# Formula 1 Explained: How F1 Works, Why It's So Expensive, and Who Wins

> F1 teams spend £300 million per year building the fastest cars in the world — here's how the sport works, why Red Bull dominate, and what makes it so exciting.

*Section: Sports — By Tom Bennett (Sports Writer) — Published July 8, 2026 — 8 min read*

Canonical URL: https://dailyjunction.org/sports/formula-1-explained-how-f1-works
Tags: Formula 1, F1, motorsport, Red Bull, Max Verstappen, racing, constructors championship, drivers championship

## Key takeaways

- F1 has 10 teams with 2 drivers each competing in 24 races per year for the drivers championship (individual) and constructors championship (team)
- Teams spend up to £300 million per year (budget cap £135 million plus exemptions) developing cars that reach 230mph and generate 5G cornering forces
- Points are awarded to the top 10 finishers (25 for 1st, 18 for 2nd, down to 1 for 10th) plus 1 point for fastest lap if you finish in the top 10
- Red Bull have dominated 2022-2024 with Max Verstappen winning 3 consecutive drivers championships, but Mercedes dominated 2014-2021 with Lewis Hamilton winning 6 titles
- F1 generates £2.5 billion revenue per year from TV rights (£1.2bn), race hosting fees (£800m), and sponsorship (£500m), with teams receiving 63% of revenue

**Formula 1** is the pinnacle of motorsport, where **10 teams** with **2 drivers each** compete in **24 races per year** to build the fastest cars and win the **drivers championship** (individual) and **constructors championship** (team). F1 cars are the most advanced racing machines in the world, reaching **230mph** and generating **5G cornering forces**, and teams spend up to **£300 million per year** developing them. But F1 is also a sport of dominance — the same team often wins for years (Red Bull 2022–2024, Mercedes 2014–2021) because the car matters more than the driver. Here is everything you need to know about Formula 1 — how it works, why it is so expensive, and what makes it so exciting.

## What Is Formula 1?

**Formula 1** (F1) is the highest class of international racing, governed by the **FIA** (Fédération Internationale de l'Automobile). It is called "Formula" because teams must build cars to a strict set of rules (the "formula").

### The basics

- **10 teams** (also called constructors)
- **20 drivers** (2 per team)
- **24 races per year** (called Grands Prix) across 5 continents
- **Two championships**: Drivers (individual) and Constructors (team)

### The 10 teams (2024)

1. **Red Bull Racing** (Austria) — Max Verstappen, Sergio Pérez
2. **Mercedes** (Germany) — Lewis Hamilton, George Russell
3. **Ferrari** (Italy) — Charles Leclerc, Carlos Sainz
4. **McLaren** (UK) — Lando Norris, Oscar Piastri
5. **Aston Martin** (UK) — Fernando Alonso, Lance Stroll
6. **Alpine** (France) — Pierre Gasly, Esteban Ocon
7. **Williams** (UK) — Alex Albon, Logan Sargeant
8. **Alfa Romeo/Sauber** (Switzerland) — Valtteri Bottas, Zhou Guanyu
9. **Haas** (USA) — Kevin Magnussen, Nico Hülkenberg
10. **AlphaTauri/RB** (Italy, Red Bull's junior team) — Yuki Tsunoda, Daniel Ricciardo

## How F1 Works

### The race weekend

Each race weekend has three days:

**Friday**: Two practice sessions (FP1, FP2) — teams test setups and gather data

**Saturday**: One practice session (FP3) + **Qualifying** — drivers compete for grid positions (fastest lap wins pole position)

**Sunday**: **The race** — 50–70 laps (305km total distance, except Monaco which is 260km)

### Qualifying

Qualifying has three rounds:

- **Q1** (18 minutes) — All 20 drivers compete, slowest 5 are eliminated
- **Q2** (15 minutes) — Remaining 15 drivers compete, slowest 5 are eliminated
- **Q3** (12 minutes) — Remaining 10 drivers compete for pole position (1st on the grid)

Grid position matters hugely — starting 1st gives a massive advantage (easier to control the race, less traffic, less risk of crashes).

### The race

Races are **50–70 laps** (305km total, except Monaco). Drivers must:

- **Use at least 2 different tyre compounds** (soft, medium, hard) — this forces pit stops
- **Manage tyres and fuel** — pushing too hard wears tyres and wastes fuel
- **Overtake rivals** — difficult because F1 cars generate downforce (air pressure pushing them down), and following another car disrupts this (called "dirty air")

Races last **1.5–2 hours**, and the winner is the first to cross the finish line after completing all laps.

### Pit stops

Teams change tyres during **pit stops** (2–3 seconds). Strategy matters:

- **One-stop**: Change tyres once (faster but tyres wear out)
- **Two-stop**: Change tyres twice (slower but fresher tyres at the end)

Teams use strategy to gain positions — for example, staying out longer on old tyres to gain track position, then defending on fresher tyres later.

