A new Concorde Agreement: Why this is already an option

Liberty Media is keen to open up and extend the current Concorde Agreement. On the face of it, the teams are not unwilling to do so. But what is the Concorde Agreement, and why is it so important? GPblog explains.

What is the Concorde Agreement?

In the Concorde Agreement, the teams, the FIA and the owners of Formula 1 (i.e. Liberty Media) have contractually committed to each other. They promise to abide by all agreed requirements and regulations for the duration of that contract. This contract should be seen primarily as a commercial commitment.

One of the main things it covers is the distribution of TV money and the corresponding obligation for the teams to be present at every Grand Prix. To make the treaty last longer, its signing is often accompanied by major regulatory changes.

Until when does the current Concorde Agreement run?

The current agreement was only signed in 2021. The agreements set out in it are in force until the end of 2025.

So why talk about a new Concorde Agreement now?

Well, the parties involved have shown in the past that they find it quite difficult to reach an agreement. For instance, negotiations on the current Concorde Agreement began in 2017. Only in 2020 was there some kind of agreement, but due to the coronavirus pandemic, the actual signing of the document did not take place until 2021. There will also be different technical regulations in 2026.

Moreover, Formula 1 is currently doing well. "We think it is in everyone's interest, that of the teams, of us and of the FIA, to consolidate the success we have had together and show the world that we are moving forward together," Liberty Media CEO Greg Maffei said when discussing his company's annual figures.

What do the teams think about the idea of talking about a new contract now?

Guenther Steiner, Haas team boss: "I think if we start now, you know how long these Concord Agreements normally take. We all know that. So earlier we start, the earlier we get to a conclusion. So I'm not against this. If FOM wants to come and propose to us what they want to do for the next five years, which is actually the next seven years now, I think we as a team are pretty happy to talk with them."

Zak Brown, CEO of McLaren: "I think everything's working great. If you look at the health of the sport from a Liberty point of view, from the 10 racing teams point of view, the teams that want to come in, the promoters, the fans, the TV. So I'd like to see it get done sooner rather than later just for the stability and longevity of the sport. I also think it's a little bit of a rinse-and-repeat. I think it's working. I don't think there's much to add or change to the existing agreement, so I don't think it needs to be a prolonged conversation either. I'd pretty much be happy with a rinse and repeat, with a few tweaks here and there."