Ferrari set to retain historic F1 bonus, but with a cap
Ferrari looks set to keep its iconic bonus payment in the upcoming Concorde Agreement, but the amount will now be capped at a maximum of 5% of the total prize fund, regardless of its size.
F1 commercial landscape
Formula 1's commercial landscape is poised for a shift as discussions surrounding the new Concorde Agreement intensify.
This legally binding document outlines the regulatory and financial framework governing the sport from 2026 onwards.
Recent draft terms have revealed a key proposal regarding Ferrari's long-standing bonus payment.
Ferrari's iconic bonus
For decades, Ferrari has received a special bonus payment in recognition of its historic significance and status as the only team to have competed in every F1 season since the championship's inception.
Under the current agreement, Ferrari's bonus amounts to at least 5% of the total prize fund if it doesn't exceed $1.1 billion.
However, an escalator formula allows this percentage to increase, capping at 10% for prize funds above $1.6 billion – the approximate current level.
The proposed cap
According to sources close to the negotiations, the draft terms propose capping Ferrari's bonus at a fixed 5% of the total prize fund, regardless of its size.
This move aims to address concerns from rival teams about the escalating nature of Ferrari's payment, which has grown substantially as F1's revenues have soared.
Differing perspectives
While some competitors argue that Ferrari's special treatment is antiquated, others acknowledge the Italian marque's unique heritage and brand recognition value for the sport.
Williams team principal James Vowles highlighted Ferrari's ability to capture the public's imagination, justifying its status.
Confidential discussions
As discussions progress, teams remain tight-lipped about the specifics of the draft Concorde Agreement.
Ferrari boss Fred Vasseur refused to comment on the matter, underlining the confidential nature of the negotiations.
Long-term stability
F1 CEO Stefano Domenicali emphasized the importance of minimizing disruptions and maintaining stability, suggesting the new agreement may not deviate significantly from its predecessor.
However, the proposed cap on Ferrari's bonus payment represents a notable change in the sport's financial dynamics.
As the Concorde Agreement talks intensify, all eyes are on the eventual outcome, which will shape the future of Formula 1's commercial landscape and the balance of power among its teams.
Comments ()