P1racenews AI automatic summary:
Explained: Andretti’s $600m issue to join F1 – and how to solve it
The FIA has accepted Andretti’s bid to enter Formula 1, a significant step towards them becoming the 11th team on the grid. Andretti has submitted a 500-page document to the FIA, showcasing their sustainability, sporting, and diversity credentials, in order to secure their place on the grid for 2025 or 2026. Their entry bid proves to the governing body that they have the resources and capability to compete. However, they now need to convince the commercial rights holder and the existing 10 teams that their arrival won’t disadvantage the current teams who receive prize money payouts based on their performance. The negotiation revolves around how the dilution of prize money would impact both the commercial rights holder and the existing teams. The current Concorde agreement, which controls the financial side of F1, expires in 2025, and the $200 million figure for dilution could be revised upwards if Andretti fails to secure their entry before then.
Source: Crash
