Formula One teams sign new 'concorde' agreement, securing sport’s future until 2030; here's what it means

Formula One has locked in its long-term economic stability, with all teams officially signing the 2026 Concorde Agreement, the sport announced at the season-opening Australian Grand Prix.

The confidential deal, which outlines the distribution of revenues and financial structure of the sport, replaces the current agreement set to expire at the end of 2025. The new Concorde Agreement will run until 2030, ensuring financial certainty and governance continuity for the Liberty Media-owned championship.

“Formula One has never been in a stronger position, and all stakeholders have seen positive benefits and significant growth,” the statement read. “The 2026 Concorde Governance Agreement will be finalised in due course.”

What is the Concorde Agreement?

The Concorde Agreement is a binding contract between Formula One, the FIA (governing body), and the competing teams, dictating how the sport’s commercial revenues are shared. Named after Place de la Concorde in Paris, where the original 1981 agreement was signed, it ensures financial fairness among teams while maintaining the commercial success of Formula One.

Key aspects of the Concorde Agreement include:

    •    Revenue distribution – Determines how prize money and commercial income are split between teams.
    •    Governance structure – Defines how rules and regulations are decided in collaboration with the FIA.
    •    Commitment to participation – Prevents teams from breaking away to form a rival series.

Among the signatories is General Motors-backed Cadillac, which is set to enter F1 in 2026 as the sport’s 11th team. Their arrival signals Formula One’s increasing expansion into the American market, following the surge in popularity driven by Netflix’s ‘Drive to Survive’ and new races in Miami and Las Vegas.

The new Concorde Agreement aligns with Formula One CEO Stefano Domenicali’s contract extension, which now runs until the end of 2029. Under his leadership, F1 has seen record-breaking revenues, increased sustainability efforts, and major growth in new markets.

With the financial framework secured, teams can now focus on the technical and sporting regulations for the 2026 season, which will bring new engine rules and sustainable fuel initiatives.

The Concorde Agreement’s completion ensures the sport’s long-term commercial success, paving the way for further expansion and innovation in the coming years.