Ferrari should keep its financial bonus under the Concorde Agreement

The teams are in discussion with the owners of Formula 1, Liberty Media, on the terms of the next Concorde Agreements, which are expected to come into effect from 2026.

This document defines how F1 is managed, with an agreement on the regulatory framework of the Grand Prix, and another one defining the commercial terms. A first version has recently been sent to the teams, before discussing, to reach an agreement satisfying all parties.

One of the points under discussion concerns the historic super bonus linked to Ferrari’s presence in the Formula 1 championship (it is the only manufacturer that has participated in all seasons of the championship since its creation). The Italian team is reportedly set to retain its bonus payment, but at a reduced level compared to today.

During the period 2021-2025, every team must share 50% of the profits of F1. However, this percentage seems to be limited to a certain amount. If Liberty Media manages to achieve more profits than an unknown threshold (around $3 billion according to estimates), the percentage to be shared would be reduced by 5% (45%).

Note that each team does not receive the same amount. With 10 teams, 50% of F1 profits are not distributed evenly at 10% each. The calculation is more complex and takes into account the position in the championship, the number of points scored, and other unknown criteria.

One of the most intriguing aspects of the Concorde Agreements was the payments related to historic teams. This was the case for Renault, Williams, and McLaren. In addition to this bonus, Ferrari receives a super bonus linked to being the only team that has participated in every season of the F1 championship.

Other criteria, such as the number of titles in recent seasons, are considered. However, Ferrari’s bonus is independent of its on-track performance. The Scuderia receives a payment representing at least 5% of the total amount to be shared among the teams. It receives this amount if the total prize money distributed to the teams does not exceed $1.1 billion.

Sources have revealed that the proposal in the upcoming Concorde Agreements will be to cap Ferrari’s bonus at 5%, regardless of the prize fund level. This means that Ferrari will still receive a significant share of F1 revenues, but in a more reasonable manner.

A bonus that sparks debate

Although some of Ferrari’s competitors believe that the need for it to be the only one to receive a special bonus is outdated, others accept that there are good reasons for it to receive special treatment.

Last year, the boss of the Williams team, James Vowles, explained: « I think Ferrari brings something special to the sport. We must be honest about it. If you ask an average person who they know in Formula 1, you will see that Ferrari is always a name that stands out. It’s the truth. They bring a certain level of heritage and recognition to the sport. So I think there is a reason for the existence of these things. ».

Interviewed about the situation of the Concorde Agreements project in Imola, the head of the Ferrari team, Fred Vasseur, said: “You know you can ask the question, but the question is for you, because you know perfectly well that I will never answer. Feel free to ask the question, but you know I will never answer!”

During a recent conference on the results, F1 CEO Stefano Domenicali stated that his priority was to offer Concord Agreements that are good for the long term and do not deviate much from the previous agreement.

« We are currently in discussions with the teams. The most important thing is to maintain the situation as stable as possible. These are the talking points. And as you can imagine, we cannot go into details, but as soon as we can, we will share what we can do. The situation is optimal for continuing discussions with the teams, with all parties involved, on the best way to finalize everything for a stronger long-term future.