Concorde agreement signed

The FIA and Formula One Management have finally agreed a new Concorde agreement.

The Concorde Agreement is a contract between Motor Sports governing body the FIA and Formula One Management which details how the revenues are distributed around the sport.

The agreement was first introduced in 1981, but had elapsed at the end of last year.

Since the expiry of the last Concorde agreement the F1 teams and the Formula One Administration had been agreeing individual deals, but they will now be asked to sign up to this agreement which has been agreed between the two parties and will be in operation for seven years.

Formula One has an annual revenue of around £1billion and all parties involved in the sport have been calling for a large slice of the pie.

No specific details have been announced, but it would appear that one of the biggest winners is the FIA, who will be receiving a ‘significantly improved’ deal, which mirrors the greater responsibility the FIA will be taking in governing the sport.

With the teams incapable of seemingly coming together to agree regulations in regards to the technical regulations or the RRA, the FIA will be working on. new framework of sporting governance for Formula One.

‘I am very pleased that the agreement between the FIA and the Formula 1 Group has been concluded’. Formula One supremo Bernie Ecclestone said following the announcement.

While the FIA released a statement on their website: ‘The agreement reached by the FIA and the Formula 1 Group in July 2013, setting out the framework for implementation of the Concorde Agreement for the period 2013 – 2020, has now come into force, following the approval of the respective governing bodies of the signatory parties.

‘This agreement provides the FIA with significantly improved financial means to pursue its regulatory missions and to reflect the enhanced role undertaken by the FIA in the Motor Sport. The parties have agreed a strong and stable sporting governance framework which includes the Formula 1 Group, the FIA and the participating teams. The agreement lays down solid foundations for the further development of the FIA Formula One World Championship.

Now that the agreement is operative, the parties will move towards the conclusion of a multi-party Concorde agreement (getting the teams agreement).

It has indeed been a busy day for the FIA, with the FIA’s World Motor Sport Council meeting in Dubrovnik to discuss the possible draft calendar for Formula One next season.