It's the same with every racing, at all levels. Even the smallest category of racing on 2 wheels can get very expensive for a mere mortal. Such a shame, really.
Mercedes: Spends over $145 million FiA: Fines Mercedes for spending to much Mercedes: Pays the fine and continues to over budget FiA: *suprised pikachu*
I think FiA then will come to take to themselves the money, that Mercedes spent to over budget to make their car better and faster to have easier chance to win again their boring 1 and 2.
watch how quickly people like you jump off the mercedes bandwagon and join red bull or others when they start to win races. Or better yet, why dont people like you do some proper research and discuss why the FIA has allowed Mercedes to continue their development of their engine over 7 years ago when the same engine was used in another motoring championship? Giving Mercedes the edge over any other F1 team. Oh the politics of it all
@@torquethetalk We all know that the FIA authority figures are just supremely intimidated by Toto looming over them, glaring and then growling, "Fuck off." Obviously nothing shady to see there.
Honestly I’m really doubting if Mercedes can maintain their dominance with only $145m , it’s been so long since they haven’t had a near unlimited budget
They and Ferrari (in particular) could be in big trouble. The gap between what they spend currently and what they will have to spend from 2022 is too large. Unless the vast majority of what they've been spending on has not been R&D or Engine related which I highly doubt. Its the last great hope for levelling the playing field.
The FIA is so concerned with bringing about greater parity through spending caps and technical limitations. However those FOM payments look like the most egregious factor in ensuring that parity is not possible.
I was thinking the same thing when watching it. If the lowest teams gets a substantial amount lower to invest into R&D, how are they supposed to catch up?
I'm Italian and this video came out on my home page by chance. Mamma mia how much quality is this video, I don't believe you have so few subscribers, keep it up and you will grow a lot. You are very good, a greeting from Italy (and always forza Ferrari)💪💪🔝
When you look at Alpha Tauri, you also have to consider that main engine R&D and the costs associated with it is also shared with Red Bull cause of the Honda engine and Alpha’s status as a Red Bull junior team
Amazing vid as always RP. I'm soo happy you decided not to take the "easy" path and just talk about current f1 topics that get the most views but instead you provide original well thought content. You're my fave f1 ytber, keep it up!
Shitty small man syndrome comment. How is it an insult that someone’s parents are better than yours. Do some research, he’s clearly a talented young driver as well.
Basically like NASCAR. “Win on Sunday, sell on Monday.” It’s gonna be hard to top how exciting this year has been in F1, but I’m looking forward to the new regs. Plus nascar is going to new composite bodies to lower cost and even competition. These are all great things for race fans. Super video, thanks!
Been watching F1 since the mid 80s. I think your videos are bloody brilliant. This was super interesting and well put together. Keep up the good work mate 💪
The problem is when the entry level is to expensive the talent pool becomes smaller. It becomes "we are not competing against the best in the world but the best who could afford it." I am of course referring to drivers. How can anyone claim to be the best at something if the sport they are in has a lower and lower talent pool every year.
This video is well-prepared with editing, finding excellent visual content and statistics. Thank you for your work. Love that and hope for the more updated version.:))
@@TheMotorMouthPodcast is it really that small though? F1 and it's teams sell a huge amount of Merch at very large margins. Care to speculate on numbers?
@@TheMotorMouthPodcast Fez sold $1.5 billion in global merch sales in 2019 record sales, so they would have received a fair payment from that alone, plus their $245million sponsorship deals then prize money so I'm sure they never broke even lol
Thank you. I watched it this August 2022 an I loved it. I'm looking to understand all the technicalities in F1 like I do with football and other sports that are common here in Africa.
oh, most of them are break-even, thats a good thing in a competitive scene. Compared to football nowadays that clubs are milking their players for gaining more money.
The last point about the translation between F1 and road cars was spot on. You can see this in the priorities of certain car markets relative to F1 interest. In the UK, France, Germany, and Italy (and sometimes Japan), the consumer car market for performance cars mainly revolves around the engineering of the car (balance, handling, 0-60). In the US, the biggest performance car consumer market (and generally, the car market) are more focused on safety features, longevity of the engine, fancy interior, idiotic design that was put through a wind tunnel upside down, and embarrassing turbo noises. F1 interest in the US must be top priority for the FIA if the future of performance cars is to be secure (look at how BMW has already cracked under US consumer demands to embarrassing enormous grill designs).
Great video ! Loved how you broke everything down in a simple way. Just have to point out that nearly every single report online says Mercedes made a profit in 2019. Keep up the great Vids !!
