McLaren, Williams and Ferrari have all confirmed today that they have signed the new Concorde Agreement that will come into force next year and will regulate the sport’s commercial matters until the end of 2025.
The commercial contract between the Formula One Group, the Formula One teams and the Federation Internationale de l’Automobile dictates the terms by which the teams compete in races and how the television revenues and prize money is divided. The first Concorde Agreement was signed in 1981, named after the plaza in Paris where the discussions took place.
The current agreement is the seventh version that was signed in July 2013 and runs to December 2020. The eighth Concorde Agreement will come into force in January 2021 and was expected to near completion, but the discussions were delayed due to the coronavirus outbreak.
After expressing their intention at the 70th Anniversary Grand Prix to sign the new Concorde Agreement, McLaren and Williams have today confirmed that they have committed themselves to the sport for the next five years.
McLaren Racing CEO Zak Brown said: “Formula 1 has taken another important stride on the road to a sustainable, strong future with the new agreement. This is the right deal at the right time for the sport, its owners, its teams and, most of all, the fans.
“A more equitable sport is better for everyone: greater balance in the sharing of revenues among all the teams and clearer, simpler governance that cuts through vested interests and puts the sport first. This agreement will only make the F1 constructors collectively stronger in the long term.
“The new agreement complements and builds on the great work of F1, the FIA and all the teams during the past few months on the future financial, technical and sporting regulations. Everyone has had to give ground for the bigger outcome, which will be a more competitive, exciting and thriving Formula 1 for future generations, which in turn secures a healthy sport for both participants and fans alike,” he added.
“The new Concorde Agreement represents a major step forward, for both Formula One and Williams. As one of the sport’s longest running teams, we are pleased to see the future direction of Formula One confirmed for the next era of racing.
„Our expectation, aligned with Liberty Media, is that this next era will be characterised by closer and more exciting racing as a result of the new platform of regulations, which include more equitable revenue distribution and a first ever cost cap for our sport. The Agreement is a major milestone in the development of Formula One, and also represents a significant opportunity for Williams to continue on our journey back towards the front of the grid.”
Formula One's most successful team Scuderia Ferrari has also announced that it has signed the new Concorde Agreement that will ensure that the only team that has participated in every single season of the FIA Formula One Championship will stay committed to it for at least five more years.