Formula 1 CEO Stephano Domenicali has hinted that the cost of entry for new teams is likely to rise beyond the current level.
Under the present agreement, new teams are expected to pay a so-called “anti-dilution fee” of $200m that is shared between the ten existing teams.
The fee is designed to counter the potential losses that each team will incur when an extra team is taking a portion of the F1 prize pot.
F1 has only had 10 teams competing in the championship since Manor were forced to withdraw at the end of the end of 2016 due to financial difficulties.
However, F1 is in a much better position, financially and commercially, than when the $200m figure was agreed thanks to Drive to Survive, the cost cap and a strong recovery from the COVID-19 pandemic.
In February the FIA launched the entry process to allow teams to express an interest in joining the F1 grid. The process is expected to deliver an outcome in June.
“The process of having another team has been launched by the FIA,” Domenicali said. “In our governance, in our Concorde, there’s a possibility to do it.
“But the evaluation has to be done together to see from the technical perspective, from the sporting perspective, for the financial stability, and to make the bigger picture, if a new team will give value to the league, to the sport. And there will be a different position.
Domenicalli agreed with many current F1 teams that times have changed since the $200m fee was agreed upon with some rivals reportedly suggesting that the fee should be tripled for the eleventh entrant.
If an increase in the entry fee is agreed, then it could force Andretti to revaluate their plans to enter F1 with General Motors brand, Cadillac.
“And I go back to one point, the so-called anti-dilution payment was done at $200 million, just a couple of years ago. Because at that time no one would have expected that the value of this business would rise up so much.
“Today the situation is totally different, for sure. It’s our duty to make sure that we protect the business the best way that we can, and have a bigger picture.”
This year, F1 was valued by Forbes as the “most valuable sports empire” in the world at $17.1 billion, with F1 owners Liberty Media valued at $21 billion.
While the Andretti Cadillac bid has been the most high profile, Domenicali is insistent that there are a number of potential teams that have expressed an interest in joining the grid.
“Today, there’s so many that would like to come,” he said. “There are teams that are more vocal than others, some of them are much more silent, but they are really expressing their interest.
“As always in life someone has to make that evaluation and we’re part of this process, and we’re going to do the right thing at the appropriate time through this year.”
Keyword: Domenicali hints that F1’s $200M entry cost for new teams will rise