@@TheMotorMouthPodcast oh that's cool then. I trust racefans know what they saying because it's an awesome site. Keep up the great content. Hope to see more amazing stuff now F1 is about to kick off again ! Have a great weekend 👍
As a marketing professional, I absolutely LOVE this video! Learnt so much from it never knew so many teams break-even and didn't have heavy losses compared to most major football clubs.
This is amazing information. I've been following F1 for 40 years and this is the first time I've heard an explanation of how this works. Great job. Thank you.
Very well done and professionally made video mate! I'm very proud of your work, and I know the hard work will pay off. Remember me when you get famous please!😊
This is really a great video. Thanks for explaining the business side of F1. But I think u have missed on the profits made by Mercedes, Ferrari on engine and gearbox supplies.
Great video, there are a few other revenue streams in there I reckon. Merchandise sales for popular teams will be significant. Licensing their brand to model company's and top companies etc will also bring addition revenue.
I am going to be impressed that they can pull off an effective racing schedule with much less money due to the cap. Thankyou for the explanation and the layout of where the money comes from and where it goes.
Great breakdown of the financial aspect of F1. I really enjoyed the content here. A lot of what makes F1 interesting for me is the things going on behind the scenes as well as the actual racing. Keep it up!
Thank you for your work! Very informative and enjoyable to watch. I love Ferrari but I won't be surprised if they eventually cheat the budget cap too lol
Good job, pretty good video! It would be really interesting to have a similar one analyzing how FOM makes money as well and what are the figures involved.
This video was so interesting! It’s crazy the money they’re playing with, unreal amount. I still think the long standing payment is way too high and so irrelevant!
It is not an irrelevant payment if it is for everyone. Total pot divided by the total number of seasons the teams are competing in f1 and then distribute these parts among the teams equal to the number of seasons they have been competing. That way you value your heritage and benchmark and support future loyalty. In that scenario Ferrari would still take the bulk of the money, but on merit. Now it is very unfair.
I think f1 might be the hardest sport to compete as an owner. I mean, there are some team in the past that join but ultimately fail. I wonder if teams such as monaco or panthera that wanted to join F1, how long does it take to reach the level of top teams or midfield teams
Yeap like my late dad said, F1 is essentially a real-life advertisement for most teams to intice viewers to buy their car brands. It's difficult to calculate that translation process. Also, the technologies innovated in racing eventually make it to mainstream car engineering for various benefits.
with the budget cap, isn’t there a clause that people such as lewis aren’t calculated? something about top personnel excluded? i think remember that from a broadcast
It's drivers plus to 5 or 6 other top salaries. They can spend through the roof on those. One thing I'd like to see a video on is the discussion that lead to the absolutely bizarre and unprecedented "historis committment" payment to Ferrari. The company that has gained the most from F1, which is most tied to the series, whoe entire business model is linked to winning races, needs a massive bribe, equivalent to more than the Constructors championship pays? What pressure did the prancing stallion apply to get that awarded?
Since all drivers pay is exempt from the budgets, that where it belongs. A bizarre decision, by presumably brought in under pressure from the drivers themselves
I'd imagine one of the loopholes the teams are going to use is to have the sponsor contracts split so that they'll partially sponsor the drivers directly allowing them to cut costs on driver salaries without touching the drivers earnings.
There would be no reason to do that. Since drivers salaries are on the dozen or so exemptions from the budget, they have no really good reason to artificially low them. In fact, I won't be surprised to see, the high priced teams try something like(depending on how tightly written are the rules) employ their drivers as partners. Say" I'll pay you 100 million to drive, but you personally have to fund design testing in the wind tunnels. You get $100 million if you show up with a fully compliant rolling chassis. Or with a complete power unit (for those teams buying in engines) If there is one thing F1 teams are all experts at, it's getting around inconvenient rules.
Huge fan of Ferrari. Saw Shell on their car, been filling my tank and change oil with Shell. Saw Kaspersky, easy choice for my PC Antivirus. Saw Lenovo when in need of new laptop, instant pick. Schumi's Ferrari was Bridgestone loyalist, have to give my car the same tyres as my idol.
@@TheMotorMouthPodcast Were you being as sarcastic as me? Seriously though, the video overall was good but that was a WTF moment. Oh, and the sarcastic sounding references to Lewis Hamilton's salary/pay cheque. You may not have meant anything by it but your tone at both mentions implied you have an issue with it.
