Understanding the New Governance Agreement in Formula 1: What You Need to Know
The recently announced governance agreement for Formula 1 represents a significant step in the sport’s evolution, complementing the commercial aspects laid out in the Concorde Agreement. This governance deal, which will take effect from 2026 through 2030, was revealed during the FIA General Assemblies held in Tashkent, Uzbekistan, alongside the FIA Awards and the re-election of Mohammed Ben Sulayem as president.
The Importance of Governance in Formula 1
The governance agreement is critical as it outlines the framework for how Formula 1 will be managed moving forward. Unlike the commercial agreement, which focuses primarily on financial aspects, the governance deal delves into the operational and regulatory structures that are vital for the championship’s integrity and effectiveness. It establishes essential elements such as the voting dynamics within the F1 Commission, the entry fees that teams are required to pay, and the overall responsibilities of the FIA.
Changes in Voting Dynamics
One of the most significant changes introduced in this governance agreement is the alteration of the voting process during F1 Commission meetings. With the new structure, the number of team votes necessary to achieve a simple majority has been reduced. Previously, a total of six votes out of eleven teams was required, along with support from the FIA and FOM. Under the new regulations, only four votes will be necessary for a majority, while a supermajority will now require six votes instead of eight.
This adjustment aims to streamline decision-making and ensure that necessary regulatory changes can be implemented more swiftly. The hope is that these changes will provide a more stable foundation for the sport, allowing for more efficient governance and adaptation to new challenges.
Financial Contributions and Entry Fees
As part of the governance agreement, there has been a restructuring of the entry fees that teams pay to the FIA. This change is significant because it addresses the financial imbalances that have historically existed between teams. Previously, the entry fee was calculated based on a combination of a flat fee and the points accrued in the previous season. This meant that successful teams, like Red Bull, faced disproportionately high fees, while less successful teams contributed relatively little.
Under the new model, entry fees will be determined based on a sliding scale that reflects a team’s constructor position. This approach will ensure a more equitable distribution of costs among teams. It is anticipated that this new structure will result in an increase of approximately $15 million in the total entry fees contributed to the FIA each year. Midfield teams, in particular, are expected to see a significant increase in their contributions, which will help fund FIA operations and improve the governance of the sport.
FIA’s Commitment to Improvement
In response to calls from teams for better professionalism in stewarding and other operational services, the FIA has put forth a plan to enhance its race operations. This initiative is backed by FOM, which recognizes the need for improved services and infrastructure within the sport. President Mohammed Ben Sulayem has emphasized that the additional funds generated from the restructuring will be utilized to strengthen the FIA’s capabilities and to support race directors, officials, and volunteers who are essential to the successful execution of races.
Ben Sulayem expressed a commitment to modernizing the FIA’s operations, stating, "This agreement allows us to continue modernizing our regulatory, technological, and operational capabilities." This commitment is vital for ensuring that Formula 1 remains at the forefront of technological innovation and sets new standards within global sports.
Increased Visibility and Branding
Another noteworthy aspect of the new governance agreement is the provision for improved visibility of the FIA within the paddock. Starting in 2026, each Formula 1 car will be required to display the FIA logo, ensuring that the governing body is prominently represented. According to the new regulations, the logo must be featured on the nose of the car, either in blue or white, and must be visible from the side.
This inclusion not only enhances the FIA’s branding but also signifies the importance of the governing body in the sport’s ecosystem. By making the FIA logo a mandatory feature on each car, the agreement reinforces the relationship between the sport’s governance and its commercial aspects.
Future of Sprint Races
The new governance agreement may also open the door to an increase in the number of sprint races in the Formula 1 calendar. Until now, FIA President Ben Sulayem had expressed caution regarding the expansion of sprint races, citing concerns over the impact on FIA personnel and resources. However, with the anticipated growth in revenue from the new governance structure, there is a possibility of expanding the number of sprint events, with the goal of reaching double digits by the 2027 season.
Sprint races have proven to be popular among fans and promoters alike, contributing positively to the overall commercial landscape of Formula 1. The potential for increased sprint races aligns with FOM’s vision of enhancing the sport’s appeal and engaging a broader audience.
Conclusion
The newly established governance agreement in Formula 1 is a comprehensive framework designed to modernize the sport’s operational and regulatory structures. By refining the voting process, restructuring entry fees, and committing to enhanced professionalism in stewarding and race operations, the FIA and FOM are working together to ensure a more equitable and efficient governance model. As Formula 1 prepares for this new era, the changes introduced in this agreement are poised to support the sport’s growth and adaptability in the years to come.
