Andretti just needs an approval from the Formula One Management (FOM) to join the grid from 2026 onwards after they successfully received the FIA’s approval. Even though Michael Andretti has revealed that he would be willing to pay the whopping anti-dilution fee of $200,000,000 ($20,000,000 to each of the 10 teams), David Croft has explained on SkySports why the rest of the grid would now ask for more money.
When the Concorde Agreement was signed back in 2021, teams had agreed that for any new side to join F1, they would need to pay the rest of the outfits $20,000,000 each.
However, since the sport has significantly grown since then, Croft believes that the rest of the sides will now expect a much higher amount.
Will Andretti be willing to pay an amount higher than $200,000,000?
In a recent conversation with Craig Slater via Sky Sports F1’s official YouTube handle, David Croft explained how the valuations of most of the F1 teams have skyrocketed in recent years. As a result, he believes that Andretti will need to pay a much higher anti-dilution fee to the rest of the teams to compensate for the same.
“The dilution of that prize money pot when there is an eleventh team coming in, how does that work for the commercial rights holder and the ten other teams? Now at the moment, there is a $200,000,000 figure that is being banded around as a dilution fee ($20,000,000 for each team)“, explained Croft.
Croft added that this figure was the benchmark when the teams signed the Concorde Agreement back in 2021. However, in the past two years, the F1 expert believes that since the sport has grown significantly, teams will expect an amount as much as a whopping $600,000,000 ($60,000,000 for each side).
Slater then added that since the current Concorde Agreement runs out in 2025, the current teams are likely to revise the anti-dilution fee. Hence, Andretti will hope that the FOM accepts their proposal as soon as possible. Meanwhile, the FIA interestingly rejected the bid of another team despite them agreeing to pay the $600 million anti-dilution fee.
FIA refused to accept LKYSUNZ’s bid to join the grid
According to a report put out by Motorsport Total, the FIA refused to accept LKYSUNZ’s bid to join the grid as the deadline for the same had passed.
However, since LKYSUNZ were willing to pay such a staggering amount to join the grid, the current teams could ask for an amount as high as $600 million from any of the prospective sides in the future.
If this report is true, it does not bode well for Andretti, who may have to pay a much higher amount if they are keen to join the F1 grid. In the case that the American outfit refuses to pay such a figure, the FOM could reject their bid to join the grid despite the FIA giving their approval. As a result, this could set a precedent of prospective teams finding it very difficult to make a case for themselves to join the grid.