Bruh, F1 is definitely pay to win too. The big boy (Mercedes) budget for 2019 or 2020 was around 400 millions. And Haas have around 100 mechanics and engineers while Merc have nearly 300.
Lol, thats like saying teams like utd, arsenal, chelsea have more scouts, better facilities, better player mgmt than a derby county or bolton etc. Successful teams attract that like with anything in life. Ofcouse american sports are an exception coz of cap but even there, players keep forcing moves all the time to play for glamour frachises in big cities. So its never really an even field
Like the late Nikki Lauda said, "It's amazing with all these fecilities, you make a piece of crap like this." Considering the amount of money Ferrari pour into one season & get such terrible results, they are the worse team of all. What's even more disgusting is they spend more Mercedes, who are dominating F1 since 2014, & finish an avarage place of P4 in the championship. They can give all their money to little teams like Haas & Williams & better leave the sport of God sake. Anyway, great content mate, superb video. You rock more & more with each new video. Cheers!
Great video. Although I have a doubt as to how you included "Investments" as revenue. Don't the investors expect money in return which in turn will reduce the profit? Investments can be separate category but I am not sure if they can be included as revenue?
So does a team like Mercedes have to include their engines in their budget but teams like Red Bull won't because Honda make theirs because surely that would be unfair
Yep, well technically for Mercedes it goes under the High Performance Powetrains but it still goes under their budget. And in the case of Red Bull they have basically taken over from Honda 👍
The budgets presented are only constructor's budget, the engine side of it is the customers buying the engine, not the manufacturer's manufacture of it, that's is another budget which is unrestricted.
I've been following F1 since I attended the first Canadian GP at Mosport in 1967 won by Sir Jack Brabham. No-one has ever explained the business model of F1 as well as you. Now it makes sense. Thank you.
@@eljanrimsa5843 Yes, that I understand. And they still do as demonstrated when Mercedes spend more than they took in to win their constructor's titles. F1 was, with the exception of Ferrari and Lotus, a hobby for the wealth in those days, similar to owning a horse racing stable. The business of F1 began, for better or worse I believe, when Bernie Ecclestone took the reins. So is it a sport, hobby or business? Probably all 3 but mostly a business and I still love it.
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
How does this whole bitcoin thing work, I'm interested in it and I'm willing and ready to invest heavily in it but I'm gonna need an assistant from any trusted and productive professional
Haha you don't have to be surprised Smith Trading Services are really good and everyone loves genuine services, they've helped me recover what I lost trying to trade on my own
Great video I really enjoyed it, just some feedback. The colours used on the axis of the graph at 5:54 can be really difficult for people like myself with colour deficiency to see. It would be helpful to some if you could take that into consideration in your next videos
There has been a saying i remember from my childhood some 60 years ago. " How do you make a small fortune racing? Answer: Start with a large fortune.
Exactly right, that's the only way
It's the same with every racing, at all levels. Even the smallest category of racing on 2 wheels can get very expensive for a mere mortal. Such a shame, really.
Makes Hamilton’s achievements all the more greater
Íhhhhg
@@jimmyfranco43 good one
Mercedes: Spends over $145 million
FiA: Fines Mercedes for spending to much
Mercedes: Pays the fine and continues to over budget
FiA: *suprised pikachu*
I assume the punishment will be more than a fine...
Actually FIA be like verbal warning
I believe you forgot the season dsq
I think FiA then will come to take to themselves the money, that Mercedes spent to over budget to make their car better and faster to have easier chance to win again their boring 1 and 2.
Tha's why it's (MA) FIA
"if a team or driver has a terrible reputation, sponsors won't go near them."
*Shows Mazepin on screen*
Perfect XD
Of course 😂😂
you misspelled mazespin
he's the sponsor's son tho
Yet Grossjon the french ididot stays soooooo long
Hehe. Uralkali Likes Mazespin xD
I read the title as ‘How F1 fans make money’ that’s how broke I am.
😂😂 I feel you
Judith - Motorsport is an Insurance Business... If you make it your business it will bring you business #RacingPilot
And where o where do they decide ticket prices. Thats if we are ever allowed back into the arena.
broke enough to have internet.
Why waste your time with losers investors when you can earn up too $1200 with only $100 minimum investment
Ask me how to get started
you get on average 15-20 sponsors:
Haas 2021: *crying cat thumbs up*
😂😂😂
*cries in nikita mazepin
well haas surely has a huge sponsors judging from theirblivery
Daddy maze pins company will be giving quite a large amount of money
Sponsored by Russia
I think Ferrari spends their money on finding new ways to mess up.
