F1: Domencali again reiterates any new team will have to pay larger Entry Fee
–by Mark Cipolloni–
Since Andretti Global and General Motors announced it is targeting official entry into F1, news on the tender has been fairly quiet.
As we reported previously, Andretti has begun hiring for its potential operation, despite not yet being granted a place on the grid in 2026.
However, it seems in the background that the work has continued. F1 CEO Stefano Domenicali has revealed that a number of interested parties have expressed interest in joining F1. The tender will end on April 30th with a decision by the end of June.
Domenicali indicated on the latest investor call that a rethink of the value of the entry fee may now be needed. F1’s CEO stated that any evaluation of a team would include “financial stability” in relation to the sport: “The process of having another team has been launched by the FIA. In our governance, in our Concorde, there’s a possibility to do it.
“But the evaluation has to be done together to see from the technical perspective, from the sporting perspective, for the financial stability, and to make the bigger picture, if a new team will give value to the league, to the sport. And there will be a different position.”
Not so Fast
Let us remind you of this article: In reality, Andretti has them by the balls, they just don’t know it yet where we discuss the fact that the existing Concorde Agreement (where the $200 million is stipulated) runs through 2025 and any attempt to change it will be met with a slap on the wrist.
The European Union has very strict laws against anti-competition. Their arguments that they now deserve $600M instead of $200M are defacto restraint of trade moves attempting to stifle competition – strengthening existing teams and weakening any newcomer(s).
They can change it in the new Concorde Agreement for 2026, but to change it now will likely see them fined by the EU.
F1 now in a ‘different situation’
Domenicali revealed that the ‘anti-dilution’ payment of $200 million was agreed before the unprecedented growth that F1 now enjoys. As a result the $200 million entry fee although an astronomically high figure, may now be too low. F1 CEO highlighted the ‘different situation F1 finds itself in’:
“And I go back to one point, the so-called anti-dilution payment was done at $200 million, just a couple of years ago. Because at that time no one would have expected that the value of this business would rise up so much.
“Today the situation is totally different, for sure. And it’s our duty to make sure that we protect the business the best way that we can, and have a bigger picture.”
Although Andretti remain the most vocal party about joining the grid, others have also expressed an interest. This includes Panthera as reported by GPFans. Domenicalli not only confirmed this, but stated that some parties are “much more silent” than others: “Today, there’s so many that would like to come There are teams that are more vocal than others, some of them are much more silent, but they are really expressing their interest.
“As always in life someone has to make that evaluation. And we’re part of this process, and we’re going to do the right thing at the appropriate time through this year.”
However, F1 also needs to agree commercial agreements with F1’s owner Liberty Media. In a show of confidence, Liberty Media CEO Greg Maffei confirmed his agreement with Domenicali, reminding investors of the failed three teams in 2010: “Back to the point about the $200m,” he said. “Manor was the 11th team. And just before we bought into F1 [in late 2016], it went into administration in the UK and got sold for £1. The world has changed dramatically.”