- F1 generated US$1.12bn in media rights revenue in 2024
- Cadillac have reportedly paid US$450m to become 11th team next season
- Hamilton praises “neutral good leader” Domenicali on his contract extension
Formula One has confirmed that all teams have signed the latest Concorde Agreement which comes into effect from the 2026 season.
In a statement released ahead of yesterday’s Australian Grand Prix, the series confirmed the news that “secures the long-term economic growth of the sport”.
Formula One added that the series has “never been in a stronger position and all stakeholders have seen positive benefits and significant growth”.
The statement went on to thank “all the teams for their engagement during the process to reach the best outcome for the sport”.
The Concorde Agreement dictates the commercial terms by which all teams agree to race in Formula One, namely how media rights revenue and prize money is distributed.
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The most recent agreement covered the period between 2021 and 2025 which proved to be a particular stumbling block for General Motors’ entry into Formula One.
While it was eventually approved, existing teams opposed the addition of the Cadillac team as revenues would be diluted as a result. An anti-dilution fee of US$200 million forms part of the current Concorde Agreement which expires at the end of this year, but teams felt this did not reflect the present commercial success of the sport.
Reportedly, Cadillac backers GM and TWG Global have paid an anti-dilution fee of US$450 million to secure the entry, although it is unclear if this is the new price to join Formula One or if Cadillac negotiated a separate deal.
Formula One generated US$1.12 billion in media rights revenue in 2024, a near eight per cent increase on the year prior and the largest figure it has achieved to date. It is expected that teams will be granted a bigger percentage of this revenue from 2026 onwards to offset the addition of the Cadillac team.
This news follows the announcement that Formula One president and chief executive Stefano Domenicali has extended his contract with the series until 2029, one year before the next Concorde Agreement is up for renewal.
“It’s great to see [Formula One] grow, it’s great to see the audience grow, to see the sport moving in the right direction,” said seven-time world champion Lewis Hamilton.
“Thank God he’s staying, because it’s good to have a neutral good leader at the… helm.”
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