Liberty Media, the commercial rights holder of Formula 1, recently released its 2023 annual report. This report highlights the goal of improving the overall value of Formula 1 as a sport and enhancing its financial performance. However, there are a couple of key points in this report that contradict Formula One Management’s (FOM) rejection of Andretti’s entry into the sport.
Earlier this year, in January, FOM was set to give the final verdict on whether Andretti Global would be allowed entry into F1 as its 11th team. Although the FIA, the sport’s governing body, had already approved Andretti’s entry, FOM decided to reject their bid.
They cited concerns over the competitiveness of the Andretti bid and believed that F1 would bring more value to the Andretti brand rather than the other way around. Liberty Media’s annual report, however, focuses on these very two key factors: on-track performance and long-term financial stability.
A bipartisan group of U.S. senators is urging the Biden administration to investigate Formula One’s (F1) decision to reject Andretti-Cadillac’s bid to join the grid, citing potential violations of American antitrust laws.
The American team, led by Michael Andretti and… pic.twitter.com/QQXi1JEexh
— This is Formula 1 (@ThisIsFormu1a1) May 22, 2024
According to a recent report from Speedcafe, these factors contradict FOM’s decision to reject Andretti’s entry. In terms of competitive standards, nearly half the grid falls below the standards set by F1, being engine customers from bigger teams like Ferrari and Mercedes. Moreover, the US is the world’s largest economy, making it a crucial market for F1.
The prospect of an American team, with General Motors potentially joining as an engine supplier in 2028, should theoretically enhance F1’s financial stability and popularity in the US. After all, Andretti is a globally recognized name in the world of motorsport.
A brief look into Andretti Global’s legacy
The team was founded as Forsythe/Green Racing by Gerald Forsythe and Barry Green in 1993 and was later rebranded as Andretti Autosport in 2009 after Michael Andretti gained full control. In 2023, the team restructured and became Andretti Global.
Andretti Global competes in numerous racing series, including the IndyCar Series, Indy NXT, Formula E, Extreme E, IMSA, and the Australian Supercars Championship. Their achievements are impressive as they have won the Indianapolis 500 six times, the CART championship once, and the IndyCar Series championship four times. They have also clinched the Indy Lights championship five times.
Despite F1’s rejection of Andretti’s bid, the FIA has consistently supported their entry into the sport. Recently, FIA president Mohammed Ben Sulayem reiterated his support for the inclusion of more teams.
FIA’s Ben Sulayem advises Andretti to “buy another F1 team” pic.twitter.com/Fp18Mchg5H
— Motorsport.com (@Motorsport) May 28, 2024
However, after the rejection and discussions around changes in the Concorde Agreement, he advised Andretti to consider buying an existing team instead of entering as the 11th team. Andretti’s rich racing legacy and potential to boost F1’s presence in the US appear to align well with Liberty Media’s stated goals, thereby raising questions about the true reasons behind FOM’s rejection.
