Liberty Media is discussing with the F1 teams the new Concorde Agreement which must come into force from 2026. And this time too there are those who want to question the historic bonus that Ferrari obtains from the championship promoter. The Scuderia receives special financial treatment as it is recognized as having a unique role in the paddock, being the only team present in the world championship since the first championship in 1950.
At every renewal of the Concorde Agreement there are those who try to attack the Cavallino's extra earnings, hoping to receive a larger share of the proceeds, but even on this occasion the feeling is that Stefano Domenicali's staff has no intention of taking away the rights acquired by Ferrari, at most by revising downwards the share that is currently reserved for Maranello.
A draft of the new general terms that will regulate Formula 1 from 2026 to 2029 has already been sent to the ten teams for which counterarguments are awaited before arriving at the definition of the individual agreements: each team signs its own contract with the promoter at the moment where there is a basis of convergence on shared norms.
The Concorde Agreement establishes the percentage in which the teams receive a share of the prize money which is defined according to the result of the individual races and the final position in the Constructors' championship.
The current contract, which expires in 2025, gives teams a 50% share of F1 profits. However, the share is destined to decline if greater profits than expected are generated. With revenues exceeding $3 billion last year, teams enjoyed a 45% premium share.
Under the terms of the current Concorde Agreement, Ferrari receives compensation equal to at least 5% of the entire prize pool if the amount distributed does not exceed $1.1 billion. The Scuderia had also obtained an incremental share, a sort of escalator, which would grow as earnings increased.
Among the financial issues under discussion there would be the desire to remove possible incremental terms from Ferrari, granting it a fixed 5% regardless of the prize money threshold.
Obviously the negotiations are very confidential, so the parties involved are reluctant to give details that must remain secret. The maximum confidentiality applies to the draft of the Concordat Pact that is circulating and the shared obligation is that of keeping our mouths shut…
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