Domenicali’s Hard Line: Increased Entry Costs for New F1 Teams

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The FIA (a governing body) started a new application process in February. It’s still going and they’re expecting to make a decision in June when they look at all the applications they’ve received.

If an applicant does get accepted, the existing 10 teams are asking for them to pay $200 million. This money then gets split between those 10 teams as it’s supposed to help cover their losses from extra competition.

Some people think the value of a team like Williams was taken into account when signing the last Concorde Agreement. But, thanks to a cost cap, the show Drive to Survive and picking up after the COVID years, the sport is doing better than it used to be and that has caused team prices to go up too.

The people currently in charge are aiming for a new number since it aligns with the cost of doing an existing project. The amount mentioned is as high as $600 million. Domenicali has said that since a lot has happened since the original figure was given, any team joining needs to bring something valuable to the sport.

The boss of Formula 1, Stefano Domenicali, spoke to the investors about a process for adding an extra team. In the regulations of F1 (‘Concorde’), this can be done but everyone has to look at all the details and make sure it is a good idea from many perspectives: technical, sporting, financial stability and overall value.

Two years ago, $200 million was paid to protect the business. Back then nobody believed this business would become so valuable. Now it’s our job to make sure that we safeguard the business and look at the broader perspective. Plus, competitors are trying to increase the Andretti F1 entry fee from $200 million to $600 million!

– Domenicali thinks that Andretti was not wise to call F1 teams greedy.

– Andretti is the only team who has shown an interest in joining the F1 grid.

– Even though Andretti/Cadillac’s bid are well known, Domenicali says there are other potential teams who want to join too, some of them are quite vocal about it and others remain silent.

The CEO of Liberty Media, Greg Maffei, said that someone needs to evaluate where teams should be placed and they will try to do the right thing. He also mentioned how team values have increased since Manor was bought for only £1 when going into administration in 2016.

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