Shorter season sees Mercedes entry fee cut by $1 million

The reduction in the number of races held in 2020 had led to a corresponding cut in the amount that teams will have to pay the FIA to take part in next year's Formula 1 world championship.

This season had originally been meant to consist of 22 races, more than any previous seasons. But disruption caused by the outbreak of the coronavirus pandemic reduced that to just 17 Grands Prix packed into 161 days.

Since the sport's financial restructuring in 2013, the amount that teams have to pay to take part in the season are calculated based largely on the constructors championship points won the previous year.

But the lower number of races in 2020 means that there have been fewer points on offer, and this is reflected in the entry fees for next season.

• Read also: Mercedes reveals cost of winning 2019 title

Mercedes finished 2019 with 739 points but this has dropped to 573 this season. Similarly, Ferrari finished last year in second place with 504 points but this year's runners up Red Bull ended up with 319 points.

The calculation meant that Mercedes had to pay $5,490,812 to take part in this year's championship, which includes an initial flat fee of $556,509. As the reigning champions they then had to pay an extra $6,677 per point won in 2019.

Other teams pay a levy of $5,563 for each point, which means that Ferrari had to pay total entry fees of $3,360,261 after finishing in second place and Red Bull a total of $2,876,280.

But with the existing formula set to remain unchanged, the lower number of points means that this year Mercedes will be asked to pay up a 'mere' $4,382,430 - a drop of over a million dollars.

This year's runners-up Red Bull will be asked for $2,331,106, while a dismal season for Ferrari means they will only have to find $1,285,262 from the petty cash at Maranello.

Finishing in third place in the championship this year, McLaren's contribution to the FIA's coffers rises from $1,363,144 to $1,680,235. But they will also get a bigger share of the prize money for finishing higher in the final standings.

There's no such trade-off for the FIA as a whole however. The lower fees being paid by teams, along with a loss of other incomes revenue streams as a result of the disruption by coronavirus means that the governing body's accounts will inevitably take a big hit.

2021 fee calculations

2020 fee calculations

All teams pay basic flat fee of $556,509

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