What`s The Concorde Agreement

The three teams refused to sign the proposed concorde agreement, initially with the support of the remaining teams. On September 9, 1996, the new Concorde agreement was signed by all teams except McLaren, Williams and Tyrrell. The agreement was to apply from January 1, 1997 to 2002. Ferrari`s argument for special treatment is obvious and can be summed up at best by a glorious part of its announcement that it has signed the new contract: “The only team that has participated in the World Cup every year”, with a community of supporters of “over 400 million worldwide”, and during a race on national soil in Mugello in just a few weeks, “the first team to reach the milestone will have participated in 1000 Grands. In a statement, the FIA said: “The FIA and Formula 1 can confirm today that all 10 teams have approved the new Concorde agreement. It has been preceded by in-depth discussions over the past 12 months with all teams, Formula 1 and the FIA. On August 18, 2020, Ferrari, McLaren and Williams announced that they had signed the new Concorde contract,[21][21] while the following day, Formula 1 announced that the other teams had also signed the contract. [23] The new agreement, which was the first to be concluded under the new owner Liberty Media, is valid for seasons 2021 to 2025 and will come into effect on January 1, 2021. In 1995, the FIA decided to transfer the commercial rights from Formula 1 to the Formula 1 administration for 14 years.

In exchange, Ecclestone would make an annual payment. McLaren, Williams and Tyrrell protested by rejecting the proposed Concorde Agreement (negotiations for which it began in 1993). Ken Tyrrell, in particular, was outraged that Ecclestone, as president of OFZL, negotiated the transfer of the organization`s rights to his own company. Tyrrell also objected to the agreement`s endorsement being kept secret and argued that the secrecy of the agreement would only benefit Ecclestone (by weakening the bargaining power of the other parties). The Concorde agreement is a contract between the International Automobile Federation (FIA), the Formula 1 teams and the Formula 1 group, which imposes the conditions under which the teams participate in the races and the sharing of television revenues and price. There were indeed eight separate agreements, all top secret: the first in 1981, the other in 1987, 1992, 1997, 1998, 2009, 2013 and the current agreement for 2021. However, the secret was broken by the famous race journalist Forrest Bond when the publication of the 120 page 1997 Concorde Agreement by RaceFax in late 2005. [1] Such an agreement at present speculate that some teams, such as Mercedes, could not stay upright. The agreement is, among other things, a trade document that defines how television revenues and Formula 1 prices will be distributed – and which are expected to expire at the end of the year. “The agreement is an important step in the development of Formula 1 and also represents an important opportunity for Williams to resume our journey back to the top of the pack,” said Claire Williams, the school`s assistant principal.

On March 27, 2006, the five teams supported by the Grand Prix Manufacturers Association – BMW Sauber, Renault, Honda, McLaren and Toyota – submitted their bids for the 2008 season and agreed to remain in the sport until 2012. [8] [9] On May 14, 2006, the five TEAMS supported by the GPMA signed a Memorandum of Understanding with commercial rights holders (CVC/Ecclestone) that served as the basis for the following agreement. [10] As a result, there was no complete agreement for the 2008 season, as the memorandum, extensions and agreements with the other teams served as a stop.”