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Added June 8th, 2015 by Ian

Formula 1 prize money increases double that of English Premier League

Even though the English Premier League raked in record profits of about $5 billion for the 2013/14 campaign, the increase in prize money handed out lags behind that of Formula 1 racing. Over the past seven years statistics show that F1 prize money has increased more than that of the Premier League. However, several racing teams have also collapsed over that period of time due to their high-octane financial budgets even though they’ve earned more prize money.

This isn’t to say the actual cash value paid out to F1 teams is more, because it isn’t. For instance, Chelsea received about $100 million this season. But the rate of increase definitely outweighs the world’s richest soccer league. Back in 2007 the total F1 prize money was $342, but by 2013 it had increased to a total of $797.5 million. That represents a jump of 133.2 per cent. It’s gone up again since then, but the last year the financial data is available for is currently 2013.

The biggest increases in F1 prize money came between 2007 and 2008 when it jumped from $342 million to $521 million and from 2009 to 2010 when it rose from $544 million to $659.1 million. Over in the Premier League, the prize money in 2007 was $1.6 billion. But by the time 2013 rolled around it had increased to $2.6 billion, which is just 60.3 per cent and less than half of the F1 increase of 133.2 per cent.

Ultimately, this means the Premier League is recording record profits, but the individual clubs are seeing less of them. Even though F1 is raking in less profits it’s sharing the money more evenly with its racing teams. The Premier League revenue was $1.9 billion in 2007 and it rose by 71.4 per cent to $3.2 billion in 2013. F1 profits were $1.2 billion in 2007 and jumped to $1.7 billion in 2013 for an increase of 46.4 per cent.

Even the struggling Premier League teams manage to survive though and the poor ones typically end up being relegated down to the Championship League. The F1 teams aren’t so lucky though. If they can’t afford to pay their bills they often go belly up.

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