😂😂
Italian engineering much? 😁
Hahaha
watch how quickly people like you jump off the mercedes bandwagon and join red bull or others when they start to win races. Or better yet, why dont people like you do some proper research and discuss why the FIA has allowed Mercedes to continue their development of their engine over 7 years ago when the same engine was used in another motoring championship? Giving Mercedes the edge over any other F1 team. Oh the politics of it all
@@torquethetalk We all know that the FIA authority figures are just supremely intimidated by Toto looming over them, glaring and then growling, "Fuck off." Obviously nothing shady to see there.
Most of teams don't care if they make loss,because their biggest gain is making the brand stronger to the consumer, very classic indirect profit 👍
Exactly 👍
No one is buying a car due to formula one
@@lazthegreat10I do
@@lazthegreat10he’s saying brand image, like their brand is more recognized
@@lazthegreat10 speak for yourself.
Honestly I’m really doubting if Mercedes can maintain their dominance with only $145m , it’s been so long since they haven’t had a near unlimited budget
Exactly, it's going to be incredible if they do...
i think they can
They'd still be on top but the gap between teams will be much closer like the 80s and 90s.
They and Ferrari (in particular) could be in big trouble. The gap between what they spend currently and what they will have to spend from 2022 is too large. Unless the vast majority of what they've been spending on has not been R&D or Engine related which I highly doubt. Its the last great hope for levelling the playing field.
@@redherring4119 they said their engine is. Much better than before but time will tell
The FIA is so concerned with bringing about greater parity through spending caps and technical limitations. However those FOM payments look like the most egregious factor in ensuring that parity is not possible.
They are changing the model of the prize money slightly too 👍
I was thinking the same thing when watching it. If the lowest teams gets a substantial amount lower to invest into R&D, how are they supposed to catch up?
"every team has around 15 to 20 sponsors", Haas: are you sure about that?
😂😂
🤣🤣
Steiner: "f@#king hell"
I'm Italian and this video came out on my home page by chance. Mamma mia how much quality is this video, I don't believe you have so few subscribers, keep it up and you will grow a lot. You are very good, a greeting from Italy (and always forza Ferrari)💪💪🔝
Thanks Edoardo! Really appreciate it 🙌
yeah. I agree. Really high-quality video. Well done!! I have just subscribed.
Ciao. Amico. Rome ?
@@aaryanrahman1833 No, Sanremo, a little town near France
The things Force India/Racing Point/Aston Martin have been able to do with a comparatively small budget is incredible
It really is, they are so efficient as a team generally
Aston Martin don't know what R&D is. They just copy what Mercedes does
Depends what your definition of a small budget is.
@@kyte2000 well you know WHy china is so successful?!
Man I really respect you for responding to almost all comments
Of course! It's the least I can do
6:23 on average 15
Haas2021 :pain
😬😬😬
How many do they have ?
This channel is going to explode one day..... Proud to be one of the earliest
Thanks! I hope so 🙌
When you look at Alpha Tauri, you also have to consider that main engine R&D and the costs associated with it is also shared with Red Bull cause of the Honda engine and Alpha’s status as a Red Bull junior team
Correct, and that would be involved in the production costs 👍
Amazing vid as always RP. I'm soo happy you decided not to take the "easy" path and just talk about current f1 topics that get the most views but instead you provide original well thought content. You're my fave f1 ytber, keep it up!
Thanks Emes! I find this a really interesting topic so I would have thought there's at least some put there that think the same! 😂👍
Normal F1 teams: sponsors and entering races
Racing point: Daddy’s cash will help
Pretty much 😂
Go look at Haas, they have basically no sponsors, Aston Martin has plenty
Nothing wrong with that.
Haas is going the same route with their new venture. One need only look at the one Haas driver who certainly hasn't merited his 2021 seat.
Shitty small man syndrome comment.
How is it an insult that someone’s parents are better than yours. Do some research, he’s clearly a talented young driver as well.
Basically like NASCAR. “Win on Sunday, sell on Monday.” It’s gonna be hard to top how exciting this year has been in F1, but I’m looking forward to the new regs. Plus nascar is going to new composite bodies to lower cost and even competition. These are all great things for race fans. Super video, thanks!
Absolutely, thanks for watching!
That Aston Livery looks Sick 🔥
I really does 😁
Even alpine livery looks good.
