LONDON, Aug 19 — Formula One’s 10 teams have committed to the sport until at least the end of 2025 by putting their signatures to a new commercial ‘Concorde Agreement’.
The current agreement, which sets out the terms under which teams race and the share of revenues, is set to expire at the end of 2020.
Formula One and the governing FIA today said in a joint statement the agreement will secure the long-term sustainable future for the sport and reduce the financial and on track disparities between the teams.
“This year has been unprecedented for the world and we are proud that Formula One has come together in recent months to return to racing in a safe way,” Formula One Chairman Chase Carey said.
Negotiations over a new Concorde Agreement had been put on hold due to the Covid-19 crisis that hit the teams and sport financially.
“We said earlier in the year that due to the fluid nature of the pandemic, the Concorde Agreement would take additional time to agree and we are pleased that by August we have been able achieve agreement from all ten teams on the plans for the long term future of our sport,” Carey added.
“The new Concorde Agreement, in conjunction with the regulations for 2022, will put in place the foundations to make this a reality and create an environment that is both financially fairer and closes the gaps between teams on the race track.”
Formula One’s three oldest and most successful teams—Ferrari, McLaren and Williams—were the first to sign with rights holders Liberty Media and the FIA on Tuesday, with the seven other teams following suit on Wednesday.
“Over its 70-year history, Formula One has developed at a remarkable rate, pushing the boundaries of safety, technology... to the absolute limit and today confirms that an exciting new chapter in that history is about to begin,” FIA President Jean Todt said. — Reuters