### Points

Points are awarded to the **top 10 finishers**:

| Position | Points |
| --- | --- |
| 1st | 25 |
| 2nd | 18 |
| 3rd | 15 |
| 4th | 12 |
| 5th | 10 |
| 6th | 8 |
| 7th | 6 |
| 8th | 4 |
| 9th | 2 |
| 10th | 1 |

**Fastest lap**: +1 point (if you finish in the top 10)

**Sprint races** (6 per year): Shorter races on Saturday, awarding 8-7-6-5-4-3-2-1 points to the top 8.

### The championships

**Drivers Championship**: The driver with the most points at the end of the season wins. **Max Verstappen** (Red Bull) has won the last 3 titles (2021, 2022, 2023).

**Constructors Championship**: The team with the most points (sum of both drivers) wins. **Red Bull** has won the last 2 titles (2022, 2023).

The constructors championship matters more financially (prize money is based on constructors standings), but the drivers championship gets more attention.

## The Cars

F1 cars are the most advanced racing machines in the world:

### Performance

- **Top speed**: 230mph (370km/h)
- **0-60mph**: 2.6 seconds
- **0-120mph**: 5 seconds
- **Cornering forces**: 5G (5 times the force of gravity)
- **Braking forces**: 6G (drivers experience 6 times their body weight under braking)

### Technology

- **Engine**: 1.6-litre V6 hybrid (1,000+ horsepower)
- **Weight**: 798kg (including driver)
- **Downforce**: Cars generate 3–5 times their weight in downforce at high speed, allowing them to corner at 5G
- **Materials**: Carbon fibre (lightweight and strong)
- **Cost**: £10–15 million per car (teams build 3–4 cars per season)

### The budget cap

F1 introduced a **budget cap** in 2021 to reduce costs and level the playing field:

- **Cap**: £135 million per year (2024)
- **Exemptions**: Driver salaries, marketing, top-3 staff salaries, heritage activities

Top teams (Red Bull, Mercedes, Ferrari) used to spend **£300–400 million per year**. The cap has reduced this, but teams still spend **£200–300 million** (including exemptions).

## Why the Same Team Wins Every Year

F1 is a **constructor's sport** — the car matters more than the driver. If one team builds a faster car, they dominate until other teams catch up (which can take years).

### Recent dominance

- **Red Bull (2022–2024)**: Max Verstappen won 3 consecutive titles, Red Bull won 2 constructors titles
- **Mercedes (2014–2021)**: Lewis Hamilton won 6 titles (2014–2015, 2017–2020), Mercedes won 8 consecutive constructors titles
- **Red Bull (2010–2013)**: Sebastian Vettel won 4 consecutive titles
- **Ferrari (2000–2004)**: Michael Schumacher won 5 consecutive titles

### Why does one team dominate?

1. **Technical advantage**: One team finds a design innovation (e.g., Mercedes' hybrid engine 2014, Red Bull's aerodynamics 2022) that gives them 0.5–1 second per lap advantage
2. **Resources**: Top teams have more money, better engineers, better facilities (wind tunnels, simulators)
3. **Momentum**: Success attracts the best engineers and sponsors, creating a virtuous cycle

The budget cap and technical regulations aim to level the field, but the best teams still find advantages.

## The Drivers

### The best drivers (2024)

**Max Verstappen** (Red Bull) — The best driver in the world, 3-time world champion (2021, 2022, 2023), 54 wins

**Lewis Hamilton** (Mercedes) — 7-time world champion (2008, 2014–2020), 103 wins (record), moving to Ferrari in 2025

**Fernando Alonso** (Aston Martin) — 2-time world champion (2005, 2006), 32 wins, still competitive at age 42

**Charles Leclerc** (Ferrari) — Fast but inconsistent, 5 wins

**Lando Norris** (McLaren) — Rising star, 1 win

### Driver salaries

Top drivers earn **£30–50 million per year**:

- **Max Verstappen**: £50 million
- **Lewis Hamilton**: £45 million
- **Fernando Alonso**: £30 million

Rookie drivers earn **£500,000–£1 million**.

## The Money

F1 generates **£2.5 billion revenue per year** (2023) from:

- **TV rights**: £1.2 billion (50%)
- **Race hosting fees**: £800 million (32%) — countries pay £20–50 million to host a Grand Prix
- **Sponsorship**: £500 million (18%)

### Prize money

Teams receive **63% of F1 revenue** (£1.6 billion), distributed based on:

- **Constructors championship position** (50%)
- **Historical bonus** (teams that have been in F1 for 10+ years get more)
- **Equal share** (all teams get a base payment)

**Top teams** (Red Bull, Mercedes, Ferrari) receive **£150–200 million per year**. **Bottom teams** (Williams, Haas, Alfa Romeo) receive **£50–80 million**.