Looks like garbage
Indeed it does
@@drewp.weiner2473 lmao ur daft
The budget cap is one of the good move by FIA to have a fair competition
I really hope it works in the long run 🙌
@@TheMotorMouthPodcast lmao
Been watching F1 since the mid 80s. I think your videos are bloody brilliant. This was super interesting and well put together. Keep up the good work mate 💪
Thanks Johnny! Really appreciate it 🙌
The problem is when the entry level is to expensive the talent pool becomes smaller. It becomes "we are not competing against the best in the world but the best who could afford it." I am of course referring to drivers. How can anyone claim to be the best at something if the sport they are in has a lower and lower talent pool every year.
Agreed, grass roots needs to be more accessible
I was wondering about this, then it popped up in my suggestions, thanks man, great video!
Well thanks for watching Matthew 👍
This video is well-prepared with editing, finding excellent visual content and statistics. Thank you for your work. Love that and hope for the more updated version.:))
Thanks so much! I really appreciate you saying that 🙌
Hi RP, I'm surprised the Merchandise side wasn't mentioned as this is how teams make money as well ( and this side has been hit hard by the pandemic)
Well purely because it's such a small amount of revenue compared to the other factors 👍
@@TheMotorMouthPodcast is it really that small though? F1 and it's teams sell a huge amount of Merch at very large margins.
Care to speculate on numbers?
@@TheMotorMouthPodcast Fez sold $1.5 billion in global merch sales in 2019 record sales, so they would have received a fair payment from that alone, plus their $245million sponsorship deals then prize money so I'm sure they never broke even lol
@@eck0hcobra15 It should not be that big because the teams don't make the shirts themselves.
Repent for your sins and have faith in Jesus and you shall have eternal life in paradise
Thank you. I watched it this August 2022 an I loved it. I'm looking to understand all the technicalities in F1 like I do with football and other sports that are common here in Africa.
Awesome! I've got many more videos that are similar on my channel 👍
oh, most of them are break-even, thats a good thing in a competitive scene. Compared to football nowadays that clubs are milking their players for gaining more money.
The last point about the translation between F1 and road cars was spot on. You can see this in the priorities of certain car markets relative to F1 interest. In the UK, France, Germany, and Italy (and sometimes Japan), the consumer car market for performance cars mainly revolves around the engineering of the car (balance, handling, 0-60). In the US, the biggest performance car consumer market (and generally, the car market) are more focused on safety features, longevity of the engine, fancy interior, idiotic design that was put through a wind tunnel upside down, and embarrassing turbo noises.
F1 interest in the US must be top priority for the FIA if the future of performance cars is to be secure (look at how BMW has already cracked under US consumer demands to embarrassing enormous grill designs).
Exactly 🙌🙌
Yep I've been saving up to go buy a red bull car
American car design has always been atrocious, I would be embarrassed to own one. Bit like their Indycar series
So informative and clearly explained - thanks!
Thanks for watching!!
Great video ! Loved how you broke everything down in a simple way.
Just have to point out that nearly every single report online says Mercedes made a profit in 2019.
Keep up the great Vids !!
Thanks for watching Rizwan! Yeh I saw those reports too but I decided to use the figures from racefans.com which showed a loss 🤷♂️
@@TheMotorMouthPodcast oh that's cool then. I trust racefans know what they saying because it's an awesome site. Keep up the great content. Hope to see more amazing stuff now F1 is about to kick off again ! Have a great weekend 👍
As a marketing professional, I absolutely LOVE this video! Learnt so much from it never knew so many teams break-even and didn't have heavy losses compared to most major football clubs.
Thanks Jason! Glad to get feedback from an actual expert, and yeh I learnt a few things too!
You're referring to European foottball? I assure you no Anerican NFL team runs much risk of losing money
I thought Man U were owned by Americans
New Formula One fan here: this video was extremely helpful! Thank you very much.
Thanks for watching! 🙌
This is amazing information. I've been following F1 for 40 years and this is the first time I've heard an explanation of how this works. Great job. Thank you.
Brilliant! Thanks for watching 👍
Haas: we dont do that here
😂😂😂
Very well done and professionally made video mate! I'm very proud of your work, and I know the hard work will pay off. Remember me when you get famous please!😊
Thanks so much Vinayak! Really appreciate it mate 🙌
This is really a great video. Thanks for explaining the business side of F1.
But I think u have missed on the profits made by Mercedes, Ferrari on engine and gearbox supplies.
