The deadline for early signing, which entitles teams to a financial bonus, was pushed back to this week after some last-minute legal wrangling. The final deadline for signing, without the bonus, is at the end of this month.
A number of F1 teams confirmed in the last few weeks they were ready to sign the terms for the new contract, including Ferrari and McLaren. However, Mercedes and Racing Point stated they thought the agreement needed more work.
Now McLaren and Ferrari have proved to be as good as their word, with Williams following suit.
McLaren confirmed in a statement: “McLaren Racing confirmed this morning it has become a signatory to the new Concorde Agreement that will govern F1 through 2025, reaffirming the team’s long-term commitment to the sport.”
First drawn up in 1981, the Concorde Agreement has been renewed six times since then, most recently in 2013, and F1 has been in discussion with all 10 teams about the eighth edition which is due to come into force next year.
The Concorde Agreement is the contract which binds together the FIA, Formula 1 and its competing teams to ensure fair competition and the even distribution of commercial revenue.
Liberty Media have been pushing for a more equitable distribution of revenue under the new terms in a bid to make the sport fairer and more sustainable as part of the talks.
McLaren Racing confirms that it has become a signatory to the new Concorde agreement that will govern the sport through 2025, in doing so reaffirming the team’s long-term commitment to Formula 1. 🤝
— McLaren (@McLarenF1) August 18, 2020
McLaren CEO Zak Brown stressed that the new agreement ticks both the financial and political boxes.
“F1 has taken another important stride on the road to a sustainable, strong future with the new agreement,” said Brown.
“This is the right deal at the right time for the sport, its owners, its teams and, most of all, the fans.
“A more equitable sport is better for everyone: greater balance in the sharing of revenues among all the teams and clearer, simpler governance that cuts through vested interests and puts the sport first.
“This agreement will only make the F1 constructors collectively stronger in the long term.
“The new agreement complements and builds on the great work of F1, the FIA and all the teams during the past few months on the future financial, technical and sporting regulations.
“Everyone has had to give ground for the bigger outcome, which will be a more competitive, exciting and thriving F1 for future generations, which in turn secures a healthy sport for both participants and fans alike.”
Ferrari CEO Louis Camilleri said in their confirmation statement: “We are very confident that the collaboration with the FIA and Liberty Media can make Formula One even more attractive and spectacular, while preserving its status as the ultimate technological challenge.
“Racing is in Ferrari’s DNA and it is no coincidence that the Scuderia is the only team that has participated in every edition of the FIA Formula 1 World Championship, becoming an integral and essential part of its success, today as in the past and, above all, in the future.”
Williams Racing is pleased to confirm it has signed the new Concorde Agreement with Formula One ahead of the 2021 season ✍️
— WILLIAMS RACING (@WilliamsRacing) August 18, 2020
Claire Williams, Deputy Team Principal of Williams, said: “The new Concorde Agreement represents a major step forward for both Formula One and Williams.
“As one of the sport’s longest-running teams, we are pleased to see the future direction of F1 confirmed for the next era of racing. Our expectation, aligned with Liberty Media, is that this next era will be characterised by closer and more exciting racing as a result of the new platform of regulations, which include more equitable revenue distribution and a first ever cost cap for our sport.
“The Agreement is a major milestone in the development of F1 and also represents a significant opportunity for Williams to continue on our journey back towards the front of the grid.”