All ten Formula 1 teams have signed up to the new Concorde Agreement, the FIA and Formula One Management have jointly announced.
The Concorde Agreement contractually binds teams to the sport, with their participation guaranteed in return for commercial benefits and prizemoney.
Previous versions of the Concorde Agreement have been heavily weighted in favour of the most successful teams based on complex calculations that factor in their position in the Constructors’ Championship standings, while also awarding additional bonuses to certain teams based on their historic value to the sport.
The newest version signed by the teams features substantially revised terms that reduce the disparity of prizemoney payments between the frontrunning and backmarker teams.
“This year has been unprecedented for the world and we are proud that Formula 1 has come together in recent months to return to racing in a safe way,” said Chase Carey, Formula 1 Chairman and CEO.
“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 to achieve agreement from all ten teams on the plans for the long term future of our sport.
“All our fans want to see closer racing, wheel to wheel action and every team having a chance to get on the podium.
“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.”
Jean Todt, FIA President, added: “The conclusion of the new Concorde Agreement between the FIA, Formula 1 and all ten of the current teams assures a stable future for the FIA Formula One World Championship.
“Over its 70 year history, Formula 1 has developed at a remarkable rate, pushing the boundaries of safety, technology and competition to the absolute limits, and today confirms that an exciting new chapter in that history is about to begin.
“During the unprecedented global challenges currently facing everyone around the world, I am proud of the way that all of Formula 1’s stakeholders have worked together over the past months for the best interests of the sport and the fans to agree [on] the pathway for more sustainable, fair and exciting competition at the pinnacle of motor sport.”
The renewal of the Concorde Agreement comes before the sport introduces a raft of new regulations over the coming two years. A cost cap will come into place in 2021, while sweeping new technical regulations will be introduced in 2022, having been delayed by a year as a cost-saving response to the COVID-19 Coronavirus pandemic.
Image via Mercedes-AMG Petronas Formula One Team