All 10 Formula 1 teams have signed up to the new Concorde Agreement that will cover 2021-2025.
The Concorde Agreement binds the teams, commercial rights holder Liberty Media and the FIA together and formalises the governance of Formula 1, also effectively committing the teams to continuing in the world championship for the next five years.
The new deal is designed to make Formula 1 more equitable by redressing some of the imbalances in the financial structure that have contributed to the gaps between the big teams and the rest in recent years. Combined with the new technical, sporting and financial regulations that are being adopted, it is hoped this will both improve the show and ensure F1 is on a more stable financial footing.
“This year has been unprecedented for the world and we are proud that Formula 1 has come together in recent months to return to racing in a safe way,” said F1 chairman Chase Carey.
“We said earlier in the year that due to the fluid nature of the pandemic, the Concorde Agreement would take additional time to agree and we are pleased that by August we have been able achieve agreement from all 10 teams on the plans for the long term future of our sport.
“All our fans want to see closer racing, wheel to wheel action and every team having a chance to get on the podium.
“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.”
FIA president Jean Todt believes the deal achieved the stability F1 needs and paid tribute to the way those involved have collaborated on the Concorde Agreement.
“The conclusion of the new Concorde Agreement between the FIA, Formula 1 and all ten of the current teams assures a stable future for the FIA Formula One World Championship,” said Todt.
“Over its 70-year history, Formula 1 has developed at a remarkable rate, pushing the boundaries of safety, technology and competition to the absolute limits, and today confirms that an exciting new chapter in that history is about to begin.
“During the unprecedented global challenges currently facing everyone around the world, I am proud of the way that all of Formula 1’s stakeholders have worked together over the past months for the best interests of the sport and the fans to agree the pathway for more sustainable, fair and exciting competition at the pinnacle of motor sport.”
The Race understands that, as part of the agreement, Ferrari retains its right of veto on F1 regulations as well as a bonus payment to reflect its long history in the world championship that dates back to the second race staged at Monaco in 1950.
The four engine manufacturers are understood to receive a small payment as part of the deal in recognition of the role they play in F1.
“It is an important step to ensure the stability and growth of the sport,” said Ferrari CEO Ferrari CEO Louis Camilleri.
“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.
“Racing is in Ferrari’s DNA and it is no coincidence that the Scuderia is the only team that has participated in every edition of the world championship, becoming an integral and essential part of its success, today as in the past and, above all, in the future.”
McLaren F1 CEO Zak Brown also welcomed the new Concorde Agreement, which he believes will achieve its objective of making F1 a more level playing field.
“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,” said Brown.
“This agreement will only make the F1 constructors collectively stronger in the long term.
“The new agreement complements and builds on the great work of F1, the FIA and all the teams during the past few months on the future financial, technical and sporting regulations.
“Everyone has had to give ground for the bigger outcome, which will be a more competitive, exciting and thriving Formula 1 for future generations, which in turn secures a healthy sport for both participants and fans alike.”