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F1: FIA launches formal application for new teams, 1st deadline is today (Update)

Posted by AR1 staff

If Andretti Global and Panthera Asia want to own a Formula One team, they need to get that paperwork in today.

The Switzerland-based governing body of the race circuit, the Fédération Internationale de l’Automobile (FIA), has set Feb. 15 as the date preliminary applications are due for teams wishing to gain entry into the league. The first application is a straightforward expression of interest detailing who is applying, accompanied by a non-refundable deposit of $20,000.

Full applications and the balance of the $300,000 application fee are due by the end of April, with the FIA making its decision on any expansion by the end of June.

How many teams FIA will add is a matter of speculation.

Liberty Media Corp., which owns the commercial rights to F1 under a 100-year contract with the FIA, has generally expressed a belief that popularizing the sport will probably require more teams, not fewer, especially as it seeks to expand the league’s fan base beyond its western European core. “There are a lot of people who would like us to do it, most of them want to buy in,” said Liberty Media CEO Greg Maffei, at a Miami conference last year.

The highest profile bid is coming from Michael Andretti and General Motors. Andretti Global and GM announced last month they have teamed up to field an F1 entry. “I feel very strongly that we are suited to be a new team for Formula One and can bring value to the series and our partners, and excitement for the fans,” Andretti said in a press release.

A second known bidder is Panthera Team Asia, an organization co-founded by London-based Benjamin Durand, who has told F1 industry publications that its application will emphasize expanding F1’s appeal into Asia, where it would be the first team based in the region, though its specific location is to be determined. Durand’s group sees Asia, especially China, as the next logical focus for F1 after its current emphasis on cementing the circuit in the U.S. The executive confirmed in a message the group is applying to F1, but declined to comment further.

February 2, 2023 

In a statement issued on Friday, the FIA said it would evaluate the potential of new F1 teams to enter the sport based on “rigorous financial and technical analysis” as well as “sustainability and positive societal impact criteria.”

Press Release

The Fédération Internationale de l’Automobile (The FIA) today announced the official launch of an application process (see below) to identify prospective teams seeking to participate at a competitive level in the FIA Formula One World Championship.

The FIA welcomes interest from entities with a serious intent to enter the FIA Formula One World Championship. The high level of interest from a number of potential candidates is further proof of the popularity and growth of the Championship.

All applicants will undergo thorough due diligence. The assessment of each application will cover in particular the technical capabilities and resources of the applicant team, the ability of the team to raise and maintain sufficient funding to allow participation in the Championship at a competitive level and the team’s experience and human resources.

For the first time ever, any candidate would be required to address how it would manage the sustainability challenge and how it plans to achieve a net-zero CO2 impact by 2030. Any prospective F1 team would also need to illustrate how they intend to achieve a positive societal impact through its participation in the sport. This would help meet the mutual aims of the FIA and Formula One Management.

The overall long-term interests of the Championship, involving all stakeholders, will determine which candidates are selected together with the applicable regulations and governance arrangements.

The terms of the formal application process (together with the complete selection criteria, applicable deadlines, legal requirements and other conditions) will be communicated to candidates that submit a preliminary expression of interest to the FIA.

FIA President Mohammed Ben Sulayem, said: “The growth and appeal of the FIA Formula One World Championship is at unprecedented levels. The FIA believes the conditions are right for interested parties, which meet the selection criteria, to express a formal interest in entering the Championship.

“For the first time ever, as part of the selection conditions, we are requesting that candidates set out how they would meet the FIA’s sustainability benchmarks and how they would make a positive societal impact through sport.

“The process is a logical extension of the positive acceptance of the FIA’s 2026 F1 Power Unit Regulations from engine manufacturers which has attracted Audi to Formula 1 and created interest among other potential entrants.”

Andretti and Cadillac will know by the end of June whether they will be approved.  If approved, the earliest they can enter a car on the grid will be 2025, but why do that when the following year everyone will have to design 100% new cars and new engines. Any new team joining the grid will need approval from the FIA and the teams themselves, as per the Concorde Agreement struck between the governing body, Formula 1 and the current constructors, as well as paying a one-off $200m entry fee to be split between the current teams as an ‘anti-dilution’ payment, to recoup any lost prize money by another team joining Formula 1.

