Ferrari, McLaren and Williams are the first teams to commit to Formula One’s new Concorde Agreement which covers 2021-25 seasons.
The three longest serving teams have all signed the new agreement which legislates the terms under teams competing in races on top of how TV revenue and prize money is divided.
Speaking on Ferrari’s decision to sign the new deal, Ferrari CEO – Louis Camilleri said; “We are pleased to have signed up again to what is commonly known as the Concorde Agreement, which will regulate Formula One for the next five years.
Camilleri also noted that this agreement “… is an important step to ensure the stability and growth of the sport.”
McLaren CEO, Zak Brown echoed Camilleri’s thoughts by describing the new contract as “another important stride…” in the sport’s quest for sustainability and in best interests of everyone from F1 owners – Liberty Media to teams and fans alike.
Brown also acknowledged that all parties “had to give ground…..” in order for this contract to be achieved with the aim of creating “a more competitive, exciting and thriving Formula 1 for future generations…”
Williams Deputy Team Principal, Claire Williams meanwhile described the agreement for the team and F1 as “a major step forward.”
Williams also commented on the team’s expectations aligning with that of Liberty Media, saying; “Our expectations, aligned with Liberty Media, is that this next era will be characterised by closer and more exciting racing as a result of the new platform of regulations…”
The new era will also feature a cost cap for all teams, which will eventually settle at $135m per season from 2023 as next season will see costs capped at $145m before dropping to $140m in 2022 before a further $5m reduction in 2023.
FIA President, Jean Todt in particular was pleased to have Ferrari sign the new contract, describing the Scuderia’s decision as “natural…” and “… assures a stable future for the FIA Formula One World Championship.”
F1 Chairman and CEO, Chase Carey also commented on Ferrari’s decision to remain in the sport, saying “Scuderia Ferrari and Formula One have gone hand in hand since 1950 and we are happy that this relationship is set to continue for a long time, as it is part of the very DNA of this sport.”
This new Concorde Agreement will be the eighth such contract between teams, F1 and FIA and will commence 40 years to the year of the first such agreement in 1981.