The answer is that several of the current F1 drivers have had their careers boosted by coming from rich families who could fund their early racing. However, there are also heartwarming success stories of drivers who came from modest backgrounds.
Lance Stroll – Billionaire Father Lawrence Stroll
One clear example of an F1 driver with a rich dad is Lance Stroll. His father is Canadian billionaire Lawrence Stroll, who made his money through investing in fashion brands like Tommy Hilfiger and Michael Kors.
Lawrence Stroll has an estimated net worth of $3.2 billion according to Forbes. He provided extensive financial backing to support Lance‘s junior career in karting and single-seater series.
In 2020, Lawrence Stroll took over as owner of the Racing Point F1 team, securing his son an F1 race seat. This demonstrates the power money can have in achieving a drive.
Other Young Drivers Backed by Wealth
Lance Stroll is not the only current driver who owes their F1 shot to family money:
- Nikita Mazepin – His billionaire father Dmitry funded his career and bought him the Haas seat for 2021.
- Nicholas Latifi – The Latifi family owns the Sofina Foods conglomerate and has backed his career to the tune of over $30 million.
Without the heavy financial support, it‘s questionable whether these young drivers would have made it to F1 on talent alone.
Max Verstappen – F1 Heritage From Father Jos
Red Bull‘s Max Verstappen is an interesting case. While his father Jos was an F1 driver, the Verstappen family was not exceptionally wealthy. However, Jos was able to steer Max into karting and then single-seaters at a very young age due to his connections in the sport.
Max therefore benefited in his development from the expertise of his father, rather than direct funding. Jos had not achieved great success in F1, but imprinted the technical skills and single-minded focus needed for F1 into Max from a young age.
Success Stories From Modest Backgrounds
However, it‘s important to note that a wealthy background is not the only route into F1. Some of the grid‘s top drivers came from working or middle-class families:
- Lewis Hamilton – Grew up on a council estate, with father Anthony holding down three jobs simultaneously to fund his karting.
- Daniel Ricciardo – His Italian family moved to Australia with limited finances when he was young.
- Fernando Alonso – His father José worked at an explosives factory in Oviedo, but bought second-hand kart parts for Fernando.
Their junior careers were by no means easy or lavishly funded. But their natural talent and dedication enabled them to rise to the top regardless.
The Vital Importance of Sponsorship
While the role of family funding varies, pretty much all future F1 stars are reliant on sponsorship at some stage to progress through the junior ranks:
- Charles Leclerc received vital backing from Nicolas Todt, son of ex-Ferrari boss Jean Todt.
- George Russell was supported by Mercedes from 2017 after impressing in junior categories.
- Lando Norris gained sponsorship from the Lotus F1 junior team early on.
The budget required for a full season of karting can be $100,000+. Without any assistance, few families can afford such costs. Sponsorship is therefore essential, whether it comes from family wealth or corporate backers.
Why Monaco is So Popular with F1 drivers
Almost all Formula One drivers take up residence in the tiny principality of Monaco, including those from modest backgrounds who have worked their way to the top. This is motivated primarily by the extremely favorable tax regime.
Monaco does not levy any personal income or capital gains taxes on its residents. For top F1 stars now earning $50 million+ a year, this tax haven provides immense savings compared to living in high-tax countries:
- Lewis Hamilton saves over $25 million per year in taxes alone by living in Monaco.
- Max Verstappen avoids paying roughly $15 million in Dutch income taxes.
Monaco also provides privacy, security, and convenience for the high-profile racing drivers. It allows them to preserve more of their wealth over the short F1 career span.
The Rising Salaries in F1
As F1‘s global popularity has grown enormously over the past decade, drivers‘ salaries have seen massive inflation:
| Driver | Estimated 2022 Salary |
|---|---|
| Max Verstappen | $60 million |
| Lewis Hamilton | $55 million |
| Fernando Alonso | $25 million |
This allows the top stars to enjoy all the trappings of success – private jets, luxury properties, flashy holidays, and expensive car collections. However, over two-thirds of F1 drivers still take home less than $5 million per year.
The Junior Formula Ladder
To make it to F1, drivers must first progress through the junior racing categories:
- Karting – entry point for aspiring racers, starting as young as age 5.
- Formula 4 – 15-16 years old, costs $200k+ per season.
- Formula 3 – 16-18 years old, costs up to $500k per season.
- Formula 2 – final stage before F1, budget over $1 million needed.
Total costs from karting to F1 can easily exceed $10 million. For families of average means, this prohibits talented young racers from progressing up the ladder. The pressures of finding sponsorship funding are also immense.
Efforts to Improve Accessibility
In recent years, there are concerted efforts to make F1 more representative of wider society:
- Championships like W Series supporting women into feeder series.
- Scholarships for young racers from underprivileged backgrounds.
- Rules limiting junior testing to reduce costs.
- SIM racing competition winners awarded F1 test drives.
With progress still slow, continued focus is required to open up F1 to talent from all walks of life, regardless of financial situation.
