All ten Formula 1 teams have signed up to the new Formula 1 Concorde Agreement, which will keep them racing in F1 through to 2025.
The new contract, which governs the series’ commercial rights, offers a more equal share of revenue between the teams and has been described as a “major step forward” by Williams. McLaren Racing’s CEO, Zak Brown, said that the undisclosed deal represents a “sustainable, strong future”, which will benefit teams and fans in the long term.
“All our fans want to see closer racing, wheel to wheel action and every team having a chance to get on the podium,” said F1 CEO Chase Carey. “The new Concorde Agreement, in conjunction with the regulations for 2022, will put in place the foundations to make this a reality and create an environment that is both financially fairer and closes the gaps between teams on the race track.”
Under the current arrangement, which ends at the end of this year, Ferrari receives the most generous settlement. All teams receive a set payment, with additional money depending on their success in the Constructors’ Championship. Ferrari, McLaren and Williams, Mercedes and Red Bull get a further bonus, reflecting their history in the series or recent success. There is another extra sum paid to Ferrari, as the only team to have competed since the first championship season.
The 2021 agreement is the first since Liberty Media took over Formula 1 from Bernie Ecclestone and CVC as commercial rights holders and the American ownership has pushed for a more even and financially viable future for all teams.
A cost cap has already been approved for 2021, with new regulations, designed to ensure closer racing, coming in the following year.
“Formula 1 has taken another important stride on the road to a sustainable, strong future with the new agreement,” said McLaren’s Zak Brown. “This is the right deal at the right time for the sport, its owners, its teams and, most of all, the fans.
“A more equitable sport is better for everyone: greater balance in the sharing of revenues among all the teams and clearer, simpler governance that cuts through vested interests and puts the sport first. This agreement will only make the F1 constructors collectively stronger in the long term.
“Everyone has had to give ground for the bigger outcome, which will be a more competitive, exciting and thriving Formula 1 for future generations.”
Yesterday was the early deadline for teams to sign up however, it looked as if the teams had reached an impasse earlier this month.
At Silverstone, Mercedes boss Toto Wolff told Sky F1 that rival teams were “up the arse” of Liberty Media on camera whereas many were still not happy with the deal behind closed doors.
Following further conversations with F1 CEO Chase Carey, Wolff said he was in a position to sign.
Ferrari CEO Louis Camilleri said the new agreement was an important step in ensuring the “stability and growth” of F1, and highlighted Ferrari’s role in the success of the championship throughout its history.
“We are pleased to have signed up again to what is commonly known as the Concorde Agreement, which will regulate Formula 1 for the next five years. It is an important step to ensure the stability and growth of the sport,” he said.
“We are very confident that the collaboration with the FIA and Liberty Media can make Formula 1 even more attractive and spectacular, while preserving its status as the ultimate technological challenge.