$200 Million Not Enough as Andretti F1 Dreams Take Another Hit

Published 06/27/2022, 10:55 AM EDT

F1 is a mammoth organization that requires enormous sums of money to keep things functioning smoothly. The sport has amassed a massive following as well after its recent popularity surge. The teams are reaping the benefits of this popularity surge as well with endorsement and better fan engagement.

The popularity surge has definitely increased the value of everything related to F1. Even the cost that a team would need to bear to become a part of the grid has risen, or will rise according to the Haas F1 team boss Guenther Steiner. Each team’s stock has risen significantly and a new entrant would dilute the financial gains for the teams.

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Guenther Steiner gives his thoughts on F1’s Anti-Dilution Fee

Keeping the consequences in mind, an “Anti Dilution Fee” of $200 million was fixed in 2020, which would be divided among the teams. This is a precautionary measure set to mitigate the financial loss if such an occasion arises. However, a lot has changed since 2020 and especially in terms of the popularity of the sport.

The Haas boss is sure the amount will be significantly higher in the future to accommodate a new entrant. He said, “The entry fee was set a few years ago when the value of Formula 1 was different. When we signed the 2020 contract, the teams were still concerned with significantly less money than today.”

Steiner added, “At some point it will be adjusted. I don’t think that’s the biggest problem.”

The America-based team wouldn’t want more competition as they already struggle against the existing teams. However, the current season is kinder on Haas compared to the last, in which they finished without scoring a single point.

The $200 million entry fee does not guarantee entry into the F1

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As the folks at Andretti Autosport would tell you, it’s not all about the money. Michael Andretti has been trying to enter the traveling circus for some time now, but with no success so far.

The $20 million will not compensate for the dividing the money between 11 teams in the long run. And that’s the biggest roadblock Andretti is facing, with the theme being that they “must add value”.

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As things stand, a lot many people on the grid and in the F1 hierarchy, including Domenicali, even feel that an 11th team on the grid is not a necessity.

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Written by:

Mahim Suhalka is an F1 Author at EssentiallySports. This Sports Management post-graduate is an ardent supporter of the Mercedes AMG Petronas F1 team and their lead driver, Lewis Hamilton. The fact that Lewis dominated one of the most expensive sports in the world for all these years, despite his humble beginnings, has been a huge inspiration for Mahim and has made him a tenured fan of the competitive sport itself.

Edited by:

Ranvijay Singh

$200 Million Not Enough as Andretti F1 Dreams Take Another Hit

Guenther Steiner gives his thoughts on F1’s Anti-Dilution Fee

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The $200 million entry fee does not guarantee entry into the F1