Andretti experienced a big win in their bid to become the 11th team on the F1 grid, as they won the approval of FIA for their entry. However, the rest of the teams on the grid are far from happy with the decision, as it has invited a lot of questions and confusion regarding the logistics of the sport. Addressing the same, F1 Journalist Joe Saward believes dark times might be heading the way of the global authority.
🚨 | BREAKING NEWS: “Andretti is the only new team application approved by the FIA.
They will be referred to the FOM for commercial discussions”
[@ChrisMedlandF1]#F1 #Formula1 #Andretti #FIA pic.twitter.com/tupTo3izHj
— el Formula (@elFormulaOne) October 2, 2023
Writing in his online blog, Saward explained how critical F1 is to the workings and operations of the FIA. From a financial point of view, the FIA depends entirely on F1 to continue funding the department’s proceedings. Should the organization rub F1 the wrong way, they stand to cut the branch they’re currently sitting on, as F1 will immediately pull their funding, rendering the lifespan of the global organization equivalent to that of a “snail on a speedway.” Furthermore, the veteran Journalist adds FIA will invite nothing but trouble if it continues to add trouble to F1’s proceedings.
“Causing trouble is not likely to win concessions. If the FIA pushes too hard, all hell could break loose, or alternatively there could be ructions within the FIA as some of those involved seek to stop what is currently going on.”
Should Andretti enter the grid, the FIA will not be the only one to potentially suffer a financial setback. The dilution fee, according to the Concorde Agreement, will witness another taker cutting down on each team’s take, which they would certainly not welcome.
Andretti inclusion will add to the dilution fees woes of F1 teams
So far, the idea of another team joining the F1 grid has not received a warm welcome from the 10 teams already a part of the sport. While most of them claim it is because of their concerns over added traffic on the tracks and the inability of smaller venues to house another team, the reality of the matter boils down to one aspect– money. Currently, the Concorde Agreement allows for a dilution fee of $200 million, which is split between 10 teams. The prize money handed out by FIA at the end of last season, which depends on a team’s final position in the constructor’s championship, averaged nearly $115.7 million.
A reminder: one reason the other F1 teams don’t want Andretti to join is that there’s “no room” for them at the tracks. pic.twitter.com/vJu7lE4rqp
— Stuart Codling (@CoddersF1) November 23, 2023
Should there be an 11th team on the grid, it will eat a chunk out of both these amounts, massively cutting down on a team’s earnings. The money contributes greatly to the cost cap budget of each team, which they use to bring upgrades and repair their cars over a season. Hence, no team is too happy with the idea of a new entrant on the grid. As such, the only way to keep the teams happy is to increase the dilution fee, which can only happen when the next Agreement comes. The current agreement stays in effect till the end of the 2025 seasons, and the teams might be in favor of holding off an Andretti entry until 2026, so they won’t have to cope with any financial losses in the next two seasons.
