The world of Formula 1 is as much about financial power as it is about racing supremacy. In 2024, the sport’s top drivers combined to rake in an astonishing $317 million in salaries and bonuses, marking a 23% increase over the previous year. While the tracks are alive with speed and strategy, the financial race among drivers and teams continues to escalate.
Max Verstappen remains at the forefront of this financial surge, solidifying his dominance both on and off the grid.
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Max Verstappen: Reigning Supreme on the Track and at the Bank
For the third consecutive year, Max Verstappen has claimed the title of Formula 1’s highest-paid driver. The 27-year-old Red Bull Racing superstar earned an estimated $75 million in 2024, consisting of $60 million in salary and $15 million in performance bonuses. This represents a significant leap from his 2023 earnings and highlights his unmatched consistency and success.
Verstappen’s dominance in Formula 1 extends beyond the financial realm. In 2023, he achieved a historic season with 19 wins out of 22 Grand Prix races. While his 2024 championship victory was more closely contested—winning by a relatively modest 63 points—the financial rewards were more resounding. This combination of on-track excellence and financial acumen solidifies Verstappen’s position as a central figure in modern motorsport.
Lewis Hamilton: A Veteran’s Enduring Legacy
Despite being 39 years old, Lewis Hamilton remains a formidable force in Formula 1. The seven-time world champion earned an estimated $57 million in 2024, comprising $55 million in salary and $2 million in bonuses. While Hamilton has faced increasing challenges from younger competitors like Verstappen and Lando Norris, his enduring appeal and talent continue to attract lucrative contracts.
Hamilton’s decision to join Ferrari in 2025 sent shockwaves through the paddock. The move is expected to bring new challenges and opportunities for both Hamilton and Ferrari, potentially leading to a significant increase in his earnings in the coming years.
Rising Stars and Lucrative Contracts: Lando Norris and the Next Generation
Lando Norris emerged as one of the standout performers in 2024, both on the track and in financial rankings. The 25-year-old McLaren driver secured his first four Grand Prix victories this year, propelling him to third place in the earnings race with $35 million. This figure marks a dramatic rise from his $15 million earnings in 2023 and underscores the value of performance-based bonuses in driver contracts.
Performance-Driven Contracts: A Financial Game-Changer
Norris’s financial leap can be attributed to his $12 million base salary, bolstered by approximately $23 million in bonuses. These figures highlight a broader trend in Formula 1, where driver contracts increasingly tie compensation to on-track success. While established drivers at top teams benefit from guaranteed salaries, bonuses for race wins and championship performances provide substantial earning potential for rising stars.
The Bigger Picture: Formula 1’s Financial Boom
The rising earnings of Formula 1 drivers mirror the sport’s unprecedented financial growth. According to Liberty Media, Formula 1’s central revenue reached $3.2 billion in 2023, a 25% increase from the previous year. This influx of capital has translated into higher prize money for teams, increased sponsorship opportunities, and elevated driver salaries.
Key Drivers of Financial Growth
Several factors contribute to Formula 1’s financial boom:
- Expanded Global Appeal: The sport’s growing popularity, fueled by Netflix’s Drive to Survive series and increased engagement in key markets like the United States, has driven sponsorship and broadcasting revenue.
- Cost Cap Exemptions: While the 2021 cost cap limits team spending on car development, driver salaries remain exempt, allowing wealthier teams to invest heavily in securing top talent.
- Team Valuations: The average value of Formula 1 teams rose to $1.88 billion in 2024, reflecting the sport’s robust financial health.
These factors create a favorable environment for drivers to negotiate lucrative contracts, particularly those with proven track records of success.
The Future of F1 Earnings
As Formula 1 continues to grow, driver earnings are poised to climb even higher. Several developments hint at a lucrative future for the sport:
Charles Leclerc’s Ferrari Deal
In January 2024, Charles Leclerc signed a new contract with Ferrari that promises a substantial pay increase for the 2025 season. With his consistent performances and growing stature within the team, Leclerc is expected to join the ranks of the sport’s highest earners.
Hamilton’s Move to Ferrari
Lewis Hamilton’s surprising decision to leave Mercedes for Ferrari could reshape the financial dynamics of the sport. Ferrari’s resources and global brand appeal, combined with Hamilton’s unparalleled experience, create the potential for record-breaking earnings.
Emerging Stars
The rise of younger drivers like Norris and the continued development of talents such as George Russell and Oscar Piastri signal a new era of competition, both on the track and in contract negotiations. As these drivers establish themselves as championship contenders, their earnings are likely to reflect their growing influence.
