Last February the FIA opened the process for new teams to enter Formula 1. One of the prerequisites for entry is the payment of the $200 million so-called “anti-dilution fee”, a significant hurdle for any organisation interested in entering the sport. In a meeting with investors, Formula One Group’s CEO Stefano Domenicali has now hinted at an increase.
“The process of having another team has been launched by the FIA, and in our governance, in our Concorde, there’s a possibility to do it.”
He did again mention that any new teams, like Andretti, would need to add value to the sport:
“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.”
The teams have already made clear that with the current popularity and growth of the Formula 1 brand, $200 million will not be enough to compensate for any possible lost income. The amount going around in the paddock is rumoured to be $600 million. And Domenicali acknowledges the changed environment that warrants this threefold increase.
“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. And it’s our duty to make sure that we protect the business the best way that we can, and have a bigger picture.”
And while being backed by Cadillac (and thus automotive giant General Motors), Andretti is not the only one with interest, Domenicali added.
“Today, there’s so many that would like to come. 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.”
Domenicali was backed by Liberty Media CEO Greg Maffei, who used the bankrupt Manor team as an example of how much Formula 1’s value has increased over the time Liberty has owned the sport.
“Manor was the 11th team. And just before we bought into F1, it went into administration in the UK, and got sold for £1. The world has changed dramatically.”