Thats included in the 'sponsors and tech partners' section 👍
Great video buddy loved every second 😂❤
Glad you enjoyed
This was just a first class video, together with what makes F1 so expensive. Just loved it :)
Thanks so much! 🙌
Great video, there are a few other revenue streams in there I reckon. Merchandise sales for popular teams will be significant. Licensing their brand to model company's and top companies etc will also bring addition revenue.
Yes there are many more but I wanted to be concise 👍
I never knew there was this much going on behind the sences.
Interesting
It really is, Formula 1 is a business after all!
0:00 flat earthers: money is a paid actor.
Yes 😂😂
Pay money to money? Yep, going round.
Earth is round.
Always wondered about the Business Plan ... now we have a basic idea - Thanks
You're welcome!
Amazing production quality, went to check how many subs you had and expected there to be at least 1 million.
I wish! I'm a fairly new channel 👍
I am going to be impressed that they can pull off an effective racing schedule with much less money due to the cap. Thankyou for the explanation and the layout of where the money comes from and where it goes.
Thanks for watching! 👍
Maybe short five minute videos expanding on each of the revenue streams
Yeh I could do 👍
Great breakdown of the financial aspect of F1. I really enjoyed the content here. A lot of what makes F1 interesting for me is the things going on behind the scenes as well as the actual racing. Keep it up!
Thanks Dyl! Really appreciate it 🙌🙌
Same here...love the 2sec Pits and total respect to the logistics teams ✅
Thank you for your work! Very informative and enjoyable to watch. I love Ferrari but I won't be surprised if they eventually cheat the budget cap too lol
Lol yeh fair enough 😂😂
This channel deserves wayyyy more than this
Thanks mate 🙌
Absolutely awesome job!
Thanks! Really appreciate it 🙌
Love these financial videos, also probably makes you more money in adsense hahaha keep em coming
Possibly 👀
What a well put together video, thank you for simplifying things in an easy to digest format. Top-level production quality as well.
Thanks a lot! Really appreciate it 🙌
Good job, pretty good video! It would be really interesting to have a similar one analyzing how FOM makes money as well and what are the figures involved.
Could definitely do that in the future! 👍
Nice video mate do bring these kinds of videos showing financial side of sports team.
Thanks for watching!
Yes. I like the Information on the financial aspect of racing. More please.
I've got many more videos about exactly that!
This video was so interesting! It’s crazy the money they’re playing with, unreal amount. I still think the long standing payment is way too high and so irrelevant!
It really is mad how much money these teams have! Thanks Keira 🙌
irrelevant? no ferrari means no f1. it is simple as that.
@@gokhansenaolivia no one said Ferrari shouldn’t be here, Ferrari don’t deserve millions of pounds more.
It is not an irrelevant payment if it is for everyone. Total pot divided by the total number of seasons the teams are competing in f1 and then distribute these parts among the teams equal to the number of seasons they have been competing.
That way you value your heritage and benchmark and support future loyalty. In that scenario Ferrari would still take the bulk of the money, but on merit. Now it is very unfair.
Ferrari dislikes this comment.
I think f1 might be the hardest sport to compete as an owner. I mean, there are some team in the past that join but ultimately fail. I wonder if teams such as monaco or panthera that wanted to join F1, how long does it take to reach the level of top teams or midfield teams
Absolutely, the sheer millions even just to join the sport is massive. But I guess that's the point, they don't want loads of teams 👍
ask Haas.
Yeap like my late dad said, F1 is essentially a real-life advertisement for most teams to intice viewers to buy their car brands. It's difficult to calculate that translation process.
Also, the technologies innovated in racing eventually make it to mainstream car engineering for various benefits.
Absolutely, your dad was a smart man!
I mean you can't buy a red bull or haas
That is one the best videos i have ever watched. Splendid!
Thanks a lot mate! 🙌
This is all new to me as I don’t really follow the sport. This was an insightful breakdown.
Great! Glad you enjoyed it!
Great explanation, would love to see a breakdown of each spending/revenue category. Keep up the good work :)
Thanks! Really appreciate it 🙌
with the budget cap, isn’t there a clause that people such as lewis aren’t calculated? something about top personnel excluded? i think remember that from a broadcast
Yep. Driver and director salaries aren't included 👍
It's drivers plus to 5 or 6 other top salaries. They can spend through the roof on those.
One thing I'd like to see a video on is the discussion that lead to the absolutely bizarre and unprecedented "historis committment" payment to Ferrari. The company that has gained the most from F1, which is most tied to the series, whoe entire business model is linked to winning races, needs a massive bribe, equivalent to more than the Constructors championship pays? What pressure did the prancing stallion apply to get that awarded?
