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High Speeds, Higher Stakes: The Luxe Economy Behind Formula 1 Salaries

Formula 1 is more than just a racing series—it’s a global empire fueled by innovation, fierce rivalries, and extraordinary amounts of money.

Por: Rubén Carrillo April 19, 2025

Max Verstappen and Lewis Hamilton are the highest paid, and the rising star Lando Norris / Photo F1

For decades, Formula 1 has attracted the biggest names in motorsports, with top-tier drivers commanding salaries that reflect their prestige and performance under pressure.

Still, thanks to sponsorship deals, bonuses, and leaks from insiders, it’s possible to paint a fairly accurate picture of what the sport’s elite are earning.

And it’s not just base salaries we’re talking about—performance incentives, personal endorsements, and team equity play significant roles in a driver’s income.

So, let’s break down what the top drivers earn and what those numbers reveal about the modern face of Formula 1.

Max Verstappen: The Highest Paid in the Paddock

Reigning world champion Max Verstappen is currently leading not only on the track but also on the financial scoreboard.

With an estimated base salary of around $70 million per year, Verstappen’s contract with Red Bull Racing reflects his dominance in recent seasons.

However, this figure doesn’t even account for his bonuses—rumored to be several million more if he hits championship milestones or contributes to team wins.

As the face of Red Bull’s racing dominance, Verstappen’s income is also amplified by long-term branding deals and endorsements.

His consistency and youth have made him an attractive asset to sponsors, making him a poster child for the lucrative potential of modern Formula 1 careers.

Lewis Hamilton: Ferrari’s Bold Investment

When Lewis Hamilton announced his switch to Ferrari for the 2025 season, it was more than just a career move.

Though reports suggest he accepted a slightly reduced salary of around $55 million annually (with his first year at Ferrari netting approximately $53.9 million), the bigger picture reveals an even more impressive impact.

Ferrari’s stock reportedly jumped by 6% following the announcement, generating a market value increase of $6.12 billion.

Hamilton, already one of the sport’s most successful and recognizable figures, brings unmatched global appeal to Ferrari.

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Rising Stars and Rookie Salaries

While Verstappen and Hamilton headline the financial charts, the lower end of the F1 salary spectrum is populated by talented rookies and second drivers earning between $1 million and $3 million.

Drivers like Oscar Piastri, Logan Sargeant, and Zhou Guanyu are part of a new generation eager to prove themselves on the grid.

Their contracts may seem modest compared to the sport’s titans, but the potential for growth is enormous.

As performance improves and marketability increases, so too do endorsements, appearance fees, and contract renegotiations.

F1’s Richest Ever: The Schumacher Legacy

No discussion of Formula 1 wealth would be complete without mentioning Michael Schumacher, widely considered the highest-paid F1 driver of all time.

With a career total estimated at $1 billion, Schumacher ranks among the highest-earning athletes in history.

His dominance in the early 2000s, including five consecutive championships with Ferrari, cemented his place in F1 lore.

Forbes listed Schumacher as the fifth highest-paid athlete of all time in 2017—making him the top non-American on that list.

Questions & Answers

1. How much is Max Verstappen currently earning in Formula 1? He earns an estimated $70 million per year, excluding bonuses and endorsements.
2. Why is Lewis Hamilton’s move to Ferrari significant? Besides the career shift, it triggered a 6% surge in Ferrari’s stock price, worth about $6.12 billion.
3. Who is the richest Formula 1 driver in history? Michael Schumacher, with career earnings estimated at $1 billion.
4. Do rookie F1 drivers earn as much as veterans? No, most rookies earn between $1–3 million, significantly less than top drivers like Verstappen or Hamilton.