All 10 Formula 1 teams have signed the organisation’s new Concorde Agreement, a commercial contract that outlines the terms for the manufacturers up until 2025.
The agreement, which was confirmed by F1 and the FIA, details that commercial revenues from the motor racing series will be divided up, such as media and sponsorship rights. As a result, all teams will received a fixed payment every year. Additionally, various payments will also be given based on the manufacturers performance in the constructors’ championship.
Ferrari CEO Louis Camilleri stated: “We are pleased to have signed up again to what is commonly known as the Concorde Agreement, which will regulate Formula One for the next five years.
“It is an important step to ensure the stability and growth of the sport. We are very confident that the collaboration with the FIA and Liberty Media can make Formula One even more attractive and spectacular, while preserving its status as the ultimate technological challenge.”
McLaren Racing CEO Zak Brown has praised the new agreement highlighting that the new contract will create a ‘sustainable, strong future’ for Formula 1 in the long-term. Moreover, Williams’ deputy team principal, Claire Williams added that the agreement ‘represents a major step forward’ in the commercialisation of the competition.
“Formula 1 has taken another important stride on the road to a sustainable, strong future with the new agreement,” commented 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.
“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.”
The Concorde Agreement, which also includes specifying technical regulations, was offered to the 10 teams yesterday with the deadline for signing being at the end of this month. F1 has outlined that the deal is set to create a more equitable share of revenue in the hope that the competition becomes more competitive and sustainable.
Claire Williams concluded: “The new Concorde Agreement represents a major step forward, for both Formula One and Williams.
“As one of the sport’s longest running teams, we are pleased to see the future direction of Formula One confirmed for the next era of racing. Our expectation, aligned with Liberty Media, is that this next era will be characterised by closer and more exciting racing as a result of the new platform of regulations, which include more equitable revenue distribution and a first ever cost cap for our sport.
“The Agreement is a major milestone in the development of Formula One, and also represents a significant opportunity for Williams to continue on our journey back towards the front of the grid.”