New Concorde Agreement Shifts Power Dynamics in F1
F1's new Concorde Agreement, valid from 2026-2030, has been signed, marking a notable power shift. Teams will pay higher entry fees to bolster the FIA's budget and have seen their voting power within the rule-making process reduced, strengthening the hand of the FIA and commercial rights holder.
A new Concorde Agreement has been signed, binding Formula 1's commercial rights holder, the governing body, and all eleven teams until the end of 2030. The deal, finalized at the FIA General Assembly in Tashkent, notably shifts the sport's power balance away from the teams and towards the FIA and Formula One Management (FOM).
Why it matters:
The Concorde Agreement is the foundational contract that dictates how F1 operates, governing everything from revenue distribution to rule-making. This new five-year pact, covering 2026-2030, represents a significant consolidation of authority by the sport's central bodies, potentially streamlining decision-making but at the cost of team influence.
The details:
- Increased FIA Funding: The system for team entry fees has been restructured. While the performance-based fee linked to previous season's championship points remains, the flat base fee paid by all teams has been increased. This change directs a larger share of total fees to the FIA's budget.
- FIA's Stated Goal: The additional funds are intended to allow the FIA to professionalize its F1 operations, with investments in modernizing structures for race directors, officials, and stewards.
- Reduced Team Voting Power: The voting thresholds within the F1 Commission have been lowered. For a simple majority, approval from four teams (down from six) is now required. For a super-majority on more significant changes, six teams (down from eight) are needed.
- The Result: This effectively dilutes the collective power of the teams, making it easier for the FIA and FOM to pass regulatory and commercial proposals without requiring broad team consensus.
The big picture:
This agreement follows the commercial terms settled earlier in 2024, which covered financial distribution. The latest signing finalizes the complete governance framework for the second half of this decade. The shift indicates a move by F1's owners, Liberty Media, and FIA President Mohammed ben Sulayem to create a more centralized and agile sport, reducing the potential for gridlock caused by team disagreements.
What's next:
The true impact of this power shift will unfold over the coming years as new technical and sporting regulations are debated for the 2026 season and beyond. The central question is whether this streamlined governance will lead to more decisive and progressive leadership for the sport or if it marginalizes the teams' technical and operational expertise to the sport's detriment. The responsibility now lies with the FIA and FOM to wield their enhanced influence judiciously.