After a long struggle for entry into F1, Andretti Global has finally been given the green light by the FIA. However, in doing so, the Formula 1 Group rejected a promising aspirant named LKYSUNZ, who was ready to pay a staggering $600,000,000 for anti-dilution. Despite this, they saw their bid get rejected, as per a recent report by Motorsport Total.
Anti-dilution is an entry amount defined by the F1 after discussion with existing teams. This amount is to be given to the teams as they will see a reduced share of profit after an increase in the number of teams in the sport. Therefore, this fee helps the teams bring equal ground in terms of profit.
“We’re working on it” 🧐
Martin Brundle speaks to Michael Andretti about his new team with Cadillac and plans to join the F1 grid… pic.twitter.com/7eivkkx6mv
— Sky Sports F1 (@SkySportsF1) May 7, 2023
LKYSUNZ was ready to offer $600 million, which is thrice the money demanded by the F1 group for a new team’s entry. In spite of such a huge sum being offered, the FIA decided to deny them a chance.
How did Andretti get the green signal over LKYSUNZ?
There were long debates about whether Formula 1 needed another team in the sport. However, after multiple tries, only four teams, namely Andretti, LKYSUNZ, Hitech, and Rodin Carlin got the chance to try and be the 11th team in the sport. In the end, the FIA gave only Andretti the nod of approval.
According to a report published by Motorsport Total, Formula 1 rejected the bid of three other teams as the deadline had passed. Amid this, the most shocking update was to see LKYSUNZ’s bid getting canceled even after though they were ready to go three times beyond the asking price.
The shocking rejection has raised multiple eyebrows as it could have added a huge amount of cash influx into the sport. However, the rejection has come at an expense of a huge number of job losses.
How humongous the bid loss was for the rejected teams?
While Andretti Global, led by Michael Andretti has something to cheer about, the other teams have huge losses to count for. While the teams built up factories believing that they would be able to make it through, the personnel working there are also at a danger of losing their jobs.
As the FIA and FOM have allowed only one team to go ahead, a lot of people from LKYSUNZ, Hitech, and Rodin Carlin could lost their jobs. As a result, these workers have started looking elsewhere for jobs.
However, the FIA still hasn’t given a full green light to Andretti. It will be interesting to see how much Andretti needs to pay for the much coveted entry and if they take any personnel on board from the other three aspirant teams.
