After months of long discussions and contemplation to sign the Concorde Agreement and delays due to the coronavirus pandemic, all the of the current F1 teams have come to an agreement, which will keep them in the sport for another five years.
Concorde Agreement! What is it actually?
It is a set of contracts which is signed between the Formula, its governing body FIA and the participating teams those who wish to compete in the World Championship.
The contract or the agreement documents how F1’s television revenue and prize money will be distributed.
The previous agreement which was signed by the teams is set to be expired at the end of 2020.
Every team that wishes to compete in f1 World Championship must sign this agreement.
Why is it called the Concorde Agreement?
Back in 1981, when the first draft of the agreement was introduced, it was discussed at today’s headquarters of FIA in Paris, France’s Place de la Concorde.
What Duration of the Concorde Agreement?
Every agreement runs for a period of five years, from 2021 to 2025. This is the first agreement signed between the F1’s new owners Liberty Media after acquiring the sport from Bernie Ecclestone.
This means those who signed binds their teams to the sport, at least for the duration of the agreement.
Thus making an end to the speculation for two teams Mercedes and Haas who were rumoured to be exiting the sport at the end of the current cycle.
What is in the current agreement?
The primary aim of the deal was to make a strong foundation and long-term future for the sport. Well, the exact details of the agreement will never be known to the outside world as they are top secret business deals with owners and the participating teams.
New technical regulations of 2021 (which will be implemented from 2022) along with a revolutionary budget cap on spending starting from 2021 are a few to start with.
An agreement to bring down the huge financial disparities between the teams and a level playing field for all teams no matter how big or small they are and also to close down the performance gap between teams.
What Now?
With every single team signed up the Concorde Agreement, teams can now focus on various other aspects of their teams and can plan to where should they put their focus on for winning the championship.
The new regulation which has been pushed back a year due to volatile financial situation around the world, which gives teams ample time to get to the drawing boards to emerge victorious on track.
Starting 2022 we will see the emergence of a new era of Formula One cars which should surely improve the racing extravaganza.
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