The Ferrari Formula 1 team is one of the most iconic and successful teams in the history of motorsports. Their cars are fiercely competitive, their drivers are some of the fastest on the planet, and their fans are among the most devoted in all of racing. They have won a combined total of 16 constructors’ championships and 15 drivers’ championships since their formation in 1929.
But with the cost of competing in Formula One increasing, is the Ferrari F1 team still profitable? In this article, we will take a closer look at the finances of the team to try and answer that question.
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Does Ferrari (Formula 1) produce profit?
Yes, the Ferrari F1 team is generally a profitable venture for the company. They receive an estimated $500 million in total from Formula One each year, which is supplemented by various sponsorships and prize money. This serves to cover their expenses to stay competitive and make them a successful team on the track.
One unique benefit that Ferrari has is that they receive an additional $35 million each year as part of their participation in the Formula 1 World Championship. It is due to their long-standing presence in the sport, as well as their impressive track record as the most successful team in F1 history. This additional funding helps to further supplement any other prize money that Ferrari earns.
Key takeaways
Here are some key aspects that you should know about regarding Ferrari’s earnings in Formula 1:
- Ferrari F1 is one of the most successful teams in motorsports.
- The team receives an estimated $500 million from Formula One each year.
- They receive an additional $35 million due to their long-standing presence in the sport and track record as the most successful team.
- Ferrari F1 is generally a profitable venture for the company.
- They receive various sponsorships and prize money to cover their expenses.
Understanding how Ferrari F1 earns their money
Making a profit in F1 is an incredibly difficult task, as teams must invest heavily in order to stay competitive on the track. The costs associated with running a Formula 1 team include constructing and maintaining cars, funding driver salaries, and many other expenses.
Let’s take a look at some of the ways Ferrari earns money:
Sponsorship Money
This is a major source of revenue for most F1 teams and Ferrari is no exception. The team has many sponsor deals involving major players in the market such as Shell, Santander and Velas to name a few.
These deals are often worth millions of dollars per year and help to cover the costs of running a Formula 1 team. As an example, Ferrari’s deal with Shell is reportedly worth $10 million a year.
TV Rights
Ferrari receives a significant portion of their income from television rights. The team has exclusive deals with many networks around the world, allowing them to broadcast races and other content related to the team. This helps to supplement any prize money they may earn during the season.
Prize Money
Another major source of revenue for Ferrari F1 is prize money. They are the only team that has competed in the F1 World Championship every year since it was formed in 1950, and they are also the most successful team in the championship, with 31 world titles (combining constructors’ and drivers’). As a result, they get additional prize money to cover their expenses.
Moreover, they have also proclaimed in 2020 that they were the first team to have completed 1000 Grands Prix, which further highlights their longevity in the sport. This preferential treatment goes even beyond just being a long-standing team in the championship – Ferrari’s political ties and influence of the sport has allowed them to reap rewards and receive additional prize money.
Sale of Merchandise
Formula 1 has a huge fan base and Ferrari is one of the most successful teams in the sport. This makes them a popular choice for fans when it comes to buying merchandise. They are also able to benefit from merchandising deals with other companies as part of their sponsorship arrangements.
Merchandise includes items such as hats, shirts, and other memorabilia related to the team. The sale of these items can generate a significant amount of revenue for the team. Additionally, sponsors often purchase or co-brand merchandise with their logos or slogans printed on them. These sales can also be an important source of income for the team.
Aston Martin secures its major source of income through significant sponsorships from international brands who share common values with the F1 team.
Ferrari revenue and profit compared to other F1 team
If we compare Ferrari F1 earnings with other F1 teams, it is easy to see that Ferrari are in a league of their own. They have the most sponsorship deals and receive the highest amount of prize money from Formula One. Moreover their $35 million bonus due to their long-standing presence in the sport and track record as the most successful team is unparalleled.
All these factors combined have enabled Ferrari to maintain a profitable Formula 1 team for many years. They are able to cover their expenses and generate a profit each year, while other teams struggle to stay afloat.
However, they’re not the only team that has been profitable in recent years. Mercedes have earned $61 million in 2021 alone, which indicates that their performance has been impressive. Red Bull Racing (Formula 1) is also doing very well and have generated more than $10 million from sponsorships and race winnings over the past few years.
| No. | Teams | Revenue in Million US Dollars |
|---|---|---|
| 1. | Mercedes | 452 |
| 2. | Ferrari | 426 |
| 3. | Red Bull Racing | 327 |
| 4. | Alpine | 195 |
| 5. | Williams | 176 |
| 6. | AlphaTauri | 172 |
| 7. | McLaren | 165 |
| 8. | Haas | 96 |
| 9. | Alfa Romeo | 84 |
| 10. | Aston Martin | 22 |
Frequently asked questions
Is owning an F1 team profitable?
Who owns Ferrari's F1 team?
Conclusion
Ferrari has been a profitable Formula 1 team for many years, and is currently one of the most successful teams in the championship. With their large number of sponsorships, TV rights and prize money, they are able to maintain a profitable business model.
Additionally, their long-standing presence in the sport and political ties mean that they often receive preferential treatment from Formula One. This further increases their earnings and ensures that they remain profitable. Other teams may also be successful, but Ferrari’s business model makes them stand out from the crowd.
