Cadillac’s Costly F1 Leap $450M for 2026 Entry

GM’s $450M Entry to F1: Cadillac Set for 2026

26/11/2024

General Motors’ Cadillac F1 Team faces a $450M anti-dilution fee, marking a significant step toward its 2026 Formula 1 debut.

The exact amount remains officially unknown, as the teams, F1, and the FIA have yet to finalize the Concorde Agreements governing commercial rights for the 2026-2030 period.

However, an agreement on a figure was necessary, and according to multiple sources, the anti-dilution fund will rise from $200 million to $450 million for any new entrant during these five seasons.

This means GM will need to pay $450 million for its Cadillac F1 Team, with its engine and drivers for 2026 still undisclosed.

The amount will be split between GM and the American group TWG Global (which acquired Andretti Global), though the exact distribution remains unknown but is expected to be 50% each.

Notably, 63% of F1’s revenue is distributed to the teams, but with General Motors entering with Cadillac, this will be divided into 11 shares instead of 10. As a result, each team will receive 63% of the $450 million equally, amounting to $28.3 million per team.

“By then, the pie will likely have grown further, ensuring no team loses out, just as the FOM won’t. With GM’s arrival, there’s a guaranteed boost in the U.S., which is why teams quickly agreed to this strategic shift for the 11th entrant,” financial analysts specializing in FOM results explain.

Cadillac’s Costly F1 Leap: $450M for 2026 Entry
Cadillac’s Costly F1 Leap: $450M for 2026 Entry

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