### Team budgets

Top teams spend **£200–300 million per year** (including budget cap exemptions):

- **Budget cap**: £135 million
- **Driver salaries**: £50–80 million (exempt)
- **Marketing**: £20–30 million (exempt)
- **Top-3 staff salaries**: £10–20 million (exempt)

## Why F1 Is Exciting

### 1. Speed and danger

F1 cars are the fastest racing cars in the world, and crashes can be spectacular (though modern safety has made F1 much safer — no driver has died since 1994).

### 2. Strategy

Races are won and lost on strategy — when to pit, which tyres to use, how to manage fuel and tyres. Teams have 100+ engineers analysing data in real-time.

### 3. Overtaking

Overtaking is difficult (dirty air makes it hard to follow another car), so when it happens, it is exciting. **DRS** (Drag Reduction System) helps — a flap on the rear wing opens on certain straights, reducing drag and allowing cars to overtake.

### 4. Personalities

F1 drivers are global celebrities (Hamilton, Verstappen, Alonso), and rivalries are intense (Verstappen vs Hamilton 2021 was one of the most dramatic seasons in F1 history).

### 5. Global spectacle

F1 races in 24 countries (Monaco, Singapore, Abu Dhabi, Las Vegas), and the races are glamorous events attended by celebrities, royalty, and billionaires.

## The Controversies

### 1. Dominance is boring

When one team dominates (Red Bull 2022–2024, Mercedes 2014–2021), races become predictable and boring. Fans want close competition, not one team winning every race.

### 2. The budget cap is not working

The budget cap (£135 million) has reduced costs, but top teams still spend £200–300 million (including exemptions). Smaller teams cannot compete.

### 3. Too many races

F1 has expanded from 16 races per year (2000) to 24 races (2024), and drivers and teams are exhausted. The calendar is too long, and races are losing their specialness.

### 4. F1 is too expensive for fans

Tickets cost £200–£500 for a weekend, and TV subscriptions (Sky Sports F1) cost £46 per month. F1 is pricing out working-class fans.

### 5. F1 is not environmentally friendly

F1 cars burn fossil fuels, and the sport flies around the world 24 times per year. F1 has pledged to be **carbon neutral by 2030** (hybrid engines, sustainable fuels, carbon offsets), but critics say this is greenwashing.

## The Bottom Line

F1 has 10 teams with 2 drivers each competing in 24 races per year for the drivers championship (individual) and constructors championship (team). Teams spend up to £300 million per year (budget cap £135 million plus exemptions) developing cars that reach 230mph and generate 5G cornering forces. Points are awarded to the top 10 finishers (25 for 1st, 18 for 2nd, down to 1 for 10th) plus 1 point for fastest lap if you finish in the top 10. Red Bull have dominated 2022-2024 with Max Verstappen winning 3 consecutive drivers championships, but Mercedes dominated 2014-2021 with Lewis Hamilton winning 6 titles. F1 generates £2.5 billion revenue per year from TV rights (£1.2bn), race hosting fees (£800m), and sponsorship (£500m), with teams receiving 63% of revenue. F1 is the pinnacle of motorsport, but it is also a sport of dominance, expense, and controversy. The same team often wins for years, tickets and TV are expensive, and the calendar is too long. But when F1 is good — close racing, dramatic strategy, intense rivalries — it is the most exciting sport in the world.

## Frequently asked questions

### Why is F1 so expensive?

Because teams are constantly developing new technology to gain tiny advantages (0.1 seconds per lap can be the difference between winning and losing). Teams employ 1,000+ engineers, use wind tunnels, simulators, and carbon fibre materials, and build new parts every week. The budget cap (£135 million) has reduced costs, but top teams still spend £300 million per year (cap excludes driver salaries, marketing, and top-3 staff salaries).

### Why does the same team win every year?

Because F1 is a constructor's sport — the car matters more than the driver. If one team builds a faster car, they dominate until other teams catch up (which can take years). Red Bull dominated 2022-2024, Mercedes dominated 2014-2021, Red Bull dominated 2010-2013. The budget cap and technical regulations aim to level the field, but the best teams still find advantages.

### Can any driver win in any car?

No. The car is 80-90% of performance, the driver is 10-20%. A great driver in a slow car will lose to an average driver in a fast car. Max Verstappen (Red Bull) is the best driver, but he would not win in a Williams or Haas. Lewis Hamilton (Mercedes) won 7 titles in the fastest car (2014-2020) but has not won since Mercedes lost performance in 2021.

## Sources

- [Formula 1 official website](https://www.formula1.com/)
- [FIA — F1 regulations](https://www.fia.com/)
- [BBC Sport — F1 coverage](https://www.bbc.co.uk/sport/formula1)
- [The Guardian — F1 news](https://www.theguardian.com/sport/formulaone)

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