At the start of each season, Formula One Management projects revenues from three streams - hosting fees, media rights, and other income avenues, such as hospitality and trackside sponsorship. FOM's 2016 turnover is estimated at $1.83 billion, with underlying revenues estimated at $1.38 billion. It then distributes approximately 68 percent of projected underlying revenues among the qualifying teams.
That figure of $940 million is 3.5 percent down on last year's figure due to anticipated increases in marketing costs in line with FOM owner Liberty's plans for the sport, and a reduction in the number of grands prix from 21 to 20.
Revenues are distributed across the 10 teams through nine monthly payments from April, with a final "check" payment - when definitive revenues have been calculated – in March 2018.
The amount each team receives is based on a series of factors, including performance over the course of the season, past success and special agreements.
The table below, sourced by Motorsport.com, details how revenues are disproportionately distributed.
2016 FOM team earnings in $m – disbursed over 10 instalments during 2017, in order of payout*
| Team | Col 1 | Col 2 | Col 1+2 | LST** | CCB*** | Other | Total | 2016 ± | 2016 Class |
 Ferrari | 36 | 41 (13%) | 77 | 68 | 35 | 180 | -9% | 3 | |
 Mercedes | 36 | 61 (19%) | 97 | 39 | 35 | 171 | - | 1 | |
 Red Bull | 36 | 52 (16%) | 88 | 39 | 35 | 161 | +12% | 2 | |
 McLaren | 36 | 31 (9%) | 67 | 30 | 97 | +18% | 6 | ||
| Williams | 36 | 33 (10%) | 69 | 10**** | 79 | -9% | 5 | ||
 Force India | 36 | 36 (11%) | 72 | 72 | +7% | 4 | |||
| Toro Rosso | 36 | 23 (7%) | 59 | 59 | +3% | 7 | |||
 Renault | 36 | 16 (5%) | 52 | 52 | -19% | 9 | |||
 Sauber | 36 | 13 (4%) | 49 | 49 | -10% | 10 | |||
 Haas ***** | 19 (6%) | 19 | 19 | - | 8 | ||||
| Total | 324,5 | 324,5 | 649 | 68 | 143 | 80 | 940 | 965 (-3,5%) |
Column 1 payments are calculated based on a team's classification over two of the past three years, while Column 2 payments are based solely on a team's 2016 classification, with only the top 10 qualifying. The Column 1 pot is divided equally among all qualifying teams, with each estimated to earn $36m.
Had Manor survived, that figure would have been $32.5, $1 million down on the previous season, but following the outfit's closure, its payment was shared equally with the other nine qualifying teams. As Haas has only completed one season, it does not qualify for Column 1 payments.
Column 2 is calculated on a sliding scale from first to 10th place with first receiving 19 percent of the fund, sixth nine percent and 10th four percent.
Ferrari, Mercedes, Red Bull, and McLaren have agreed separate deals for constructors' championship bonus payments. Ferrari also receives a long-standing team payment while Williams collects a heritage payment. Red Bull receives an extra payment for being the first team to sign the current bi-lateral agreement, which runs to 2020, and this totals $35 million.
After meeting its agreed target of two world championships, Mercedes earns a special annual payment that matches Red Bull's. Ferrari will receive $180 million in total, representing almost one fifth of the total 'pot' but $12 million less than last year.
That's $108 million more than Force India receives, despite the latter finishing just one place adrift in the constructors' championship. Mercedes won both the drivers' and constructors' championships for the third successive year, but still received $9 million less than Ferrari.
Force India and Williams both finished ahead of McLaren in the standings, but each receive less courtesy of McLaren's CCB payment. If the pot was shared out equally, each team would get $94 million. That would leave Ferrari's payment down by $86 million while Sauber, the final team to qualify for Column 1 and 2 payments, would receive an extra $45 million.
Motorsport.com contacted FOM, which refused to comment on the revenues.
Key:
* Figures rounded off for simplicity
** Long Standing Team
*** Championship Constructor Bonus (double champions)
**** Heritage Bonus
***** Haas does not qualify for Col 1 income until after second season (2017)
Co-author: Lawrence Barretto, Autosport F1 Reporter
