Tv $$$

[Wrex]

From Autorace.com

Stoddart slams FIA's reward system

Formula One's hierarchy is based on the teams' performance in the previous season, with only the top teams sharing in the revenue of TV rights, which is estimated at $500 million for 2001 (according to Forbes Global) of which 47% goes to the teams. These teams also get "awarded" by the FIA with travel expense money.

Minardi boss, Paul Stoddard slammed the FIA's reward system and explained why when he said: "The teams at my end of the grid need the money more than the teams at the other end of the grid. So it's quite pointless having a system that rewards performance, because the people who are at the top end of the grid, in the main, are manufacturer-backed, and budgets are not an issue."

He raises an interesting point about the fairness of the distribution, but being in Sales I have to agree with the FIA. Surely though a slightly flatter distribution would be better for the sport. Your thoughts?

BTW, does anyone know how this $500m is distributed, ie; how much to each team?

[Don K]

Originally posted by Wrex
He raises an interesting point about the fairness of the distribution, but being in Sales I have to agree with the FIA. Surely though a slightly flatter distribution would be better for the sport. Your thoughts?

BTW, does anyone know how this $500m is distributed, ie; how much to each team?

I would say the top teams should be allowed to get a bigger share.

If the teams' share of the revenue is devided every race, I would say that every team that manages to qualify should be entitled to have a part of it.

If it is devided once a season, it should be something like "every team that manages to score one or more points" or "the best 10 teams" or "the best 12 teams" or "the best 16 teams" or something like that.

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I cannot answer the question about a flatter destribution being better, until somebody tells us how the money is being distributes at the moment.

[LucaBadoer]

Half the money should go to the team who finishes at the bottom of the championship table. Then, the next team should get a quater etc. This would act a little like in the BTCC where the top teams are given extra weight.

[Wrex]

Just found this on Formula1.com from November last year

Now that the constructor's championship is decided, teams can look forward to getting the prize money they have earned based on their final position in the championship table.
All teams will earn approximately $6.5 million as a fixed amount, as well as a certain percentage based on their final positions.

This will be distributed as follows:

(All figures in million of dollars)


Ferrari $13
McLaren $11.3
Williams $8.7
Benetton $7
BAR $6.5
Jordan $6
Arrows $4.6
Sauber $4.2
Jaguar $3.3
Minardi $2.6

Prost Grand Prix will not receive any of the above prize money as this is only divided among the first ten teams.

In addition to this prize money, the teams will split 47% of the TV rights revenues generated by Formula One Administration, which are also distributed in predetermined percentages according to how teams finish in the table. These percentages are governed by the Concorde Agreement.

Very roughly speaking, the TV rights revenues for the current season amount to $250 million, meaning the teams will split around $118 million.

[Don K]

Originally posted by Wrex
Just found this on Formula1.com from November last year

... prize money ...
Ferrari $13
McLaren $11.3
Williams $8.7
Benetton $7
BAR $6.5
Jordan $6
Arrows $4.6
Sauber $4.2
Jaguar $3.3
Minardi $2.6

This sounds fair to me.

Bad luck for Prost, though.
Minardi gets $2.600.000 more than Prost;
That difference is bigger than the difference between Minardi and Arrows, Sauber and Jaguar.

Considering the TV rights bring more money than the prize money,
I sincerely hope the Concorde Agreement makes sure the top teams are getting more money than the rest. Otherwise we are just watching a TV show, pretending to be a professional sports event.

[Maxmil]

Originally posted by Don K

This sounds fair to me.
Bad luck for Prost, though.

Not bad luck for Prost, it's by design. Hopefully, the weakest teams will drop out so better ones come along - like Toyota - to replace them. In Prost's case Deniz has supplied enough funding to keep them alive.