11 January 2023 , 16:23
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Formula 1 teams are likely to demand at least triple the current dilution fee on offer to even consider giving support to a new entrant.
The FIA has opened the door to the idea of a new team, possibly even two, joining the existing 10 on the grid. Michael Andretti is one of those keen to fill a slot, having recently announced a major team-up with American carmaker General Motors.
If approved for entry, the team will bear both Andretti and Cadillac branding. But while bringing an automotive giant to the sport appears, on the surface, to appease those who demand any new entrant give more to F1 than they take, it seems the current major players are still not on board.
As it stands, only McLaren and Alpine are open to the idea of Andretti joining the grid. The former because of chief executive Zak Brown, who is a good friend and business partner of his fellow American, while the latter has a deal in place to supply power units to the new team if approved.
The other eight teams are still against the idea and the sticking point appears to be financial compensation. The current dilution fee, as agreed under the current Concorde Agreement, stands at $200m (£165m). So, in theory, each team would receive $20m (£16.5m) as compensation for a new team joining the grid.
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Team bosses feel that figure is nowhere near high enough and that it undervalues the sport, which has experienced considerable growth since the current agreement was signed. They want the dilution fee increased significantly before even considering green-lighting the Andretti entry.
FIA president Mohammed ben Sulayem appears keen on the idea of a new F1 team (Getty Images)One senior team figure told Mirror Sport that a figure triple the current $200m amount would likely be needed before some start warming up to the idea. They pointed at the $650m (£535m) expansion fee paid by the Seattle Kraken to join the National Hockey League in 2021 as an example of the sort of figure they think any new F1 entrant should be paying.
The $200m figure was considered decent value just a few seasons ago because of the price the Williams team was sold at, but things have now changed. It is unlikely the current Concorde Agreement will be changed on a whim, so 2025 – the expiry date of that legislation – seems like the next point in time at which an increase would be possible.
Any new team given approval by the FIA and F1 to enter the sport would most likely not be able to begin competing until at least the 2026 season anyway, so those teams currently against a new entrant will be able to argue that the current Concorde Agreement should not apply to anyone who does not compete within its timeframe.
Michael Andretti accused other F1 team bosses of being "greedy" (Paul Sancya/AP/REX/Shutterstock)Speaking to Forbes this week, Andretti showed his anger at the resistance he is facing and lashed out at "greedy" team bosses who he says are simply being selfish. "It's all about money. First, they think they are going to get diluted one tenth of their prize money, but they also get very greedy thinking we will take all the American sponsors as well," he asserted.
"It's all about greed and looking at themselves and not looking at what is best for the overall growth of the series. I'm not surprised – In Formula 1, the owners look out for themselves, not what is best for the series." He also baulked at another complaint from some teams who claim their Cadillac deal is simply a 'badging exercise'.
Andretti added: "In 2026 there are various things we can do with another engine manufacturer. It would not be a badged engine, because there would be intellectual property from Cadillac in that engine, so that is not a badged engine.
"Our end goal is to be competing for the world championship five or six years down the road. We want to be competing and race against the best in the world. We aren't underestimating that. It will be a long, building process, but we have a good plan to eventually get us there."