P1racenews AI automatic summary:
The 10 existing Formula 1 teams are seeking the limit of outfits allowed onto the grid to be reduced from
The current terms for Formula 1 allow 12 teams to participate, but new entries must pay a $200 million anti-dilution fee if prize funds are spread beyond 10 outfits. Following this, the FIA initiated a tender process to attract new entries, with Andretti being the sole prospective entry approved by the FIA, but not by Formula One Management for 2025. There is a growing consensus among F1 stakeholders to limit the number of competitors to 10 in the upcoming Concorde Agreement from 2026 to 2030, to maintain the rising value of the sport and its teams. The F1 ecosystem is moving towards a US-inspired franchise model under Liberty Media’s ownership, causing concern among current teams about revenue sharing with new entries. Financially, existing F1 teams have seen their valuations near £1 billion post the hardship of the Covid pandemic in 2020, as articulated by McLaren CEO Zak Brown. Furthermore, discussions have arisen about ownership structures within teams, contemplating the necessity for independent ownership to ensure fairness within the sport. The new commercial agreements for the next Concorde Agreement must be finalized before the end of the following year.