It always puzzled me how teams made so much money from such a "small" fan base (compared to other major sports). thanks for the video, really clear
Well Formula 1 is one of most viewed sports in the world so I reckon it makes sense
@@TheMotorMouthPodcast soccer is the most watched and most popular sport in the world
@@bumerstudent He said "one of"
If you Repent for your sins and have faith in Jesus and you shall have eternal life and joy in heaven ✨️ 😊😮
Great info thanks.. A big fan from Kudat Sabah Malaysia
Thanks for watching!
Huh, who knew. Very interesting. I always wondered about the financial structure of F1 and how the teams made money. Thanx for that! I'm subscribed.
Thanks for watching Rob! Glad you enjoyed 👍
i love how lewis's paycheck is in its own category
Haha it is quite large
Since all drivers pay is exempt from the budgets, that where it belongs. A bizarre decision, by presumably brought in under pressure from the drivers themselves
I'd imagine one of the loopholes the teams are going to use is to have the sponsor contracts split so that they'll partially sponsor the drivers directly allowing them to cut costs on driver salaries without touching the drivers earnings.
Well there are no rules on how much teams earn, it's a cap on how much they spend 👍
There would be no reason to do that. Since drivers salaries are on the dozen or so exemptions from the budget, they have no really good reason to artificially low them. In fact, I won't be surprised to see, the high priced teams try something like(depending on how tightly written are the rules) employ their drivers as partners. Say" I'll pay you 100 million to drive, but you personally have to fund design testing in the wind tunnels. You get $100 million if you show up with a fully compliant rolling chassis. Or with a complete power unit (for those teams buying in engines) If there is one thing F1 teams are all experts at, it's getting around inconvenient rules.
Huge fan of Ferrari. Saw Shell on their car, been filling my tank and change oil with Shell. Saw Kaspersky, easy choice for my PC Antivirus. Saw Lenovo when in need of new laptop, instant pick. Schumi's Ferrari was Bridgestone loyalist, have to give my car the same tyres as my idol.
Exactly! You are a perfect example 😂
Thanks for the explanation of profit around the 2 min mark. I had no idea that's how it worked
Quality stuff 🤔
Well thanks for watching and I'm glad you enjoyed 👍
@@TheMotorMouthPodcast Were you being as sarcastic as me?
Seriously though, the video overall was good but that was a WTF moment. Oh, and the sarcastic sounding references to Lewis Hamilton's salary/pay cheque. You may not have meant anything by it but your tone at both mentions implied you have an issue with it.
It's called humour mate 👍
@@TheMotorMouthPodcast Then you need to work on your delivery.
*I feel like a kid again! Awesome video.*
Thanks for watching!
Who do you think will prevail McLaren Riccardo or Aston Seb?
I think Ricciardo will do better at McLaren but it will be interesting either way
Bruh, F1 is definitely pay to win too. The big boy (Mercedes) budget for 2019 or 2020 was around 400 millions. And Haas have around 100 mechanics and engineers while Merc have nearly 300.
Correct, it's pay to play then also pay to win 👍
All team sports are usually pay to win..
Lol, thats like saying teams like utd, arsenal, chelsea have more scouts, better facilities, better player mgmt than a derby county or bolton etc. Successful teams attract that like with anything in life. Ofcouse american sports are an exception coz of cap but even there, players keep forcing moves all the time to play for glamour frachises in big cities. So its never really an even field
ur a ledgend mate
Thanks mate 😂
Wow...well ✅👍 done ..clear & concise😎 as a numbers person, it made sense ...
That I need for work for F1 😅👍
Thanks! 🙌
Very interesting, I learned a lot. We’ll see how it goes with the new budget.
It will be interesting, but Aston Martin doing well is a good sign
on average an f1 team has around 15 sponsors
haas: *we don’t do that here*
😂😂
What about the audience who paid their money to come and watch race in terms of revenue?
That will go to the circuits and Formula 1 itself 👍
6:23 on average 15 sponsers
Haas in 2021 : alone again! Naturally
Great video yet again 👍
Yeh I think Haas have 5 😂
@@TheMotorMouthPodcast yep
Sadness everywhere😬
Really good video - and nice summary of the costs explained.
Thanks Zak! Appreciate it 🙌
By selling $50 hats and $200 hoodies
😂😂😂😂😂
Hahaha that aswell
Like the late Nikki Lauda said, "It's amazing with all these fecilities, you make a piece of crap like this." Considering the amount of money Ferrari pour into one season & get such terrible results, they are the worse team of all. What's even more disgusting is they spend more Mercedes, who are dominating F1 since 2014, & finish an avarage place of P4 in the championship. They can give all their money to little teams like Haas & Williams & better leave the sport of God sake.
