The Concorde Agreement and Its Impact on Formula 1

The upcoming Bahrain Grand Prix this week will not only mark the debut race attendance for FIA President Mohammed Ben Sulayem, but also ignite speculation surrounding the Concorde Agreement. This three-party deal between Formula 1 teams, rights holders Liberty Media, and the governing body, forms the backbone of the sport’s regulations, governance, and prize money distribution.

The Current State of the Concorde Agreement

With the current agreement set to expire at year-end, all teams, including the new entrant for 2026, Cadillac, have agreed on terms with Liberty Media. In a statement, Formula 1 confirmed that the teams had signed the 2026 Concorde Commercial Agreement, securing the sport’s long-term economic strength.

However, the FIA has yet to commit to the proposals, leading to speculation about their hold-up in signing the agreement. Some suspect this move may have caught the FIA by surprise, with Ben Sulayem potentially anticipating a tougher negotiation for improved financial terms.

The Financial Stakes and Potential Tensions

Ben Sulayem has expressed his desire to secure a greater financial share for the organization, citing increased costs associated with regulating Formula 1 races and expanding the calendar to 24 races. He also aims to invest in marshal training and develop a body of stewards.

However, there is concern that pushing for improved terms could lead to tense standoffs with Liberty Media and the teams, who are eager to finalize the agreement. This tension comes amidst growing scrutiny on Ben Sulayem’s reign, following threats of legal action from David Richards, Chairman of Motorsport UK.

The Governance Controversy: David Richards vs FIA

In an open letter last month, Richards accused the FIA under Ben Sulayem of breaching its own statutes. He also criticized a recent council meeting for which he was asked to sign a non-disclosure agreement, which he deemed a “gagging order.” The FIA has since responded but offered no real solutions to Richard’s concerns.

While Formula 1 and Liberty Media have remained neutral in this dispute, Richards’ concerns add to the growing scrutiny on Ben Sulayem’s presidency as he bids for a second term.