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F1 Introduces an Enormous Fee for Potential Teams Entering the Sport

Published 09/12/2020, 10:29 AM EDT

The Concorde Agreement had received a mixed response after the teams signed the terms last month. However, presently a new clause comes to light. All the new teams that want to enter F1 will have to pay an entry fee of $200 million. This amount will further be divided among the already existing 10 teams.

The Concorde Agreement was introduced to maintain the competition between the teams. It has already introduced the budget cap from 2022 and reduced the special payments extended to certain teams. The Concorde governing body will take charge over the races from 2022 aiming at a race with all the teams on an equal footing. The committee has already reorganized the system in which the prize money is evenly distributed. Further hopes would be maintaining this level of equality uniformly throughout the sport.

The Agreement is structured to assist the existing teams and franchises, maintaining their worth. The team owners have invested a fortune into the races. However, the scenario isn’t similar to all of them. Due to the uneven distribution of income, the teams run on a huge loss.

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Zak Brown Clarifies Concorde Agreement

Zak Brown explained this move by the Concorde board clarifying that the decision will save F1. Well aware of previous aspirants who voiced their aim to be in an F1 race but never made it to the tracks, Zak Brown breaks down the clause for our understanding.

“What we’re trying to do as an industry is stop what we’ve had in the past where a USF1 announces they’re going Formula 1 racing and they never get to the track,

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“The $200m is intended to really make sure that if someone is coming into the sport that they have the wherewithal to do it, and we don’t have what we’ve historically had which is random announcements people are going to come in and then they never make it to the track

To further make matters a tad bit interesting, another clause has been introduced. It states, that even the existing teams will have to pay an entry fee every season. in context, Mercedes had to pay a total of $4.5m this year, making it the highest entry fee.

Mattia Binotto Confirms Ferrari F1 Retaining its ‘Special Power’ in New Concorde Agreement

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Written by:

Indrasish Ganguly is an F1 author at Essentially Sports. An avid fan of the F1 championship, the Kolkata based writer admires Lewis Hamilton the most on the F1 grid. His interest in racing stems from his love for cars and speed.

F1 Introduces an Enormous Fee for Potential Teams Entering the Sport

Zak Brown Clarifies Concorde Agreement

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