How F1 Drivers Make Millions?

Formula1 also known as F1 racing is actually a billion-dollar organization and demands a huge amount of money to stay in the game. The drivers pay pretty high fees with a basic registration fee of almost $11,000 including many other extra dollars per point in the previous season.

Now the question arises, How Formula 1 is making money?

• Essentially the teams playing are funded according to the points they earned in the previous season. Since teams with bigger budgets have tended to play better and those with low budgets are shut out, F1 decided to limit the team’s expenditures and implemented the budget caps in 2021.
• Another way through which they are earning is through investments and sponsorships. Usually, car manufacturers look at F1 as a marketing tool, hoping that the winning teams will make their cars more appetizing to the people.
• However sponsorship is another tool, they are using to make money.

Now when it comes to drivers, F1 has two drivers, which are paid by their teams. Their pay is not part of the team budget cap. Their salaries are based on the performance they show on the track and the points they earn.  For 2023, their salaries range from $1 million to $55 million, in addition to this, winners earn more than this.

Final Thoughts

Formula 1 drivers are one of those who earn millions of dollars just by sponsoring, collaborating, and investing.

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