Formula 1’s introduction of a new prize money distribution system should help midfield teams challenge the sport’s front-runners, says managing director Ross Brawn.
An aspect of the sport’s proposed new commercial agreement that has been somewhat-overlooked in the current climate, Brawn believes that an improved system of financial payouts will be just as beneficial to the smaller teams as the associated changes to the sporting and technical regulations.
“There’s going to be a much more equitable prize fund in the new agreement so the midfield teams in particular are going to be much better off in terms of their portion of the prize money,” Brawn told Sky Sports F1.
“So it’s being balanced in every direction. We’re reducing the amount of money that can be spent in Formula 1 and we’re improving the distribution of the prize fund more evenly among the teams.
“A good midfield team should be able to score podiums, maybe a win, and it should make a small profit. If we can achieve that we’ll have a very sustainable future.”
Under the current system in place, five teams — Ferrari, McLaren, Mercedes, Red Bull and Williams — are given bonus payments outside what they earn based on their performance, while the Scuderia is known to get a further “heritage” payment for having participated in the sport since the inaugural season in 1950.
How he will reconcile these payments with his new system, Brawn did not clarify, but suggested F1 owners Liberty Media were committed to supporting the smaller teams, as it has already done amidst the COVID-19 pandemic.
“We’re working very hard in a fair and equitable way amongst the teams. I think Liberty have shown their strength to create the funds available and we just need to see how things now develop.”