F1 HEADS BE­GIN WORK ON NEW PAY STRUC­TURE

Motor Sport News - - Racing News - Pho­tos: LAT Bri­tish GP sup­ports pre­view, p23 WHAT TEAMS EARN IN 2016

Bernie Ec­cle­stone has be­gun work on a re­vised fi­nan­cial struc­ture for For­mula One, which will re­ward teams greater prizes based on their re­spec­tive performance.

Un­der F1’s cur­rent fi­nan­cial agree­ment, which runs un­til 2020, the larger teams re­ceive a greater share of the sport’s rev­enue, with many also re­ceiv­ing bonus pay­ments.

Teams such as Fer­rari and Wil­liams re­ceive her­itage pay­ments, with Fer­rari’s be­ing larger due to its longer stay in the world cham­pi­onship. Ad­di­tion­ally Fer­rari, Red Bull, Mclaren and Mercedes all re­ceive bonuses for sign­ing the cur­rent bi­lat­eral agree­ment.

Red Bull and Mercedes also re­ceive ex­tra cash, hav­ing ne­go­ti­ated bonuses off the back of their re­spec­tive suc­cess in the Con­struc­tors’ Cham­pi­onship.

There have long been fears that the struc­ture, which favours only the larger teams, is da­m­ag­ing for smaller out­fits, with squads like Force In­dia, Sauber and Manor in­creas­ingly vo­cal about the skewed struc­ture.

Speak­ing to re­porters in Aus­tria, Ec­cle­stone said he was work­ing on a new pay­ment sys­tem for teams, which would in­stead only pay out to squads who had earned the bonuses through performance.

Ec­cle­stone said: “It’s go­ing to be sorted out in a way where the chunk of money they get on top, they won’t get… well, they’ll get it if they win.

“We can’t pay the peo­ple if they are not win­ning and what I don’t want is to pay peo­ple what would ef­fec­tively be start money. At the mo­ment they [smaller teams] have no chance with this money that we give them. But we are go­ing to make sure they are in a po­si­tion where they do [have a chance] if they per­form.

“We sort of look af­ter – if that’s the right word – four or five teams [un­der the cur­rent bi­lat­eral con­tracts] be­cause they have had a long-term com­mit­ment with us and they signed four or five years ago to stay un­til 2020. So they needed some­thing for do­ing it.”

Ec­cle­stone added that he be­lieved Fer­rari should re­tain an ad­di­tional pay­ment as it has been ever-present in the world cham­pi­onship.

Mercedes re­ceives a bonus pay­ment earned from win­ning two con­struc­tors’ ti­tles. Team head Toto Wolff said: “Maybe the model Mercedes got in 2012 is a base for how it can be in the fu­ture. We got an ad­di­tional prize fund be­cause we per­formed. We got a hur­dle built in: if you win those cham­pi­onships, you can in­crease your in­come.”

The new fi­nan­cial frame­work is ex­pected to be ironed out this year and will come into ef­fect in 2021. If a new struc­ture were in­tro­duced ear­lier it would re­quire all cur­rent teams to agree on the change.

Fer­rari has historic pay agree­ment Fer­rari, Mercedes and Red Bull top earn­ers

JULY 6 2016

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