Site logo

Many teams eager to enter F1, says Domenicali

NEWS STORY
17/04/2023

F1 CEO, Stefano Domenicali claims that there are many new teams expressing an interest to enter the sport, whilst admitting that the anti-dilution payment will need to rise significantly.

His claim comes at a time at least three prospective teams are known to have expressed an interest and Hong Kong billionaire, Calvin Lo says that he is in talks with a number of others.

"Today, there's so many that would like to come," said Domenicali during a conference call with investors. "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," he added. "We're part of this process, and we're going to do the right thing at the appropriate time through this year."

However, the Italian admitted that the current anti-dilution fee of $200m is expected to increase significantly, with the teams understood to be demanding as much as $600m, which would be split among the existing outfits.

"The process of having another team has been launched by the FIA," said Domenicali. "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.

"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, and it's our duty to make sure that we protect the business the best way that we can, and have a bigger picture."

"Manor was the 11th team," interjected Liberty Media CEO, Greg Maffei. "And just before we bought into F1 it went into administration and got sold for £1. The world has changed dramatically."

Agreement on the anti-dilution fee will form a large part of the new Concorde Agreement, the agreement that essentially holds the commercial aspects of F1 together. The existing Concorde runs until 2025, having finally been agreed in 2021, however Maffei is confident everything will be in place before then.

"Stefano and I were talking about it this morning, what we might want and when to go," said the American. "We think it is in everybody's interest, the teams' and ours and the FIA's, to solidify the success we collectively have had and show the world that we're together, moving forward.

"But I don't think this is going to go to the end the way prior ones have done," he added.

Other than COVID, agreement on the budget cap and prize money distribution caused a long delay to the current agreement.

However, with these issues long settled and the sport enjoying a boom, Domenicali believes it is in everyone's best interest to sign up and concentrate on improving the show.

"If you think back, more than two, less than five teams were asking for loans from Formula 1 to stay alive and to survive and to make sure they were participants in the Grands Prix," he said. "Today, with the things that we've done, the season's very healthy, very sustainable financially, and this has given value to our business. That's already something that has been recognised by all the teams.

"So at the proper time, we're going to sit around the table, the teams will understand what we brought for them, and we will understand what we believe will be the right strategy to tackle that."

LATEST NEWS

more news >

RELATED ARTICLES

LATEST IMAGES

galleries >

  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images

POST A COMMENT

or Register for a Pitpass ID to have your say

Please note that all posts are reactively moderated and must adhere to the site's posting rules and etiquette.

Post your comment

READERS COMMENTS

 

1. Posted by kenji, 18/04/2023 1:26

"@meatball....If MbL gets the nod and Andretti do not then that will be, IMO, a travesty. Andretti is world class and has the chops ahead of even some current grid members. They are racers, first and foremost. Again, from what has been published, they appear to have been treated appalingly by those that control the entry list. It's my suspicion that certain teams are scared of more competition and will do anything to prevent this occurring. I certainly hope that Andretti takes all the steps available to ensure that they get treated fairly and without bias."

Rating: Positive (2)     Rate comment: Positive | NegativeReport this comment

2. Posted by meatball, 17/04/2023 16:04

"Guaranteed that Money-bags Lo gets in before the Andretti's ever do. It's clear that F1 has no interest in racing pedigree. Only the depth of the pockets."

Rating: Positive (1)     Rate comment: Positive | NegativeReport this comment

3. Posted by ancient70!, 17/04/2023 12:39

"F1 is a closed shop cartel, and yes the entry fee is outrageous. F1 also conveniently forgets when referring to al the struggling teams in past, that they were lured to enter with the promise of a budget cap (40m if I remember correctly) and access to competitive and affordable engines. None of which ever happened. Of course, some of them would have folded even if all the promises were realised, but many would most probably have made it. "

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

4. Posted by kenji, 16/04/2023 12:28

"And I thought that futures trading was an edgy financial risk!!!"

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

5. Posted by Celtic Tiger, 16/04/2023 2:54

"I wonder if Domenicali get a bonus in the paycheck for every time he says "bigger picture". These two have been drinking too much of their own kool-aid.

$200M was/is disgusting and $600M is just outrageous and greedy. I wonder what the EU competition laws would say about the FIA and teams acting like a cartel, trying price out any newcomers into the sport under the guise of "brand protection"."

Rating: Positive (4)     Rate comment: Positive | NegativeReport this comment

6. Posted by Superbird70, 15/04/2023 16:39

"@Chester-Definitely agree with your last point. Too risky to join now. Maybe wait until year 2 of new regulations.
The NFL is looking for parity in the standings not in the earnings but there still exist have and have not teams in terms of on field success solely due to management."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

7. Posted by Chester, 15/04/2023 12:59

"@Superbird I think the NFL is not a fair comparison. An NFL team gets equal league revenue sharing, and can only out-earn another team by merchandise sales and stadium naming rights. And further, NFL teams get very fair access to equal player talent, which F1 teams (driver and car)do not.

The F1 anti-dilution fee may be money down the drain for a team who enters in 2024 at current peak F1 popularity, and then exits later (at price willing buyer will pay) when the Drive To Survive phenomenon subsides.

Therefore, I think $600 million entry fee is outrageous for the risk involved."

Rating: Positive (2)     Rate comment: Positive | NegativeReport this comment

8. Posted by Superbird70, 15/04/2023 4:15

"Probably not far off for the fees. An NFL team is up for $6 billion. A league of 32 teams."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

9. Posted by F1nerd, 14/04/2023 20:46

""improving the show" that all we hear from these people. We are talking about Formula 1 which is surely a sport.
If the fee is going to be $600m and there are so many wanting to enter F1 why not select 2 and double the money. Having 12 teams (24) cars on the grid would surely "improve the show"."

Rating: Neutral (0)     Rate comment: Positive | NegativeReport this comment

10. Posted by Burton, 14/04/2023 17:40

""The league"? Oh ffs."

Rating: Positive (2)     Rate comment: Positive | NegativeReport this comment

Share this page

X

Copyright © Pitpass 2002 - 2024. All rights reserved.

about us  |  advertise  |  contact  |  privacy & security  |  rss  |  terms