Anyway, great content mate, superb video. You rock more & more with each new video. Cheers!
Thanks Arun! Yeh the whole Ferrari budget thing is just so wrong if you ask me...
@@TheMotorMouthPodcast yep, the feeling's mutual. 😌😌
You can't say that! It'sa Ferrari!
@@eMeSCZ 😂😂
@@eMeSCZ Its a shitbox
Says "dollars" and £ on the screen 🤦♂️
Sorry, my mistake 😬🙋♂️
Mate a mil views, finally getting the well deserved recognition
Thanks so much mate! 🙌
Perfect well explained... In layman terms... Good on you mate
Thanks a lot! Really appreciate it 🙌
Great video. Although I have a doubt as to how you included "Investments" as revenue. Don't the investors expect money in return which in turn will reduce the profit? Investments can be separate category but I am not sure if they can be included as revenue?
You could see investment similar to sponsorships. The Mercedes company sponsors the Mercedes race team 👍
9:06 doesn’t williams make a +25m profit?
Nope, 100 mil - 125 mil equals -25 mil 👍
So does a team like Mercedes have to include their engines in their budget but teams like Red Bull won't because Honda make theirs because surely that would be unfair
Yep, well technically for Mercedes it goes under the High Performance Powetrains but it still goes under their budget. And in the case of Red Bull they have basically taken over from Honda 👍
The budgets presented are only constructor's budget, the engine side of it is the customers buying the engine, not the manufacturer's manufacture of it, that's is another budget which is unrestricted.
All engine manufacturers have to offer engines to anyone for a consistent price. Either way it all come through
I've been following F1 since I attended the first Canadian GP at Mosport in 1967 won by Sir Jack Brabham. No-one has ever explained the business model of F1 as well as you. Now it makes sense. Thank you.
Well thanks for watching! Glad to be of help 👍
There wasn't a business model in 1967. Teams burned all the money they could get their hands on.
@@eljanrimsa5843 Yes, that I understand. And they still do as demonstrated when Mercedes spend more than they took in to win their constructor's titles. F1 was, with the exception of Ferrari and Lotus, a hobby for the wealth in those days, similar to owning a horse racing stable. The business of F1 began, for better or worse I believe, when Bernie Ecclestone took the reins. So is it a sport, hobby or business? Probably all 3 but mostly a business and I still love it.
Very well put together. Keep up the great work The Racing Pilot
Thanks Sam! 🙌
"terrible reputation" - shows Nikita Mazepin. LMAO !!!!
Am I wrong 😂😂
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
How does this whole bitcoin thing work, I'm interested in it and I'm willing and ready to invest heavily in
it but I'm gonna need an assistant from any trusted and productive professional
You don't really need someone to tell you how to invest your coins, you can make research on your own
and also try doing it yourself first.
Wow I'm just shocked you mentioned and recommended Smith Trading Services, I thought people don't
know them... they're really awesome!
Haha you don't have to be surprised Smith Trading Services are really good and everyone loves genuine
services, they've helped me recover what I lost trying to trade on my own
Same here it's four months now I started investing with them and it's been a good experience
"F1 is a marketing platform"
Donald Trump: I want to put my face on Haas for the next election 🤣🤣🤣🤣
Don't even tempt him 😂😂
Very informative and therefore a must see for F1 fans
Thanks a lot 🙌
Amazing video. Just what I was looking for
Great thanks for watching!
Average Sponsor joke incoming:
Average sponsors: 15-20.
Haas: *angry russian sounds*
😂😂
Russian man 🅱️ad
How do Formula 1 Teams Make Money?
Answer: No they don't.
Pretty much
Non-profits up in here!
Why you gotta violate mazepin like that 😳😂😂😂😂
Because he's violated many more 😂
1 million views ❤️ Awesome job 🤗🤗👏👏👏🙌🙌🙌
Thanks so much! 🙌
Great video I really enjoyed it, just some feedback. The colours used on the axis of the graph at 5:54 can be really difficult for people like myself with colour deficiency to see. It would be helpful to some if you could take that into consideration in your next videos
Sorry about that, will take that into consideration 👍
@@TheMotorMouthPodcast Awesome thanks guys
Nice pls pin this love your vids
Thanks mate 🙌🙌