F1’s New Deal: Cash Flows, Power Struggles Remain

No Big Shakeup in New Concorde Agreement

30/03/2025

Teams and FOM agree on money, but governance issues still stall FIA’s approval of the 2026 Concorde Agreement framework.

Formula 1’s future just became a bit clearer, at least financially. While a major step forward has been taken between Formula One Management (FOM) and the teams regarding the next Concorde Agreement, the FIA has yet to sign on, holding firm on key governance issues.

The new agreement, set to come into effect next year, outlines how revenues will be shared between FOM and the teams. It also includes a major update: the anti-dilution fee for new entrants, like Cadillac, is set to double to over $400 million. This fee is designed to compensate existing teams and preserve the value of current F1 entries.

Another notable carryover from the previous Concorde Agreement is the flexible revenue-sharing model. In short, teams earn more when the sport earns more, a business-savvy incentive that aligns everyone’s interests.

But the Concorde Agreement isn’t just about money. It also defines how the sport is governed, from voting rights to the distribution of power between the FIA, FOM, and the teams. And it’s precisely on this point that progress has stalled. The FIA appears uneasy with the current structure, possibly due to a perceived imbalance in its ability to influence decisions.

Teams on Board, and Generally Pleased

Despite the governance gridlock, team bosses are sounding optimistic. For many, this round of negotiations has been smoother than expected.

“This is my first Concorde Agreement, I’m the new guy,” said Oliver Oakes, Team Principal at Alpine F1. “From my side, it felt straightforward. What impressed me most was how united the teams were in supporting Liberty and everything they’re doing.”

Oakes remains confident the governance aspect will fall into place soon: “Compared to what I’ve heard about the past, this was probably a walk in the park.”

McLaren Racing CEO Zak Brown echoed that sentiment: “The commercial side of the agreement came together pretty quietly, which is refreshing. Historically, these talks have been far more dramatic.”

He expects the same outcome on the governance front: “Just like the financial side, it’ll likely be a refreshed version of what we had, updated, but nothing radical.”

Red Bull’s Christian Horner, often on the other side of any debate with McLaren, found rare agreement with Brown.

“Honestly, it was all pretty uneventful compared to previous years,” Horner noted. “What’s unusual is that this tripartite agreement currently only has two signatures.”

Indeed, the FIA has yet to sign the deal.

“But from a team’s point of view, what matters most is knowing what we’ll get paid,” Horner added. “That’s the core of this agreement, how the money is divided. Governance is important too, but that’s really a matter between the FIA and the commercial rights holder. They’ll figure it out.”

F1’s New Deal: Cash Flows, Power Struggles Remain
F1’s New Deal: Cash Flows, Power Struggles Remain

Next Grand Prix

Race Center
Japanese Flag
Japanese GP
4 Apr 2025 - 6 Apr 2025
FP 1
4 Apr 2025 02:30 - 03:30
FP 2
4 Apr 2025 06:00 - 07:00
FP 3
5 Apr 2025 02:30 - 03:30
Qual
5 Apr 2025 06:00 - 07:00
Race
6 Apr 2025 06:00 - 08:00
Go toTop

Don't Miss