All Formula One Teams Sign New Concorde Agreement
ll ten Formula One teams have agreed to sign the new Concorde Agreement governing the global series from 2021 to 2025.
The purpose of the agreement is to level the playing field across the series, providing more equitable splits in prize money, with the teams receiving a financial bonus for committing to the new agreement at the end of the early signing period, August 18.
Ferrari, Williams, and McLaren announced they had signed up on Tuesday afternoon, with Formula One confirming the remaining teams had also agreed by Wednesday morning.
International Automobile Federation (FIA) president, Jean Todt, said the agreement marks “an exciting new chapter” for Formula One.
“The conclusion of the new Concorde Agreement between the FIA, Formula One and all ten of the current teams assures a stable future for the FIA Formula One World Championship,” Todt said.
“Over its 70-year history, Formula One 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 One’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,” he said.
Formula One chairman and CEO, Chase Carey, said the agreement was reached after a revision following calls from Mercedes to make the payment division aspect reflect more favourably on the reigning champions.
“This year has been unprecedented for the world and we are proud that Formula One has come together in recent months to return to racing in a safe way,” Carey said.
“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 to achieve agreement from all ten 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,” he said.
The agreement primarily acts as a commercial document defining how Formula One’s television revenues and prize money will be distributed, with the new agreement introducing a new budget cap, with new technical regulations and new sporting rules from 2022.