The Concorde Agreement Saga: A Closer Look at Formula 1’s Commercial Deal

The upcoming Bahrain Grand Prix this week will not only mark the debut of FIA president Mohammed Ben Sulayem at an F1 race but also ignite speculation surrounding the Concorde Agreement. This three-party deal, crucial for the sport’s regulations, governance, and prize money distribution, has been a topic of discussion since the teams, including new entrant Cadillac, agreed on terms with Liberty Media.

The Expiring Concorde Agreement and Its Implications

The current Concorde Agreement is set to expire at year’s end. With all teams, including the newcomer, having reached an agreement with Liberty Media, the focus now shifts to the FIA’s stance on the matter. Some paddock sources suspect that the FIA was taken by surprise by this move, as they anticipated a more contentious negotiation for improved financial terms.

Despite F1’s announcement of all teams signing the 2026 Concorde Commercial Agreement, securing the sport’s long-term economic strength, the FIA has yet to commit to the proposals. This leaves Ben Sulayem under pressure to clarify the governing body’s delay in signing the agreement.

Financial Ambitions and Potential Tensions

It is no secret that Ben Sulayem aims for a greater financial share for the organization, citing the increased costs of regulating F1 races and expanding the calendar to 24 races. He also seeks investments in marshal training and the development of a body of stewards. However, there are concerns that his pursuit of improved financial terms could lead to tense standoffs with Liberty Media and the teams, eager to finalize the agreement.

The FIA’s Governance under Scrutiny

The relationship between Ben Sulayem and Formula 1 has been under scrutiny following David Richards’ threat of legal action against the FIA for its governance of motorsport. In an open letter last month, Richards, chairman of Motorsport UK, accused the FIA of breaching its own statutes under Ben Sulayem’s leadership. He also criticized a recent council meeting for which he was asked to sign a non-disclosure agreement, which he deemed a “gagging order.

In response, the FIA issued a letter on April 9th from general manager Alberto Villarreal, addressing but not resolving Richards’ concerns. While Formula 1 and Liberty Media have remained neutral in this dispute, it adds to the growing scrutiny on Ben Sulayem’s presidency as he seeks reelection.