Do Formula 1 Drivers earn too much?

Formula 1 is a lot about money because it is largely dependent on sponsors. The drivers are generally the employees who earn the most from each team. This is not going to change with the budget ceiling in the future because salaries are not included in the 175 million that each team can (start to) spend per year. Will this have to change in the future?

What do the current drivers earn?

First of all, there should be a picture of what the current group of drivers in Formula 1 are racing together. Viewing this data is difficult because it is recorded in an archive of the FIA in Geneva. The so-called Contract Recognition Board. Only six lawyers have access to this data should any contractual disputes arise. Racefans.net has made an estimate of the current income of the twenty drivers. The amounts are in dollars.

Lewis Hamilton 40 million

Valtteri Bottas 8 million

Sebastian Vettel 30 million

Charles Leclerc 10 million

Max Verstappen 25 million

Alexander Albon 2.5 million

Carlos Sainz 8 million

Lando Norris 2 million

Esteban Ocon 5 million

Daniel Ricciardo 20 million

Daniil Kvyat 2 million

Pierre Gasly 2 million

Sergio Perez 8 million

Lance Stroll 3 million

Kimi Raikkonen 5 million

Antionio Giovinazzi 1 million

Romain Grosjean 7 million

Kevin Magnussen 5 million

Nicolas Latifi 1 million

Geroge Russel 1 million

There are a few absolute top earners in Formula 1 where Lewis Hamiltin is offcourse one of them. Incidentally, the estimates of these drivers' fees are calculated excluding any performance bonuses.

Twelve of these drivers will have to negotiate a new contract at the end of this year, should they qualify for it. Because of the budget ceiling, the negotiations will not be conducted any differently as the drivers' salaries will not fall, binding the 175 million. The maximum amount a team can spend from next year onwards excludes management and driver salaries, marketing costs, hospitality costs and directors' pensions.

Can the salaries (this year) still be justified?

The question is whether these fees are justifiable or should they also fall within the budget ceiling? In that case, it concerns the top earners in particular. Lewis Hamilton could even earn almost double with bonuses. At the same time he is the reason that Mercedes is so successful. In Mercedes' 2018 annual report, the total amount they spend on salaries is around 108 million. Which means that Hamilton and Bottas account for almost half. For most teams, salaries are the highest cost item

The drivers are not at all to blame because they are offered these kinds of amounts. Moreover, most drivers might be worth it because of the marketing value and the merchandise. But with Formula 1 we enter a time where awareness of spending is preached. This is what we have chosen to do from next year onwards. Can these salaries of the top earners still be justified then? Or do we have to reduce them slowly. Nothing more can be done about the current contracts, but rules could be introduced for the years to come.

Will Formula 1 have to do something about the exorbitant salaries of some drivers in the future? Or are they the reason for their success and are they worth these amounts? As twelve drivers will no longer have a contract at the end of the year, this may be the time to have this discussion. It is a difficult moral discussion but what do you think? Let us know in the commentsection!