F1’s reluctance to have Andretti in the championship was no secret. It became even more apparent when they granted Cadillac the go-ahead just weeks after Michael Andretti stepped down from the top position on the team. Still, this entry hasn’t come easy for the American automaker.
As per reports, Cadillac is set to pay an eye-watering $450 million in anti-dilution fees. That amount is more than double what a team needs to pay to enter F1, as per the current Concorde Agreement. It dictates that a new entrant has to pay $200 million to join the championship as a constructor. However, despite the steep hike, Helmut Marko doesn’t believe it’s enough.
“The payment that Cadillac is making is nowhere near enough to compensate for what we have invested a lot of money in over ten years,” the Red Bull Chief Advisor told oe24.
The anti-dilution fee is simply compensation to the incumbent teams for their reduced share in the prize money after the entry of an 11th team. Those on the grid currently, have undoubtedly put in a lot of money into the championship. These investments, however, have paid their due as F1’s growing popularity has increased their worth multifold over the years.
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As per a recent report from Sportico, Ferrari tops the current valuation list with $4.78 billion. That is an increase of $1.65 billion over their valuation in 2023. Haas, at the bottom of the list, has a valuation of $1.02 billion, up from $710 million in 2023.
The entry of a brand like Cadillac will only add value to the sport. By extension, the teams will benefit if Cadillac’s inclusion opens the floodgates for more sponsorships from the US — a market that F1 and Liberty Media (its owners) love.
Cadillac in F1: a big win for America?
One of the reasons F1 gave for rejecting Andretti’s bid to enter F1 was the lack of value addition to the championship. It claimed that it was the brand Andretti that stood to profit more from its association with F1, than the other way around. Therefore, the removal of ‘Andretti’ from the team’s name and Michael stepping down may have triggered the approval.
That, however, cannot rule out his participation as a silent partner in the team. Dan Towriss, the CEO of TWG Global, also took over the CEO duties of Andretti after Michael stepped down. TWG is a part-owner of the Cadillac F1 outfit and that could be the complex link between Michael and the team.
For now, not many know how much influence Andretti will command over F1’s soon-to-be brand-new entrant. But Cadillac entering F1 in 2026 is certainly a win for the American F1 fans. While they already have an all-American team in Haas, the Kannapolis-based outfit is not a works team. Haas buys its engines from Ferrari but Cadillac will manufacture its own power units from 2028 onwards. If they succeed, they could become a direct source of American pride.
