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F1 Concorde dialogue will not be “snot-gobbling combat”

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The present deal that runs from 2021 and 2025 was negotiated by former F1 CEO Chase Carey in what was thought to be a brand new spirit of cooperation in comparison with the usually confrontational debates of the sooner Bernie Ecclestone period.

Preliminary discussions have already begun over the subsequent Concorde, the primary on Stefano Domenicali’s watch as F1 CEO, despite the fact that it will not come into drive till 2026.

Maffei says negotiations are far more simple today on account of an improved relationship between F1 and the groups, with all events realising that the general income pie is getting greater.

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“Traditionally, the Concorde Settlement was a snot-gobbling combat, and by no means bought signed till after the season had already ended,” mentioned Maffei at an occasion hosted by Goldman Sachs.

“They usually had been working backwards on what they had been getting paid. We bought it achieved this time. We’re attempting to alter the dynamic, and I credit score first Chase Carey and now Stefano with altering the dynamic with the groups, the place we’re much more aligned.

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“That does not imply they wish to pay us extra, however all of them agree on the worth that we’re doing collectively, and that rising the pie has been a Positive factor for everyone. And offering stability and certainty about the place we’re going is a profit to them.

“You have seen the worth of F1 rise dramatically as we have grown EBITDA [earnings before interest, taxes, depreciation and amortisation].

“However the actuality is the groups’ valuations have elevated a lot sooner. They see the good thing about the regime that we have collectively created, they see the good thing about extending that deal.”

Greg Maffei, CEO, Liberty Media Company

Picture by: Zak Mauger / Motorsport Images

Maffei says that an early settlement for 2026 will present stability that may assist each F1 and the groups to conclude long-term sponsorship offers and so forth.

“What we’re principally speaking about is an early renewal of a deal that’s similar to the phrases that they’ve right now,” he mentioned.

“Why do we predict that is a profit? I feel we will all promote sponsors, we will promote broadcasters, we will promote all folks on the understanding of the game, and also you de-risk any of the potential sooner or later.

“I feel they [the teams] have the chance to exit and promote the identical sponsors on these concepts. So all of that’s the reason everybody form of desires to increase the present regime. And I feel we have seen good curiosity in that.”

Maffei famous that the general share of F1 income that’s shared with the groups has gone down, as a result of as per the present Concorde F1/Liberty earns extra on a sliding scale as total income rises.

“If you happen to look over the past 5 years, that share [paid to the teams] has gone down,” he mentioned. “That is largely because of the truth that there’s a quantity at which we kick into the next share.

“We mentioned we might assure ‘X’ quantity of payouts, however above a sure share, we’re betting on ourselves. And if we get to that share of pre-team EBITDA, we’ll take a bigger break up.

“What’s occurred as we have grown the game is that the quantity above that break up quantity has grown, so our share has grown.”

Concerning the subsequent Concorde, he mentioned: “I do not anticipate a serious change in how that works. There’ll in all probability be one thing alongside the identical strains, and we’ll have an incentive to develop the enterprise.

“They [the teams] have grown EBITDA dramatically. We have simply due to the success and believing within the product and believing in ourselves been in a position to develop it sooner, and I count on that it’ll be the same assemble in any form of Concorde extension.”

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