F1 2025 prize money revealed as Red Bull extends Oracle deal
F1 teams will benefit from a record $3.87bn revenue-driven prize fund in 2025, with Ferrari topping the payout list. Red Bull extends its major title sponsorship with Oracle, and the 2026 technical rules are finalized, replacing DRS with 'Straight Mode' zones for the upcoming season opener in Melbourne.
Formula 1 teams will share a record prize fund in 2025 following Liberty Media's $3.87 billion revenue year, with Ferrari earning the largest share despite McLaren's championship win. In other major off-track news, Red Bull has secured a multi-year extension of its lucrative title sponsorship with Oracle, solidifying one of the sport's most valuable partnerships as the grid prepares for the new 2026 technical era, marked by the introduction of 'Straight Mode' zones replacing DRS.
Why it matters:
The financial health of Formula 1 directly impacts team competitiveness and stability. A record-breaking prize fund rewards performance and fuels development wars, while Red Bull's extended partnership with Oracle demonstrates continued high-value commercial confidence in the sport. Simultaneously, the confirmed shift from DRS to 'Straight Mode' zones for 2026 underscores the ongoing and significant technical evolution that will define the next generation of cars and racing.
The details:
- Record Prize Fund: Liberty Media announced F1 revenue hit $3.87bn for 2025, leading to a historic total prize fund for the ten teams. Ferrari received the largest payout after accounting for historical bonuses and constructor standings, followed by Red Bull and Mercedes, with 2024 champions McLaren finishing fourth in the monetary distribution.
- Sponsorship Security: Red Bull and Oracle have agreed to a multi-year extension of their title partnership, a deal already considered among the most valuable in F1. Team principal Laurent Mekies highlighted the success of the collaboration, which will now continue into F1's new regulatory era in 2026.
- 2026 Tech Becomes Reality: The official track map for the season-opening Australian Grand Prix confirms the new aerodynamic rules, replacing four DRS zones with five 'Straight Mode' zones at Albert Park. Drivers will also have access to a separate 'Overtake Mode' when within one second of a car ahead, with the activation point between Turns 13 and 14.
- Driver Feedback & FIA Response: Reigning champion Max Verstappen has been critical of the 2026 car dynamics, comparing the driving experience to "Formula E on steroids." In response, FIA Single-Seater Director Nikolas Tombazis stated the governing body is open to minor tweaks, particularly around energy deployment, based on ongoing feedback from drivers and teams.
What's next:
The financial and commercial announcements set the stage for the competitive battle on track, which begins in earnest at the Australian Grand Prix. All eyes will be on how the new 'Straight Mode' and 'Overtake Mode' systems perform in their first race weekend, potentially reshaping overtaking strategies. Furthermore, the FIA's openness to tweaking the 2026 car specifications suggests the driver feedback loop will be active throughout the season, as the sport continues to refine its future direction.