Formula 1 Finalises New Concorde Agreement

Formula 1 has confirmed the completion of a new Concorde Agreement, the pivotal contract that establishes the structure, responsibilities, and financial framework governing the sport’s key stakeholders.

The agreement outlines the regulatory and governance relationship between Formula 1’s commercial rights holder, the FIA, and the 11 competing teams. With the previous Concorde Agreement set to expire at the end of this year, the newly signed deal will run from 2026 through 2030.

A revised financial structure has been incorporated, designed to strengthen the FIA’s capabilities in race regulation, race direction, stewarding, and technical operations. According to an official statement, the updated model will “enable the FIA to invest further in improved race regulation, race direction, stewarding, and technical expertise for the benefit of the Championship.” As always, the specific terms remain confidential.

Named after Paris’ Place de la Concorde, where the inaugural agreement was finalized in 1981 during a turbulent standoff between the FIA and the teams led by Bernie Ecclestone, the Concorde Agreement remains the backbone of Formula 1’s governance and commercial operations. Finalizing this latest iteration has taken most of the year, following teams’ individual commercial agreements with F1 reached in March.

FIA president Mohammed Ben Sulayem, re-elected unopposed last week for another four-year term, has consistently pushed for increased financial support for the governing body. The FIA relies heavily on F1 revenue and previously received roughly $40 million (£30 million) annually under the outgoing deal.

F1 president and CEO Stefano Domenicali praised the new agreement, stating:

“This agreement ensures F1 is in the best possible position to continue to grow around the world.”

Ben Sulayem added:

“This agreement allows us to continue modernizing our regulatory, technological, and operational capabilities, including supporting our race directors, officials, and the thousands of volunteers whose expertise underpin every race. We are ensuring F1 remains at the forefront of technological innovation, setting new standards in global sport.”

The duration of the agreement aligns with the next major regulatory cycle beginning in 2026, which will usher in significantly updated technical rules for both cars and power units. The new regulations will introduce fully sustainable fuels, a more balanced 50/50 split between internal combustion and electric power, and a smaller, lighter chassis designed to improve racing and efficiency.

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