Bosse: Don’t destroy the series
Everything is bigger in Texas, including the trouble in Formula 1
October 19, 2023, 7:10 p.m
In the dispute over the entry of the US Andretti project, the fronts between the world association and Formula 1 bosses are hardening before the race in Texas. Above all, it’s about a lot of money. The teams feel pressured by FIA President ben Sulayem. The racing series reacts extremely coolly, even in hot Austin.
The boast “Everything is bigger in Texas” leads straight to the heart of a highly explosive dispute at the Formula 1 guest appearance in Austin. Oversized cowboy hats and the enormously increased number of fans on the Circuit of the Americas fit the racing series’ image, but the expansion to include an eleventh team, pushed by the world association, is met with bitter resistance. The fact that the remaining applicant Andretti is a US project is likely to make the matter the number one topic of conversation in the paddock at the Grand Prix this weekend.
“Let’s not play games: it’s about money,” says Mohammed ben Sulayem, president of the International Automobile Federation FIA. The 61-year-old has put Formula 1 bosses in serious trouble with his desire for at least one more team. The ex-racing driver from Dubai brushes aside any concerns that a driving license for Andretti would significantly reduce the value and income of the established racing teams. He sees the chances for the 61-year-old Andretti in the further proceedings as “very positive”. The expiry of a preliminary contract with Renault as Andretti’s engine partner is also not a problem.
The FIA took Formula 1 by surprise at the beginning of the year with the brisk announcement of the starting positions that were open according to the rules. Recently, the joint project between the once hapless Formula 1 driver Michael Andretti and the car giant General Motors was awarded the contract. Now it is the turn of the management of Formula 1 (FOM) with the rights holder Liberty Media. And the FOM is under a lot of pressure from the team bosses, who officially have no say.
“Don’t ruin the sport”
“What is the additional value for Formula 1? We already have an American team with Haas, we have an American driver,” says Ferrari racing director Frédéric Vasseur. The very rich Aston Martin owner Lawrence Stroll emphasizes: “The sport has never been better positioned. And if something isn’t broken, you don’t have to fix it.”
Christian Horner, team boss of world champion Red Bull, and his Mercedes colleague Toto Wolff also point to the recent sharp increase in the value of the existing racing teams. In the wake of the US Formula 1 boom, Ferrari alone is valued at 3.5 billion euros, Haas still at 700 million. An eleventh team would possibly dilute the values.
The bosses of the smaller teams paint the picture even more dramatically. Williams team boss James Vowles points out that his traditional racing team, which was temporarily left behind, continues to lose millions in its race to catch up and that the time has not yet come for other competitors. And Günther Steiner from Haas, for whom Andretti could be dangerous when vying for US sponsors, recalls the Corona crisis: “In 2020 we fought for survival in Formula 1. If you allow more teams, the risk is greater We fail when things go wrong.”
Formula 1 boss reacts coolly
It’s been like this for months now. Formula 1 managing director Stefano Domenicali has so far reacted coolly to the FIA and Andretti’s plans. The Italian must now check whether the eleventh team also gets the green light from a commercial perspective. The longer the former Ferrari team boss takes his time, the more difficult it will be for Andretti to get in as early as 2025, as he had hoped.
From 2026, however, a new basic contract will take effect. The entry fee for new teams could then rise significantly from the current 200 million US dollars (around 190 million euros). This money is distributed among the other teams as compensation because their share of the marketing billions becomes mathematically smaller with another player. 600 million dollars, i.e. 570 million euros, could be due for new entrants from 2026. Andretti would certainly like to avoid this form of inflation.
If the Formula 1 bosses take a different stance, some people will be worried about the EU’s competition watchdogs. Andretti or even the FIA could use the courts to use antitrust law to force the approval of the eleventh team. At the beginning of the millennium, the EU had already banned the refusal of potential applicants to take part without reasonable reasons.