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Wednesday, June 19, 2024

Ferrari set to maintain bonus cost in new F1 Concorde Settlement – however now capped

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Groups are in discussions with F1 homeowners Liberty Media over the phrases of the brand new Concorde Settlement that is because of come into pressure from 2026.

The doc defines how F1 is run – with one settlement referring to the regulatory framework of grand prix racing, and one other outlining the industrial phrases.

Draft define phrases had been not too long ago despatched to groups as the subsequent step of this progress, forward of what are prone to be intense discussions to succeed in an settlement that every one events are glad with.

And it’s understood that one level of these phrases is for Ferrari to retain its bonus cost however at a lowered stage.

Prize construction state of affairs

Carlos Sainz, Ferrari SF-24 Oscar Piastri, McLaren MCL38

Photograph by: Andy Hone / Motorsport Images

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The Concorde Settlement lays down the precise prize construction, and defines how a lot groups obtain each as a share of the pot but in addition for every ending place within the constructors’ championship.

For the present Concorde Settlement that runs from 2021 till 2025, groups acquired a 50% share of F1’s income as much as a sure level, with them then getting a smaller share if extra earnings is generated.

It’s understood that at present income ranges, in extra of $3 billion final yr, F1 groups obtain a forty five% share.

One of many extra intriguing points throughout the Concorde Settlement has been an additional historic cost that Ferrari receives due to its long-term significance to the sequence. It’s the solely group to have competed in each season for the reason that world championship started.

Whereas further funds to championship-winning groups are primarily based on success, Ferrari’s bonus is irrelevant to its aggressive fortunes on monitor.

Below the phrases of the present Concorde Settlement, Ferrari receives a cost that’s no less than 5% of the complete prize fund.

It’s understood that it receives this baseline determine if the whole prize pot distributed to groups doesn’t exceed $1.1 billion.

Nevertheless, there may be believed to be an escalator components in place which means if the prize pot get greater, then Ferrari will get a better share of every incremental step up.

This finally maxes out at 10% for something above and past across the $1.6 billion mark – precisely the place the earnings figures are believed to be now.

Sources have revealed that the proposal within the subsequent Concorde Settlement is for Ferrari’s bonus cost to be capped at 5% it doesn’t matter what the prize pool stage is.

This implies Ferrari will nonetheless get a sizeable chunk of F1’s incomes, however it’s going to lose the escalator bonus it has loved most not too long ago.

Ongoing debate

Frederic Vasseur, Team Principal and General Manager, Scuderia Ferrari, talks to the press

Frederic Vasseur, Workforce Principal and Basic Supervisor, Scuderia Ferrari, talks to the press

Photograph by: Sam Bloxham / Motorsport Images

Whereas a few of Ferrari’s rivals imagine that the necessity for it to be alone in receiving a particular bonus has had its time, others settle for that there’s good reasoning behind it getting particular remedy.

Final yr, Williams group boss James Vowles stated: “I feel Ferrari brings one thing particular to the game. Now we have to be trustworthy about that.

“If you happen to ask a median one that they know in System 1, you will note that Ferrari continues to be a reputation that stands out.

“That is the reality behind it. They convey a sure stage of heritage and recognition to the game. So I feel there is a cause this stuff exist.”

Whereas groups have acquired the Concorde Settlement draft phrases from F1, its contents are confidential and they’re reluctant to elaborate on what they consider issues proper now.

Requested concerning the Concorde Settlement draft state of affairs in Imola, Ferrari group boss Fred Vasseur stated: “You realize you may ask the query, however the query is for you, as a result of you understand completely that I’ll by no means reply. Get pleasure from asking the query, however you understand that I’ll by no means reply!”

Talking in an earnings name not too long ago, F1 CEO Stefano Domenicali stated that the precedence for him was to ship a Concorde Settlement that was good for the long run and didn’t deviate a lot from the earlier one.

“We’re within the course of of dialogue with the groups,” he stated. “Crucial level is to maintain the state of affairs as secure as potential. These are the factors of dialogue.

“And as you may think about, we can not go into element of it, however as quickly as we are able to, we’ll share what we are able to do.

“The state of affairs is perfect to maintain discussing with the groups, with all of the related events, one of the simplest ways to finalise all the things for a stronger future as much as a long term.”

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