The two highest profile single-seater championships in the world are F1 and IndyCar. Both races frequently see vast crowds, and both have an international appeal, with many of their drivers becoming household names.

Many consider Formula 1 to be the pinnacle of motorsports. Over the years, the sport has adapted and grown to ensure fans have the best experience possible. With changes in regulations and expansion in the international market, Formula 1 continues to grow faster than ever.

Meanwhile, the Indy 500 is widely considered to be one of the three most important motorsport events, along with Formula 1’s Monaco Grand Prix and the 24 Hours of Le Mans.

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Although they may look similar, there are some important differences between the two that can lead to a very different experience for drivers, teams, and fans. With that in mind, fans often wonder about the prize money that is distributed to the drivers and the constructors. Let us take a more detailed look at it.

What is the prize money in the Indy 500?

The Indianapolis 500, better known as the Indy 500, was a complete success in 2022. Over 325,000 fans on-hand witnessed a champion crowned, all of which led to the largest Indianapolis 500 purse ever.

The stakes here are always high, but in 2022 they reached a new level. The Penske Entertainment Corp, that acquired the NTT IndyCar Series a few years back, delivered the 2022 race in some fashion. Although the 2020 and 2021 seasons saw poor margins of prize money being distributed, this year they nearly doubled it.

Due to COVID-19 and the absence of fans, the purse was only $7,502,500 in 2020 and subsequently only $8,854,565 in 2021. This season, however, $16,000,200 were up for grabs. The previous high was $14,406,580, came in 2008. Before 2008, it did not hit even $11 million.

How much does an Indy 500 driver receive as prize money?

Victory is sweeter than ever for Marcus Ericsson, who became the highest-paid Indy 500 winner in history. The 31-year-old Swedish driver earned a whopping $3.1 million for his driving prowess by taking the checkered flag.

Previously, it reached the 3 million mark when Helio Castroneves, who was also last year’s winner, earned $3,048,005 in 2009. The purse that year? $14,315,315, which is the third-highest till date.

2022 Runner up, Pato O’Ward received $1,000,000 while 3rd place Tony Kanaan received $400,000. The fourth and fifth place drivers earned more than Kanaan, as the prize money depends on various factors like pole position or laps led. For example, this year’s pole-sitter Scott Dixon earned $707,000 despite only finishing 21st.

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The Indy 500’s popularity is on the rise, and it is evident with the increases in its prize money. But, how does F1 fare compare to the Indy 500?

How does F1 distribute prize money?

Formula 1’s revenue is sky high, and the figure is rumored to be somewhere around $1.39 billion for last year. According to sillyseason.com, the total prize money is equivalent to 47.5% of the underlying profits of F1. With that in mind, the F1 prize money comprises two parts. One part is for the F1 teams while the other is for the shareholders.

The core payment to the F1 teams is further split into two. While one half of the money is split equally between the teams (23.7 percent), the other half is distributed to teams in proportion to how far they have finished in the standings. Meanwhile, the additional payment will go to the F1 shareholders.

F1’s income is estimated at $100M – $140M per race. With Formula 1’s rising engagement among various nations, it will only keep growing. The sport’s successful team, Ferrari, also receives two and a half percent of the share as part of a deal between the team and F1.

Do F1 drivers win prize money by winning races?

F1 drivers earn lucrative salaries but do not receive any money for winning a race. At the same time, many variables go into determining the driver’s salary and bonuses, including wins, podium finishes, championships, and endorsements.

The teams who offer the contract negotiate these variables with the drivers. According to reports, Max Verstappen leads the way alongside Lewis Hamilton as they earn $52 million a year.

Fernando Alonso, with around $19.5 million, is third, followed by Sebastian Vettel and Daniel Ricciardo with $14.6 million. As per reports, after winning the championship, Verstappen earned a whopping $17 million as a bonus.

Indy 500 and Formula 1 hold great importance in the world of motorsport. So it is only natural that the teams and drivers are paid handsomely.