In 2016 when Liberty Media bought Formula One, the company said it had a number of ideas it wanted to implement into the sport including bringing In a new generation of fans to the sport and get the F1 more exposure in the U.S.
Now it seems that Liberty Media is also looking at the financial rewards that F1 hands out to the teams, in particular scrapping the £80 million Ferrari are reportedly paid in their annual bonus.
According to Forbes, In an effort to even the playing field, Liberty Media are considering dividing that £80 million amongst Ferrari’s rivals. The theory is, according to the report, that a more financial balance along the walls of the F1 paddock would prevent the sport from being dominated by one team, as we’ve seen in several years past.
“If you’re Ferrari, you have enormous sponsorship revenue that goes directly to you. That’s going to be impacted more positively by great races. So thinking about balancing the team payments, so they’re a little more balanced and creates more fairness, has to be weighed, in Ferrari’s mind, I would expect, by the fact that creating a great platform helps our sponsorship revenue, too, so there’s give-and-take,” Liberty Media chief executive Greg Maffei said.
With F1 now having various media deals for pay per view TV rights, it’s no longer reliant on just sponsorship, this could indeed play a factor in team’s overall prize money for competing being spread more evenly.