“The Valuations Will Go Up”: Karun Chandhok Discloses How Andretti Can Reattempt Their F1 Entry With New Concorde Agreement

Andretti missed the opportunity to enter F1 in 2025 as Formula One Management (FOM) rejected their bid towards the end of January. Fans and experts around the world expressed disappointment on FOM not wishing to have Andretti-Cadillac as an eleventh team on the grid. However, Sky Sports experts Ted Kravitz and Karun Chandhok have explained that the American team can buy out an existing team to enter the sport but that may not happen before 2026.

Speaking in a 2024 season preview video on Sky Sports F1’s YouTube channel, Chandhok cited that the franchise system could take over F1 in 2026. That is when the teams will sign the new Concorde agreement. The Indian former driver explained, “Then effectively they will turn this into a franchise system I believe.”

Chandhok thinks that FOM may put away the entry fee system to the world championship, provided that F1 teams have grown in valuation exponentially. He added, “That will change and once that happens, the valuations will go up.
At that point, anyone potentially looking to sell might go through that.”

Usually, in global sporting leagues, teams are separate entities as franchises and have significant valuations. Given F1 has witnessed a huge surge in popularity and, in turn, their business health, all ten teams have also felt the effect.

Chandhok believes that teams such as Haas can use this as an opportunity to sell their side at a premium valuation. Buying an existing team could be a route that Andretti opts to take if they do not receive the green light from FOM by 2026. However, it seems that they have no interest at the moment to buy out an existing team.

Amid FOM’s rejection for F1 entry, what are Andretti’s plans?

Andretti had the option to buy out another existing team even under the current Concorde agreement. While they were looking to convince the existing teams, there were reports that Michael Andretti and Co. may look to buy Haas or AlphaTauri. However, both teams reportedly refused to sell and carry on their independent operations.

Besides, Andretti also wants to build a team from scratch and not take over an existing team like Audi is doing with Sauber. While buying out a team is the perfect way to enter F1 currently, the American team wishes to be the eleventh team to expand the sport’s foray into the USA.

While F1 already has Haas as an American team, Andretti feels they could be a better flagbearer of the United States. Unfortunately, that is not happening because FOM doesn’t feel Andretti may be competitive enough in the sport.

They rejected Andretti’s bid on account of several reasons. One of them was the absence of a power unit manufacturer when they wished to enter the grid in 2025. While GM’s Cadillac has partnered with them, their power unit program may not be good to go before 2028.

So, FOM has highlighted that they would be open to consideration for an entry with a new engine manufacturer in 2028. Besides this, FOM also felt Andretti may not be financially and sportingly equipped to compete with existing F1 teams. They also cited that the American brand may benefit more from visibility than contributing to F1’s growth as a sport.