FIA secures funding boost in new F1 Concorde Agreement

The FIA has secured a significant financial increase from Formula 1's new Concorde Agreement, earmarked to improve its regulatory capabilities in policing the championship. The deal, signed by the FIA, F1 management (FOM), and the teams, provides a stable governance framework through 2030 and addresses long-standing concerns about funding for the sport's governing body.

Why it matters:

This agreement resolves a critical tension point as F1's commercial revenues have soared. FIA President Mohammed Ben Sulayem has long argued that the governing body's costs for regulation—including stewarding and enforcing the complex financial rules—have escalated without proportional funding. The new financial terms are a direct investment in the integrity and consistency of the sport's officiating, which has faced increased scrutiny in recent seasons.

The details:

• The new tripartite Concorde Agreement covers the governance of F1 from 2026 through 2030, finalizing the framework after teams and Liberty Media had previously agreed on commercial terms.
• A core element is an increased financial contribution from F1 to the FIA, specifically to enhance race regulation, race direction, stewarding, and technical expertise.
• This funding is expected to support key initiatives, such as moving toward a more permanent and professionalized stewarding panel, a change long discussed within the sport.
• The introduction of the budget cap in 2021 dramatically increased the FIA's regulatory burden, requiring sophisticated auditing and oversight, which this new funding aims to support.

The big picture:

The agreement arrives at a pivotal moment, ensuring stability before the major technical and power unit regulation changes set for 2026. It represents a formal acknowledgment that a commercially thriving F1 requires a proportionally well-resourced regulator to maintain fair competition and sporting integrity. Both Ben Sulayem and F1 CEO Stefano Domenicali framed the deal as essential for the sport's continued global growth and technological innovation.

What's next:

With the financial and governance framework now locked in through 2030, the FIA can proceed with planned investments in its regulatory infrastructure. The focus will shift to how these resources translate into tangible improvements on race weekends, particularly in the consistency and transparency of officiating, as F1 prepares for its next era of competition.