September 15th, 2021

Concorde Agreement With Formula One

By JEREMY WARNE

The terms of the Concorde agreement are confidential, but some important details are known. Excessive special payments for several teams are over, with the exception of the reduction of Ferrari`s bonus for Ferrari. The contractual terms remain largely confidential, although its well-known provisions required the signatory teams to show up and compete at each race and guaranteed their right to do so to assure the newly acquired public of the sport that they would have a race to watch. Perhaps most importantly, the agreement gives the BAZL the right to broadcast Formula 1 races on television – this right has been “leased” to Formula One Promotions and Administration, a company founded by Bernie Ecclestone and owned by Bernie Ecclestone. Another important element was the stability of the rules, described as the protection of the teams against “the corporals of the board of directors”. [2] In 1995, the FIA decided to transfer the commercial rights of Formula 1 from BAZL to Formula 1 management for a period of 14 years. In exchange, Ecclestone would make an annual payment. McLaren, Williams and Tyrrell protested against the proposed Concorde agreement (negotiations of which began as early as 1993). Ken Tyrrell, in particular, was outraged that Ecclestone, as president of the BAZL, had negotiated the transfer of the organization`s rights to his own company. Tyrrell also objected to the addendum to the deal being secret and argued that the secrecy surrounding the deal only benefited Ecclestone (by weakening the bargaining power of the other parties). All three teams refused to sign the proposed Concorde agreement, initially with the support of the remaining teams. However, on 5 September 1996, the new Concorde Agreement was signed by all teams except McLaren, Williams and Tyrrell. The Agreement should apply from 1 January 1997 to 2002.

However, it goes without saying that a pot pot pot is available for a certain group of teams with historical importance and success. The agreement is, among other things, a commercial document that sets out how television revenues and Formula 1 prices are distributed – and which are expected to expire at the end of the year. The agreement is named after the Paris square where the talks took place. The Concorde Agreement is a contract between the Fédération Internationale de l`Automobile (FIA), the Formula 1 teams and Formula One Group, which defines the conditions under which the teams participate in the races and will distribute television revenues and prizes. In fact, there were eight separate concorde agreements, all the conditions of which were kept strictly secret: the first in 1981, others in 1987, 1992, 1997, 1998, 2009, 2013 and the current agreement for 2021. The secret was broken, however, by famed race journalist Forrest Bond when the 120-page concorde deal from 1997 to 1997 was published by RaceFax in late 2005. [1] What remains after the payments explained above is the price pot. This was previously divided into “column 1” and “column 2” payments, depending on participation (each team receiving the same slice) and championship position (plus a team finishes money).

It shouldn`t be a deterrent either, because if you know you`re engaging in a sport where you have a level playing field (in terms of sales distribution and budget cap), you`re more inclined to invest. And this investment is, to some extent, assured by the fact that the guarantee of an entry offers you a much more valuable asset that you can sell if you ever want to leave the sport. What does this mean for the race they will do from Spa-Francorchamps next weekend? Nothing. But teams can now plan for the longer term with much more certainty, and the framework has finally been set to improve the prospects for all teams from a business point of view and for many also from a competitive point of view. . . .

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