F1 PRIZE MONEY: McLaren beaten by THREE rivals despite winning 2025 title… Read more

F1 Prize Money: McLaren beaten by THREE rivals despite winning 2025 title

 

By Hugo Harvey

Saturday, 28 February 2026

 

Formula 1’s financial landscape has taken a fascinating twist after fresh figures revealed that reigning world champions McLaren were only the fourth-highest earners from the sport’s 2025 prize pot despite sweeping both championships on track.

 

The numbers, published in the annual financial report by Liberty Media, confirm that Formula 1 generated a record-breaking $3.9 billion in revenue during the 2025 season a 14 per cent increase on the previous year. From that total, a staggering $1.4 billion was allocated to the teams as prize money.

 

Yet in a surprise outcome, it was not McLaren nor even the 2025 drivers’ champion Lando Norris who saw their team top the earnings chart. Instead, Ferrari emerged as the biggest financial winner of the season.

 

Ferrari lead the way financially

 

According to industry estimates, Ferrari collected approximately $277.7 million in prize money relating to the 2025 payouts. The Scuderia were followed by Mercedes with around $230.7 million, while Red Bull Racing secured roughly $202.9 million.

 

McLaren, despite claiming the 2024 constructors’ championship and following it up with another title-winning campaign in 2025 alongside Norris and teammate Oscar Piastri, earned an estimated $165.8 million placing them fourth overall in financial returns.

 

The apparent contradiction has left many fans puzzled. How can a back-to-back championship-winning team be out-earned by three rivals?

 

Why McLaren were beaten

 

The answer lies in the structure of Formula 1’s complex prize money distribution system.

 

Under the terms of the Concorde Agreement the binding commercial contract governing the sport prize money paid in 2025 was primarily based on the 2024 constructors’ standings. On the surface, that should have favoured McLaren, who lifted the 2024 constructors’ crown.

 

However, performance payments in F1 extend far beyond a single season’s results. A substantial portion of the prize pot is influenced by historical success, particularly over the previous decade. Teams that consistently finished in the top three during the past 10 seasons benefit from significant performance-based bonuses.

 

That formula heavily favours outfits like Mercedes and Red Bull, both of whom dominated large parts of the hybrid era. Mercedes’ run of constructors’ titles from 2014 to 2021 continues to deliver financial rewards today, while Red Bull’s sustained competitiveness across the last decade also bolsters their earnings.

 

Ferrari, meanwhile, benefit from a unique historical payment widely understood to be a five per cent share of the prize pot in recognition of their long-standing presence and importance to the championship.

 

McLaren’s resurgence has been rapid but relatively recent. Prior to their breakthrough in 2024, the Woking-based team had largely operated as a midfield contender throughout the 2010s and early 2020s, with only one top-three finish in the constructors’ standings between 2014 and 2023 a third-place finish in 2020.

 

As a result, their historical performance bonuses lag behind those of Ferrari, Mercedes and Red Bull.

 

Liberty Media’s booming F1 empire

 

Since acquiring Formula One Group in 2017, Liberty Media has transformed the sport commercially. The growth has been fuelled by aggressive global expansion, new race markets, and the Netflix docuseries Drive to Survive, which has dramatically increased F1’s popularity  particularly in the United States.

 

The $3.9 billion revenue total for 2025 marks another record year for the sport, reinforcing its status as one of the fastest-growing global sporting properties.

 

Under the revised 2021 Concorde Agreement, all teams on the grid are now entitled to a share of prize money, unlike in previous eras when only the top 10 constructors qualified. With 10 teams currently competing, this change has had limited practical impact so far, but it will become relevant in 2026 when Cadillac joins the grid as an eleventh entrant.

 

A championship shift still in progress

 

While McLaren may feel short-changed in relative terms, their financial position is expected to strengthen if their competitive success continues. Sustained top-three finishes over multiple seasons would significantly increase their share of long-term performance bonuses in future prize allocations.

 

For now, though, the 2025 financial figures underline the lingering advantage held by F1’s established powerhouses.

On track, McLaren are the team to beat. Off it, Ferrari remain Formula 1’s biggest financial force.

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