F1 Concorde Agreement: What is the concorde agreement and why do Mercedes oppose and Red Bull support it
|Published August 08, 2020
F1 Concorde Agreement: Christian Horner is optimistic of the deal being signed in a few days, in spite of Mercedes’ opposition to it.
There has been a lot of talk around the new F1 Concorde agreement, one that could bring a more level playing field to the sport of F1. A lot of times fans and critics have questioned how F1 favors a few team and the others are there just to make up the numbers.
This new agreement could help bring parity and improve the competitiveness.
What is the F1 Concorde Agreement
The Concorde Agreement lays down the rules of how Formula One is to be governed and operated. It is a contract binding the FIA, the Liberty Media, and all the Formula One teams. The current Agreement runs till the end of the current season for the 10 teams. The updated Concorde Agreement will drastically change the revenue structure, opting for a more equitable distribution of revenue between teams.
Ferrari’s Mattia Binotto and McLaren’s Zak Brown had earlier spoken out in support of the new agreement. Now, Red Bull has joined the fray, with Christian Horner confident of getting the deal over the line. He spoke about the pros of getting the updated Concorde Agreement in motion, despite concern from Mercedes regarding few clauses.
“I think the (Concorde) agreement is what it is. The contents of it is confidential between the teams and the promoter. You have to look at the bigger picture and look at it as a partnership, in many respects, that we need Liberty to bring as much revenue into the sport and interest and coverage. This will ultimately benefit the teams and all participants will benefit from.”
“I’m sure it will be concluded in the coming days.”
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Mercedes’ opposition to the Concorde Agreement
Mercedes opposition stems from the fact that Ferrari will continue to retain the veto power and also benefit the most financially. This was expected as Ferrari by far is the most successful team in F1, a team synonymous with the sport. Toto Wolff spoke out against the alleged disparity, and how this negatively impacts Mercedes the most out of all major teams.
While the concorde agreement has generally been brought in to ensure parity, Mercedes have reason to believe that it favors Ferrari and pins down Mercedes
“We are I would say the biggest victim in terms of prize fund loss in all of that. Ferrari has maintained an advantageous position. With Red Bull, it obviously balances out with Toro Rosso. So it’s us that are hurt the most.”
“I feel that Mercedes has contributed to the sport over the last years. Apart from being competitive on-track, we have the driver that has clearly the most global appeal. We feel that whilst being in those negotiations, we weren’t treated in the way we should have been.”
“In our point of view, I don’t feel ready to sign a Concorde Agreement.”
Wolff had also spoken about the agreement earlier, criticizing Ferrari and McLaren for openly speaking in favor of it. He also took offence to the fact that Mercedes was indirectly being hinted as the team which had issues with the new agreement. He concluded by saying that once the issues with the clauses are cleared. Mercedes will sign the Agreement.
“Negotiations should be taking place behind closed doors without a running commentary from competitors, and in that respect we are talking to Liberty. We are keen in staying in F1 and there are some clauses that bother us a little bit, but nothing that can’t be solved.”
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