Mark Cipolloni reporting for AutoRacing1.com

Application Process

FIA FORMULA ONE WORLD CHAMPIONSHIP CALL FOR EXPRESSIONS OF INTEREST

The FIA has decided to open an application process to seek to identify one or more new F1 teams to participate at a competitive level in the FIA Formula One World Championship as from the start of the 2025, 2026, or 2027 season.

The overall long-term interests of the Championship, together with the applicable regulations and governance arrangements, will determine which candidates (if any) are selected.

The terms of the formal application process (together with the complete selection criteria, required information/documentation, applicable deadlines, legal requirements, and other conditions) will be communicated to candidates that submit a preliminary expression of interest by email to the FIA Regulatory and Governance Department at F1teamcandidates@fia.com, which must include the following initial information:

  1. a cover letter introducing the candidate;
  2. the candidate’s full contact details, including the name of its primary contact person, telephone number, email address, and postal address;
  3. the candidate entity’s certificate of incorporation, the address(es) of its registered office and (if different) administrative office/headquarters, the date of founding/registration of the candidate entity, company number, a copy of its statutes/memorandum and articles of association or equivalent, as well as details regarding its corporate structure (including related entities), management structure and executive personnel;
  4. the identity of all shareholders and the ultimate beneficial owner of all shares;
  5. a curriculum vitae for each director and officer of the candidate entity;
  6. information on the candidate’s relevant experience and capabilities in the automobile and/or motorsport sector, including technical experience, racing experience, facilities, equipment, and engineering resources;
  7. a duly completed Non-Disclosure-Agreement, which is included as an Appendix to this document; and
  8. proof of payment of the initial administration fee of US $20,000 to the following account:

Account holder: FIA

Bank: Crédit du Nord, 50 rue d’Anjou, 75008 Paris IBAN CODE: FR76 3007 6020 2025 3680 0020 034 SWIFT CODE: NORDFRPP

The administration fee is non-refundable, but will be offset against the total application fee of US $300,000, which the FIA will require from candidates subsequently participating in the formal application process. This cost will cover the extensive and thorough due diligence checks that need to be carried out by FIA staff and external advisors.

The FIA will disclose the complete requirements for the formal application to candidates who have completed the preliminary application, within 48 hours from the submission of their initial expression of interest, or 17:00 CET on Friday 17 February, whichever is the latest.

By way of indication only, the selection criteria for the formal application process will include, among other things:

  1. the technical ability and resources of the team;
  2. the ability of the team to raise and maintain sufficient funding to meet its financial obligations and to allow participation in the Championship at a competitive level;
  3. the ability of the team to meet and comply with its obligations under the F1 Sporting, Technical, and Financial Regulations;
  4. a detailed business plan (including financial projections) for the first 5 years of the project;
  5. the team’s experience and capabilities in the automobile and/or motorsport sector (including technical experience, racing experience, facilities, equipment, and engineering resources) and relevant staff headcount/ experience;
  6. whether the team and all individuals proposing to participate in the ownership, control, or management of the team are fit and proper persons;
  7. considerations of sustainability, EDI (Equality, Diversity, and Inclusion), and societal benefit; and
  8. the FIA’s assessment of the value that the candidate may bring to the Championship, including consideration of its reputation and

The F1 Commercial Rights Holder may also impose additional selection criteria/conditions (to be advised separately during the application process).

All applicants (and all individuals proposing to participate in the ownership, control, or management of the team) will be required to undergo thorough due diligence checks as part  of the formal application process.

The FIA anticipates that the deadline for submission of formal applications will be 30 April 2023, leading to a decision by the FIA on any application(s) by 30 June 2023. For the avoidance of doubt, no new applicant has an automatic right of entry to the Championship and the maximum number of teams competing in the Championship up to and including the 2025 season is capped at 12. Existing F1 teams will be given priority over new applicants. In the event that no applicant is considered suitable by the FIA and/or by the F1 Commercial Rights Holder, no new F1 team(s) will be selected.