How much each Formula 1 team is paying to race in 2024 season?

Formula 1 has always been linked to expensive operations, and in 2024 this association won’t alter. Teams must pay hefty fees to be permitted to participate on the grid, therefore there are significant financial risks. The cost of entrance for each team is determined by a complicated algorithm that accounts for each team’s performance from the previous season.

Let’s have a look at the finances of racing in Formula 1 to have a better idea of the real cost of competing at the highest level of motorsport.

Understanding the Entry Fee Structure

The ‘Concorde Agreement’, which was introduced in 2013, significantly changed the way admission fees were determined. This agreement states that each team’s entry cost is set by the amount of points they scored in the previous season.

The baseline fee stands at a substantial $657,837, with an additional $6,575 charged per point earned. However, there’s an exception for the constructors’ champion, who must fork out $7,893 per point. These figures have skyrocketed over the years due to inflation, making it increasingly expensive for teams to secure their spot on the grid.

Entry fees Formula 1 2024

Record-Breaking Entry Fees in F1’s History

Red Bull Racing had to pay the biggest entry fee in Formula 1 history for the 2024 season. Red Bull broke Mercedes’s previous record in 2016 with an astounding $7,445,817 charge.

This amount consists of a $657,837 basic fee plus an extra $7,893 for every point achieved in the 2023 campaign. With an astounding 860 points scored in 2023, the club performed exceptionally well, which is what caused this large charge.

Red Bull Team Principal Christian Horner acknowledged the price as a “luxury problem” because of the team’s strong scoring, although he had mixed sentiments about it. 

This enormous amount is a direct result of Red Bull’s incredible season-long play in which they set a record for the most points. Even though this financial load appears enormous, it highlights how expensive it is to succeed in Formula 1.

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