Do Formula 1 drivers receive prize money for winning a Grand Prix?

Charles Leclerc and not serial winner Max Verstappen romped home in first place at the 2024 Monaco Grand Prix, an extra special victory given it is not only the most prestigious race on the calendar but also the Ferrari driver’s home race. But despite the event’s iconic status, the 26-year-old didn’t directly receive any prize money for his victory.

How do drivers make their money in Formula 1?

Formula 1 distributes prize money to its constructors (teams) based on how they perform in the championship, but drivers aren’t financially rewarded by the race organisers for how they fare in each Grand Prix, as is the case in other sports, such as golf or tennis.

It does, however, still pay to be quick. Drivers each earn a base salary from their team, who also offer them extra financial rewards depending on how successful they are. Like in golf or tennis, then, the best make the most money, although that’s down to how much their constructor is willing to pay them in terms of base salary and bonuses.

In 2024, reigning Drivers’ Champion Max Verstappen is the highest earner on the grid according to Racing News 365, picking up a base salary of $55 million from Red Bull Racing. Lewis Hamilton’s move to Ferrari next year is expected to see him pick up around $100 million, including bonuses.

How much prize money does the Constructors’ Championship winner earn?

As you would expect, the team that finishes highest in the Constructors’ Championship earns the most prize money, with the 10th-placed team making the least.

In 2023, Red Bull received an estimated $140 million for winning that particular title, which they topped up with additional sums received from sponsorships, merchandise and commercial deals. According to newly-introduced budget cap, though, they can only spend $135 million on developing and building their race cars per year.

As per the latest Concorde Agreement signed in 2021, the top team in the Constructors’ Championship receives 14%, with 6% going to the bottom team (previously 20% and 4%).