Formula 1 has put new Concorde Agreement on “back burner”

Formula 1 boss Chase Carey says that negotiations over the new Concorde Agreement have been put “on the back burner” while the short term issues caused by the COVID-19 crisis are addressed.

Formula 1 has put new Concorde Agreement on “back burner”

The current Concorde runs out at the end of this year, and a new one has been taking shape over the past couple of years as the sport’s new owners restructure the financial arrangements for the teams, with a more equitable payment system.

As it has not yet been agreed and signed in theory, teams are not officially committed to the sport beyond the end of this year.

“We had been in the final stages of completing the Concorde Agreement when the coronavirus crisis turned everything on its head,” Carey said in a call with Wall Street analysts.

“We decided to put the Concorde on the back burner for the short term, and prioritise addressing issues relating to 2020 first.

“As we move forward with the 2020 calendar and finalise regulatory changes with the teams we will once again return to completing the Concorde Agreement in the immediate future.”

Asked if in the circumstances the current agreement could simply be extended into 2021, Carey insisted that a new one could implemented even without the teams agreeing to its terms.

“The reality is once you get to 2021 with the FIA on the Concorde we can just deal with it unilaterally, say these are the rules of the road, or this is the structure that exists, so we don’t have to extend anything.

“We can essentially implement and say, ‘If you’re racing, that’s the terms on which you’re racing.’ Obviously that’s not how we’re looking to conclude it with the teams.

“But the Concorde Agreement when we put it forward will be the Concorde Agreement that goes into effect in ’21, and we are able to unilaterally do that.”

Read Also:

Carey remains optimistic that the 2021 cost cap can be finalised soon, with a move from $175m to $145m – and a lower figure in subsequent years – the major subject of debate in recent weeks.

However, he acknowledged that it won’t be easy for the three big teams to downsize and meet the cap.

“We respect the fact that there are a number of teams that spend significantly more, and respect that they will obviously have to manage through challenges to get to the cap.

“The goals which drove the cap, which were improved competition, better action and healthier business for everybody in it, the cap helps achieve that.

“There have been different thoughts about the specifics, it’s a much more difficult sport to put a cap into than the team sports in the USA, where you just have salaries, here you’ve got all sorts of moving parts that come out of the technology of the sport and the engineering of the sport.

“And so how you implement that cap has probably been more of a discussion than does the cap make sense?

“Again I’m sure there will be pressures on teams that have to make significant changes to get to the cap, but I think there’s been unanimous agreement that the goal of the cap, and those broad-based goals, are goals we all share, and that it will help make the sport better for fans and everybody in it.”

Carey believes that the sport can return to normal longer term, although he acknowledged that there could be “lasting impacts” from the crisis.

“First and foremost we have to make sure that in 2021 we’ve got the business looking like we expected it to look four months ago, and have the same future that we expected four months ago, so really what we’re managing through is a short one-time event for us.

“We think the support and interest we’ve got, whether its from fans or partners, can enable us to get back there. I’m not saying there won’t be some lasting impacts.

“But the strength of events like ours I think the fans will come back, events like ours will continue to rise in strength, and I think he type of partners we have seem to be more supportive than ever, even if you have a degree of shake out in the economy.”

shares
comments
Kvyat "wasn’t happy" to learn of Albon’s Red Bull promotion

Previous article

Kvyat "wasn’t happy" to learn of Albon’s Red Bull promotion

Next article

Michael Schumacher vs Alain Prost: How their stats compare

Michael Schumacher vs Alain Prost: How their stats compare
Load comments
Why momentum is again behind Australia's aces Prime

Why momentum is again behind Australia's aces

At the Italian Grand Prix Daniel Ricciardo turned around a troubled F1 season and, in F2, Oscar Piastri demonstrated once again that he is a potential star of the future. BEN EDWARDS weighs up the prospects of F1 having two Australian stars

The tough balancing act facing Schumacher’s Netflix film producers Prime

The tough balancing act facing Schumacher’s Netflix film producers

Michael Schumacher is the latest sporting superstar to get the ‘Netflix treatment’, with a special documentary film airing on the US streaming giant’s platform this month. DAMIEN SMITH has the inside track on how the filmmakers gained access to tell the human story behind one of Formula 1’s most publicity-shy champions - while the man himself, for obvious reasons, is in absentia… 

Formula 1
Sep 25, 2021
Why Verstappen should be confident of Russian GP recovery Prime

Why Verstappen should be confident of Russian GP recovery

For the second race in a row, Mercedes has ended the first day of track action on top. It’s in a commanding position at the Russian Grand Prix once again – this time largely thanks to Max Verstappen’s upcoming engine-change grid penalty. But there’s plenty to suggest all hope is not lost for the championship leader at Sochi...

Formula 1
Sep 24, 2021
Why dumping the MGU-H is the right move for F1 Prime

Why dumping the MGU-H is the right move for F1

OPINION: With its days apparently numbered, the MGU-H looks set to be dropped from Formula 1’s future engine rules in order to entice new manufacturers in. While it may appear a change of direction, the benefits for teams and fans could make the decision a worthwhile call

Formula 1
Sep 23, 2021
The floundering fortunes of F1’s many Lotus reboots Prime

The floundering fortunes of F1’s many Lotus reboots

Team Lotus ceased to exist in 1994 - and yet various parties have been trying to resurrect the hallowed name, in increasingly unrecognisable forms, ever since. Damien Smith brings GP Racing’s history of the legendary team to an end with a look at those who sought to keep the flame alive in Formula 1.

Formula 1
Sep 22, 2021
Why the 2021 title fight is far from F1's worst, despite its toxic background Prime

Why the 2021 title fight is far from F1's worst, despite its toxic background

OPINION: Formula 1 reconvenes for the Russian Grand Prix two weeks after the latest blow in ‘Max Verstappen vs Lewis Hamilton’. While the Silverstone and Monza incidents were controversial, they thankfully lacked one element that so far separates the 2021 title fight from the worst examples of ugly championship battles

Formula 1
Sep 22, 2021
How Mika Hakkinen thrived at Lotus Prime

How Mika Hakkinen thrived at Lotus

Mika Hakkinen became Michael Schumacher’s biggest rival in Formula 1 in the late-90s and early 2000s, having also made his F1 debut in 1991. But as MARK GALLAGHER recalls, while Schumacher wowed the world with a car that was eminently capable, Hakkinen was fighting to make his mark with a famous team in terminal decline

Formula 1
Sep 21, 2021
The forgotten F1 comeback that began Jordan’s odyssey  Prime

The forgotten F1 comeback that began Jordan’s odyssey 

Before Michael Schumacher – or anyone else – had driven the 191 (or 911 as it was initially called), Eddie Jordan turned to a fellow Irishman to test his new Formula 1 car. JOHN WATSON, a grand prix winner for Penske and McLaren, recalls his role in the birth of a legend…

Formula 1
Sep 20, 2021