How Much Do F1 Drivers Recieve in Prize Money for Winning the World Championship Title?

After a seven-year period where Mercedes pretty much dominated the sport, 2021 presented F1 fans with one of the closest title battles in recent memory. Lewis Hamilton and Max Verstappen were at each other’s throats since the very first F1 race in Bahrain.

And why wouldn’t they be, considering the prize at stake is the precious tag of ‘Formula 1 world champion’.

One might also wonder, do the drivers receive any kind of prize money for lifting the world championship trophy? Well, the answer is rather complicated.

Do F1 drivers receive a bonus for winning the title?

Let’s start from scratch. A drivers’ world champion will never receive any kind of prize money directly from Formula 1. Instead, the sport mostly deals with the constructors. The yearly price money payout of 2020 was approximately around $913 million, according to reports.

The main prize money is roughly equivalent to 47.5% of F1’s net profits.

F1 would then split this money into two parts; one half equally to the teams finishing in the top 10, the other half according to how the teams finished in the standings. Meaning, Mercedes would receive the highest cash prize if they manage to secure the top spot while Haas would receive the lowest check.

The remaining 2.5% would go to Ferrari because of their special contract with F1.

Who offers drivers bonuses?

The teams hold the trigger on whether a driver receives a bonus or not. Let’s consider drivers like Nikita Mazepin and Mick Schumacher, who have almost zero chances of winning the title. Hence, Haas would set reasonable and rather achievable targets in their respective contracts for the duo to earn bonuses apart from the yearly salary.

Hence, in the case of 2021 title contenders, it’s Hamilton and Verstappen. It is quite certain that both would have bonuses for winning the championship this season. The bonus money doesn’t have to be equal amongst all teams and varies according to the interest of the individual team or the driver.

Overall, the answer is ‘Yes’. F1 drivers have the option of earning bonuses for winning titles. But, it ultimately depends on their contractual agreement with their teams.

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