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Will New Concorde Agreement Stabilize F1?

by F1Fan on August 2, 2009

Yesterday, the FIA released a Statement confrming that following the approval by the World Motorsports council, Max Mosely signed the new Concorde agreement which will govern the commercial terms of Formula 1 through December 31st 2012.

“Following approval by the World Motor Sport Council, late last night FIA President Max Mosley signed the 2009 Concorde Agreement, heralding a renewed period of stability for the FIA Formula One World Championship.

The Concorde Agreement – a contract between the FIA, F1’s Commercial Rights-Holder and the participating Teams – sets out the basis on which the Teams participate in the Championship and share in its commercial success.

The WMSC has also approved a slightly revised set of stable Sporting and Technical Regulations (to apply from the 2010 Championship onwards), which have been agreed by the FIA and the Teams and which will be published shortly on the FIA’s website.

The new Concorde Agreement, which runs until 31 December 2012, provides for a continuation of the procedures in the 1998 Concorde Agreement, with decisions taken by working groups and commissions, upon which all teams have voting rights, before going to the WMSC for ratification.

In addition, as agreed in Paris on 24 June 2009, the Teams have entered into a resource restriction agreement, which aims to return expenditure to the levels that prevailed in the early 1990s.

With the 2009 Concorde Agreement and the resource restriction agreement in place, the FIA looks forward to a period of stability and prosperity in the FIA Formula One World Championship.”

It has been widely reported that 12 Teams have signed the agremeent including the three new teams for the 2010 season, Campos, Manor and Team USF1.

The only team that hasn’t signed yet is BMW, who apparently have untill the middle of this week to decide if they will sign. This Decision will depend greatly on whether or not BMW intends to shut down the team or find someone to take it over.

Peter Sauber

Peter Sauber

In a recent press conference Peter Sauber, who still retains a 20% ownership stake in the BMW Sauber Team confirmed that he will do everything possible to keep the team operational as a unit and secure the jobs of the team’s employees. Apparently Investment offers have already been forth coming which have been passed on to BMW, but ultimately it will be BMW’s decision.

Peter Sauber believes that it takes at least 10 years to build a team capable of being competitive in Formula 1 and it would be a huge loss to the sport for the team to be disbanded. If Sauber is correct then it doesn’t bode well for the new teams entering Formula One next season.

With the Concorde agreement signed and revised technical regulations and cost reductions agreed it looks like the political wrangling in F1 is over for the next few years, I just hope that this economic downturn starts to ease and that the other manufacturers currently participating in F1 will not be faced with making a similar decision to BMW’s.

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