Any new team wishing to compete in Formula 1 will have to pay $ 200 million, which will then be distributed among the ten existing teams – this is provided for by the new Agreement of Consent.
In August, the debate over the treaty ended, and all teams signed it, pledging to compete in the World Cup for the next five years, until 2025. In particular, this document stipulates revised conditions for the distribution of prize money, which have become fairer, including because the amount of special payments previously due to certain teams has been reduced.
These measures, as well as the transition to tight budgets planned for next year, are intended to make the Formula 1 economy more stable. One of these measures is the financial conditions that will have to be met by any new team wishing to participate in the championship.
Previously, there was a different method: new teams made a certain deposit, which was then gradually returned to them. The meaning of the current innovation is that it increases the value of such an asset, like any existing team in the championship, if its owners want to sell it, and also complicates the conditions for those who seek to get into Formula 1.
$ 200 million is an impressive amount, because even without this the owners of the new team need to invest a lot of money in their project. In fact, for most of these enthusiasts, this is a deliberately impossible condition.
However, Zach Brown, chief executive of McLaren Racing, doesn’t think so. In his opinion, the new method is not a barrier that few people can overcome, but a measure that increases the value of the franchise for participation in the World Championship at a new stage in the development of Formula 1, which will only grow over time.
“In the long term, at some point you will get that $ 200 million back,” Brown said. – In our industry, we are trying to stop the previously existing practice, when, for example, a certain USF1 team announced that they were going to compete in Formula 1, but it never came to that.
The point in introducing such a fee is that it will become a guarantee: if someone comes to the championship, they must have the necessary funds for this, and we will not have what happened in the past, when someone suddenly made rash statements about intentions to come to our sport, but they remained unfulfilled. In other popular sports, nothing like this happens, at least I think so. “
Existing teams must also pay an entry fee every season. For example, Mercedes had to contribute $ 556,509 this season plus $ 6,771 for every point earned in 2019. As a result, the championship team contributed about $ 5.4 million – this is a record high entry fee in the history of Formula 1.
All other teams paid a base fee of $ 556,509 plus $ 5563 per point.