F1 finalizes key governance deal, paving way for more sprint races and FIA investment

Formula 1 has finalized the governance portion of its new Concorde Agreement, a critical five-year deal that defines how the sport is run from 2026 to 2030. The agreement, signed by the FIA, Formula One Management (FOM), and all 11 teams, includes a revised voting structure and a new financial model for team entry fees, which will fund a professionalization of the FIA's race operations.

Why it matters:

This governance framework is the rulebook for F1's power dynamics. It determines how easily new regulations can be passed, how the sport's governing body is funded, and sets the stage for significant future changes, including a potential expansion of the sprint race format. A stable, well-defined agreement is essential for the sport's long-term planning and growth.

The details:

• Voting Power Shift: The threshold for passing measures in F1 Commission meetings has been lowered. From 2026, a normal majority will require just four out of 11 teams (plus FOM and the FIA), down from six. A super-majority now requires six teams instead of eight. This effectively gives FOM and the FIA greater collective weight to push through regulatory changes.
• Restructured Entry Fees: The system for calculating the entry fees teams pay to the FIA has been overhauled. Previously based on points scored, it disproportionately penalized top teams. The new model uses a sliding scale based on the previous year's Constructors' Championship position, aligning it with the prize money distribution.
  • This change is expected to increase the total annual fee pool by roughly $15 million, with midfield teams seeing the largest increases.
• Funding FIA Operations: The additional funds are earmarked for the FIA to invest in and professionalize its race operations, including stewarding, marshalling, and logistical support—areas teams have long called for improvement.
• Increased FIA Visibility: The 2026 technical regulations will mandate that all cars feature the FIA logo on the nose, with a minimum size of 75mm, enhancing the governing body's branding within the sport.

What's next:

The financial and structural clarity provided by this agreement removes key obstacles to expanding the sprint race calendar. FOM is reportedly keen to increase the number of sprint events to around 10 per season by 2027, a move previously resisted by FIA President Mohammed Ben Sulayem due to cost and workload concerns. The new revenue model could help cover those costs, making an expansion more likely. The deal secures the operational and regulatory foundation for F1's next era, aiming for greater stability and controlled evolution.