Ferrari warns F1: ‘We’re not learning from the past’
Formula 1 is gearing up for crucial negotiations surrounding its next Concorde Agreement, which will shape the future of the sport from 2026 onwards. Fred Vasseur, team boss of Ferrari, has called on F1 to pay attention to lessons from the past as these discussions unfold.
The Concorde Agreement, which governs the commercial relationship between F1, its teams, and the FIA, is entering its ninth iteration in over four decades. Its importance cannot be overstated, as it will not only determine the financial distribution among teams, but also the sport’s ability to thrive in expanding markets.
A well-structured Concorde Agreement is vital for attracting investors and potential new teams, enabling F1 to capitalize on its global growth aspirations.
However, the topic of new entrants and grid expansion has become a contentious issue. FIA president Mohammed Ben Sulayem has championed the idea of adding an 11th team to the field, with Andretti Cadillac already submitting a successful bid. Nonetheless, a majority of existing teams are opposed to this idea, fearing a reduction in their share of the prize money.
Andretti argues that their presence could actually boost the overall prize money pool, mitigating the financial impact on the existing teams.
To protect the interests of current teams, F1 has imposed an anti-dilution fee of $200 million for any new team joining the sport. However, there have been calls to increase this threshold to as much as $600 million.
Adding to the complexity is the implementation of a cost cap, aimed at achieving financial parity among teams. However, the cap has been adjusted to account for global inflation, causing concern among team principals like Vasseur. They worry that these constant adjustments undermine stability and predictability in long-term planning.
Vasseur stated, We are moving to increase costs at every single meeting. We put inflation [into the cost cap], we change the inflation index… and now we want to dilute the incomes. We are not learning from the past, and this is a big issue.
As F1 faces these critical Concorde Agreement negotiations, striking a delicate balance between the interests of existing teams, the potential for growth, and the constraints imposed by the cost cap will be key to ensuring the sport’s continued success.
James Vowles, team boss of Williams, shares concerns regarding grid expansion. He argues that prioritizing stability and long-term financial sustainability should be the focus. As F1 reaches a point of financial stability, then expansion can be considered.
Vowles emphasized, Let’s grow at a point where we can grow. I’m not sure that’s today.
As F1 powers forward with its negotiations, the sport must carefully navigate the path towards a Concorde Agreement that satisfies all parties involved. A well-balanced agreement will be crucial for sustaining the success of Formula 1 in the coming years.
