There was a good point raised a journalist on the Sky F1 programme. He said that in American Football (richest sport in the world) all of the teams get the same amount of money, something like £100 million and it is up to the teams to make money from sponsorship
Surely that would work for F1?
That's because its TV rights money, not prize money.
The Premier League is the same, sort of. Football clubs get an amount per televised match. It's why small clubs love being drawn against top teams as it guarantees prime time TV and so a payment.
American Football shows all matches equally on TV so all clubs get the same.
F1 does this too. About $450m is split between the teams evenly as TV rights revenue, because every race is televised. Another $450m is then distributed as prize money, and is there to offer incentives for teams to compete in the WCC.
Sure F1 could bundle it all into an even distribution, and everyone gets the same. But then why would anyone try? Just turn up, come last, never spend money on development, and at the end of the year earn the same money as the champions. No driver or team not realistically in the championship would even bother.
Imagine it was this season, pre Austin. 3 races to go, Mercedes are WCC and there's only 3 guys in with a chance of the WDC. And you can miss 3 races before you break any contract...
Why would anyone other than Mercedes and RBR (just with Ricciardo) turn up? Every teams going to get the same money, none of them other than Mercedes can win the WCC, and flying away for 3 races and competing in them costs loads. Better to just stay at home.
The ONLY reason any team that isn't champion competes for the whole year is because of the prize money for their position within the WCC. Removing that will kill F1.