NFL Salaries: How much do cheerleaders make? Edited by Sankalp Srivastava 6. Sort by: Most popular Recent Most upvotes. Login to post your comment. Show More Comments. No thanks Delete. These contingency payouts are money put in by sponsors, but the only way a driver can win it is if the team uses the sponsor's product and displays the sponsor's decal on the car. Sponsors also offer a variety of other bonuses throughout the racing season. Just as one example, Gatorade offers the Gatorade Front Runner Award to the driver who leads the most laps during the race.
There are also a number of cash awards given by sponsors for things like the best strategic call during the race or the fastest lap time. Now that you know where the money is coming from, keep reading to find how it's paid out. The system may surprise you. So what's the incentive to win?
Well, in racing, the largest share still goes to the winner. To date, there's never been a case where the winner of a NASCAR race gets a smaller share than any of the other finishers. But this is where it gets tricky -- beyond first place, the prize money can get a little confusing. Shares of the race purse are handed out not only based on where a driver finishes, but also on the specific products the team uses -- as in the case of the contingency money we talked about earlier in this article -- how well the team is doing this season, how well the team did last season, and what type of prize money "plan" the team participates in.
A prize money plan? Doesn't every team have the same plan -- to win as much prize money as possible? Well, of course they do. Teams who are in the Winner's Circle plan are the previous season's top 10 teams, plus two "wild card" positions. Basically, we can tell you that they're all based on the number of points a team has, how long they've been in the sport and how well they've done. Drivers are treated more like independent contractors than the union employees found in team sports, and so much of the salary information remains private.
Drivers keep anywhere from 40 to 45 percent of the prize money that they win for their team throughout the year. This money is typically considered to be part of the driver's overall salary and can greatly increase annual earnings. Because of various award programs available to veteran drivers with good records, a higher finish does not necessarily indicate that a driver will earn more money. At least, that is how it would appear to be in the simplest case.
There are what are known as prize plans , and each team will be on a different one depending on a variety of factors. The money for the prize pools of each race comes from a variety of sources. The biggest chunk of it comes from the TV companies. The broadcasters that show the races need to pay to do so, and they pay the venue and organizers a fee in order to show it to their viewers.
The rest of the money comes from the race sponsors , of which there are plenty. These specific sponsors want to see a return on their investment , as do the broadcasters of course. This means they will want to gain as much exposure as they can during the race, and from the right people. Different teams have different sponsors , and the sponsors of each race will hope that they are endorsing those that do well, as this will look best for the brand.
This means they will pay an extra fee each race to the teams that are running cars with their brand on them, as an extra incentive to try and do well not that the teams need one, as everyone wants to win. These types of winnings are called contingency money.
In other words, in order for the teams to get this money, they need to meet the requirements of the sponsors. But this does mean that some teams can earn more money than those that finish ahead of them, simply due to the fact that they earn bonus sponsor money.
0コメント