All 10 Formula 1 teams have inked their allegiance to the sport until at least 2025 with every team signing the new Concorde Agreement that comes into effect next year.
The tripartite deal is an umbrella agreement for all ten teams, the sport’s commercial rights holder Liberty Media and the FIA together.
The existing deal was signed in 2013 by nine of the ten teams and expires at the end of the current season.
The new deal is aimed at making the sport more equitable by bridging the financial abyss between the sport’s top three teams and the smaller midfield teams. By providing a more balanced playing field it is hoped the spectacle will improve and racing becomes more competitive.
Ferrari were a key player in the deal considering their historic prestige and the fact the outfit has said in the past they will withdraw from Formula 1 if they don’t receive acceptable terms.
It is expected the Scuderia has maintained its right to veto any technical or sporting regulations and holds onto their monetary bonus at the end of each year.
“This year has been unprecedented for the world and we are proud that Formula 1 has come together in recent months to return to racing in a safe way,” said F1 chairman Chase Carey.
“We said earlier in the year that due to the fluid nature of the pandemic, the Concorde Agreement would take additional time to agree and we are pleased that by August we have been able achieve agreement from all 10 teams on the plans for the long term future of our sport.
“All our fans want to see closer racing, wheel to wheel action and every team having a chance to get on the podium.”
FIA president Jean Todt added his praise for the agreement and how each stakeholder was able to mitigate the Covid-19 boundaries to come to a joint decision.
“The conclusion of the new Concorde Agreement between the FIA, Formula 1 and all ten of the current teams assures a stable future for the FIA Formula One World Championship,” said Todt.
“Over its 70-year history, Formula 1 has developed at a remarkable rate, pushing the boundaries of safety, technology and competition to the absolute limits, and today confirms that an exciting new chapter in that history is about to begin.
“During the unprecedented global challenges currently facing everyone around the world, I am proud of the way that all of Formula 1’s stakeholders have worked together over the past months for the best interests of the sport and the fans to agree the pathway for more sustainable, fair and exciting competition at the pinnacle of motor sport.”
Formula 1 is also set to announce its final additions to the 2020 calendar over the coming days which could feature a return to the Turkish GP circuit in Istanbul.
The next round in the world championship remains the Belgian Grand Prix on August 28-30.