years, why do all teams get the same thing?

Is col1 solely based on scoring in the top 10 or something?

 

[ATL11]

I am confused. If the col 1 are based on the team's qualification over the past three years, why do all teams get the same thing?

Is col1 solely based on scoring in the top 10 or something?

Wonder if this is a classification of being a F1 team as opposed to performance, hence why Manor turned up in Melbourne last season did a lap and then packed up, e.g. classified?

 

[Viscount]

Column 1 is an equal split of money for all teams that finished within the top 10 of the constructor's championship for at least 2 of the 3 previous seasons.
So HRT for instance finished 11th, 11th & 12th respectively when they existed so were never entitled to any of the money in Column.
Haas being a new team won't be eligible for any money from Column 1 at the end of this season regardless of where they finish this season, since it's only for teams that have been in F1 for at least 2 years.

I've added a little more explanation to the OP.

 

[cider_and_toast]

That's 295 million dollars given to 5 teams for no other reason than 'just because'.

 

[Galahad]

The distribution isn't great, and the"bonus" payments, for teams who betrayed FOTA for their own ends, are shameful. But the bigger issue is the overall size of the cake in the first place. The money CVC are leaching out of the sport, putting little back in terms of investment, could create a sustainable funding model for the independent teams and even allow some of the worst cost cutting regulations to be rolled back.

 

[TR]

The distribution isn't great, and the"bonus" payments, for teams who betrayed FOTA for their own ends, are shameful. But the bigger issue is the overall size of the cake in the first place. The money CVC are leaching out of the sport, putting little back in terms of investment, could create a sustainable funding model for the independent teams and even allow some of the worst cost cutting regulations to be rolled back.

Is there a reason you are singling out CVC? Or are you point to the FOM share holders in general? It is my undestanding that CVC own less than half the shares (but with some provision giving them a controlling vote over FOM.

 

[RasputinLives]

Ferrari get 5 times more cash than Manor. Crazy.

 

[Galahad]

Is there a reason you are singling out CVC? Or are you point to the FOM share holders in general?

CVC have sold off significant chunks recently, as I understand, but you can certainly apply the same criticism to the other entities that own the remainder. It's a great sadness to me that the teams never went ahead with the threatened breakaway. Without them there's no business at all.

 

[Hamberg]

Jebus how long do you have to be in F1 to be classed as a 'long standing team'. 50yrs obviously not enough.

May as well have named it the 'Ferrari bribery bonus.'

 

[FB]

CVC might only own 35% but between them and Delta TopCo (also 35% owners) it appears they take most of the profits.

Meet the biggest winner in the history of Formula One: CVC Capital Partners

 

[TR]

CVC might only own 35% but between them and Delta TopCo (also 35% owners) it appears they take most of the profits.

Meet the biggest winner in the history of Formula One: CVC Capital Partners

1) Delta TopCo is simply the parent company of the formula 1 group. CVC owns 35% of the shares of Delta TopCo. (which come with a preferred status giving them full control of the company.)

2) That article gives no reason to think that CVC is getting anything more than 35% of the dividend paid by Delta TopCo.

I think Galahad's criticism above is essentially that Delta TopCo is paying out too much dividend instead of "reinvesting" part of the profits back into F1. Given that CVC has a controlling share in Delta TopCo, it can certainly be blamed for that.