READ MORE: The cost cap for F1 2021 has said what has changed and why? The McLaren F1 team, Scuderia Ferrari and Williams Racing were the first to announce that they had signed the new contract, with Formula 1 president and CEO Chase Carey welcoming the news that the current 10 teams had signed their signatures. The latest Concorde deal runs for a five-year period, from 2021 to 2025, and is the first to be concluded by the new owners of Formula 1 Liberty Media, under the direction of CEO Chase Carey. What impact will the Concorde agreement have on motorsport over the next decade? According to a Formula 1 press release, the new agreement “will reduce financial and course disparities between teams, help establish the conditions for competition and allow for closer races on the track that our fans want to see more.” The terms of the contract remain largely confidential, although the known provisions required the signatory teams to show up and show up at each race, guaranteeing their right to do so in order to assure the public of the newly acquired television of the sport that they would have a race to watch. In addition, perhaps most importantly, the agreement grants ECA the right to televise Formula 1 races – this right has been “leased” to Formula 1 Promotions and Administration, a company founded and owned by Bernie Ecclestone. Another important element was the stability of the rules, which is described as protecting teams from “the whims of the governing body”.  Maranello, Italy, August 18, 2020 – Ferrari N.V. (NYSE/MTA: RACE) announces that Ferrari S.p.A. has today signed the two contracts that will govern Scuderia`s participation in the FIA Formula 1 World Championship from 2021 to 2025. FIA President Jean Todt: “We are pleased that Ferrari has signed the new Concorde agreement, the three-way agreement that ensures a stable future for the FiA Formula 1 World Championship. This is the highlight of motorsport, and it is of course that the most successful team of all time in this series, in which it has always been a protagonist, should remain like this for many years. A new trade agreement to reduce financial disparities between teams, bridge competitive conditions and close the performance gap is the next part of this process. The new agreement is a big step in the right direction for a healthier sport, and while the teams have all contributed to it, Liberty deserves real recognition for this situation. Negotiations on the terms of replacement for the 2013 agreement began as part of wider discussions on the future of sport in 2017, but a deadline has been extended until 31 October 2019 to reach an agreement.
The agreement is expected to be concluded in January 2020.  was ultimately delayed due to the COVID 19 pandemic.  During the 70th weekend of the Grand Prix, Mercedes team chief Toto Wolff expressed his displeasure with the terms of the new agreement, which is expected to introduce a budget cap from the 2021 season and change the price distribution. Wolff thought his team would be the hardest hit.  In response to this request, the deadlines for signing the agreement, which had been set for 12 August, were postponed by one week.  However, after talking with Chase Carey, Wolff changed his attitude and agreed to sign the new agreement.  The new Concorde agreement aims to protect the value of existing teams by requiring new entrants to pay $200 million, divided equally among 10 existing teams, in exchange for the right to share the turnover for the first year of the competition. So far, newcomers only get the prize from the second year of the competition.  “This is an important agreement for f1, and even though the details are confidential, it offers stability and continuity for the future, so we are happy to put it above the line,” Horner said. “We said earlier this year that the Concorde agreement would take extra time to reach an agreement due to the fluid nature of the pandemic, and we are pleased to have reached an agreement between the ten teams on plans for the long-term future of our sport by August.