F1’s Concorde Agreement: Are Teams Ready to Demand a Bigger Payday?
As the current Concorde Agreement edges towards its 2026 renewal date, Liberty Media’s CEO, Greg Maffei, anticipates the negotiations to be anything but a smooth ride. This pivotal document, an agreement between the FIA, the Formula One Group, and the teams, dictates crucial aspects such as prize money distribution, commercial rights, and the number of teams allowed on the grid.
Understandably, with Formula 1 experiencing a golden period marked by high viewership and commercial interest, teams are expected to negotiate ferociously for a larger slice of the revenue pie.
Liberty Media's Challenge
This marks the second Concorde Agreement overseen by Liberty Media, which initially inked the deal in 2020 amidst the chaos of the COVID-19 pandemic. On a recent podcast with James Allen, Greg Maffei gave a frank overview of the upcoming negotiations. “The teams and we will surely arm wrestle over numbers. The teams would like more money, I wouldn’t be stunned, and we might want more money— they shouldn’t be surprised,” Maffei mentioned with a candid laugh, underlining the inevitable financial tug-of-war.
The current Concorde Agreement has been widely viewed as a success, fostering growth among teams, sponsors, and the sport itself. The leadership of Chase Carey and Stefano Domenicali has been praised for creating an open negotiation process that has so far, encouraged goodwill among the parties. “The teams are making a lot more money, [there is more] growth and sponsors, and that excitement that has created goodwill,” Maffei noted.
The Stakes Are High
Despite the rosy outlook, both teams and F1 Management know they’re in for some tough negotiations. With the sport’s current healthy status, everyone wants a bigger slice of the financial pie. The big question remains: can the parties reach an agreement before racing begins under the shadow of potential delays?
Maffei remains optimistic. “There’s pretty good feeling and agreement, and the things are working well, and it’s in our collective interest to get something solidified. There have been times when they started racing without an agreed corporate agreement, and here we are several years before [it expires], and we have confidence, we’re going to get it done well in advance.”
Race Calendar Dilemmas
Another contentious issue is the race calendar. Currently capped at 24 races per year by the Concorde Agreement, there are no immediate plans to increase this number, despite burgeoning interest from new venues. “We actually have the right to go to 25 in the Concorde Agreement, but I think there’s common agreement that 24 is where we’re at, we’re not going to go higher,” Maffei explained, emphasizing the balance F1 seeks in maintaining historical circuits while incorporating exciting new locales like Las Vegas and Miami.
Further diversification of venues underscores the sport's desire to tap into new markets while rewarding its traditional bases. “We had a great race in China this year. I think there’s an opportunity in Southeast Asia. We have interest from places like Thailand, and we have Indonesia and South Korea,” Maffei said. “These are challenges, everybody wants to have a race. That’s the good news. Who can have a race; that’s exciting for fans, that helps grow the base.”
The negotiations for the 2026 Concorde Agreement are shaping up to be a defining moment for Formula 1. As teams wield their newfound commercial muscle, Liberty Media has its work cut out to ensure the sport remains balanced and lucrative for all stakeholders.