FIA awaits signature of Concorde Agreement
Although the season kicked off last week in pouring rain, the FIA has been slow to sign the Concorde Agreement, which it would like to see reworded on several points, giving rise to lively tensions between the parties to the agreement.
The future of Formula 1 stalled by a signature: that of the Concorde Agreement 2026. While F1 initially announced a joint commitment among the teams, the reality turns out to be more nuanced, with tensions threatening the finalization of this vital agreement for the economic stability and governance of the sport.
The announcement, a few days ago, of a Concorde 2026 agreement signed by all the teams had sparked hope for some stability and prosperity for Formula 1. This agreement, which defines governance rules, revenue distribution, and commitments from each party for the next five years, is seen as the very foundation of the discipline’s future, much like a constitution for a country. However, the initial optimism quickly dissipated, giving way to uncertainty. Two notable absences cast doubt on the solidity of this agreement: that of Cadillac, whose arrival in 2026 is eagerly anticipated, and especially that of the FIA, the regulating body of the discipline.
The absence of the FIA is particularly concerning. As the third essential partner of the Concorde Agreement, alongside Liberty Media (the holder of the commercial rights to F1) and the teams, it plays a crucial role in the sustainability of the sport. Its absence from the signing highlights ongoing disagreements among the stakeholders. These tensions, which have existed for months, are compromising the finalization of the agreement.
One of the major points of contention concerns Cadillac’s arrival in 2026 and the financial conditions of its entry. The anti-dilution fee, amounting to $450 million that Cadillac would have to pay to offset the potential impact of its presence on the current teams’ revenue shares, is at the heart of the discussions. Although this amount is intended to be distributed equally among the ten current teams, it has raised questions about its perceived exorbitant level.
The FIA would like the Concorde Agreement to include clearer provisions regarding the potential arrival of a twelfth team in the future. The goal is to avoid reliving the complications and controversies surrounding Andretti’s application, thus ensuring a more transparent and fair process for future entrants.
Beyond financial issues and the management of new teams, disagreements continue to grow regarding the development of technical and sporting regulations in F1. The FIA, as the regulatory manager, wants to establish a greater share of authority over these decisions to ensure equality, safety, and continuity in the premier discipline. Furthermore, Mohammed Ben Sulayem is reportedly advocating for increased funding for the FIA, arguing that the increased workload and responsibilities of the organization require additional financial resources.
With the almost imminent expiration of the current Concorde Agreement, a swift signature is imperative. The absence of an agreement could plunge F1 into a period of legal and economic uncertainty, which could compromise its stability and attractiveness to investors and sponsors. The draft agreement is currently in the hands of the FIA’s legal experts, and a signature could occur soon. The stakes are high, as the future of Formula 1 depends on it.
