The F1 teams have agreed on a new policy on how much drivers will be paid for the season.
According to motorsport the teams pledged to pay their race drivers a total of up to $ 30 million for the period. This amount can be freely distributed among the drivers.
The teams consider a salary cap for the team’s top executives, in this case team managers and technical managers.
The change is scheduled to take effect for the period 2023. The implementation of the economic reform still requires the formal approval of the World Motorsport Council.
Schumi earned wildly
If realized, the salaries of the top drivers in the series will fall dramatically. Reigning world champion Lewis Hamilton is estimated to earn about $ 40 million for one season.
Mercedes will therefore be forced to drop the British driver’s annual earnings when the rule reform takes effect. Mercedes must also take its other driver into account when paying Hamilton.
In the history of the F1 series, many drivers have earned astronomical sums. For example Michael sSchumacher earned more than $ 30 million in driving salaries in his Ferrari years, according to Forbes. Also Kimi Raikkonen reached similar salaries in his first Ferrari career.
In addition, during his peak years, Schumacher earned tens of millions of euros through various personal contracts. According to Forbes ’2019 listing, Schumacher earned a salary of $ 413 million, with Hamilton’s balance of $ 435 million.
According to the same financial magazine, Schum’s total career earnings are over billion dollars.
This can also be a bargaining chip that teams use when turning future star driver contracts.
The teams can outsource some of the payments to team partners, or the drivers will be given a freer hand with regard to their own personal contracts.
The consumption party ends
F1 will enter a new era next season, when for the first time in the history of the sport, the waste of stables is limited by a budget ceiling.
2021 stables can spend $ 145 million, with certain restrictions. The amount does not include, for example, the salaries of drivers and team management, as well as marketing expenses.
The budget ceiling is to be brought down in the coming years. The sum for 2022 is $ 140 million and for 2023 $ 135 million. It is not yet known whether the salaries of drivers will be included in the total pot as early as 2023.
Some F1 stables have been demanding a budget ceiling for years. As a result of the financial uncertainty caused by the coronavirus, F1 was allowed to run through the austerity program that will take effect next season. The cost discipline is intended not only to keep stables alive, but also to improve the advantage of larger stables by burning.
Of the top companies, for example, Mercedes and Ferrari run their businesses with annual budgets of more than $ 400 million. The budgets of the smallest stables are just over a hundred million dollars.