F1: What’s New in the Concorde Governance Agreement?

In recent days, a new Concorde Governance Agreement has been reached. This contract binds the FIA, Formula 1, and the teams. This defines how the sport will be managed over the next five years. The document outlines how F1 will be reorganized from both an economic and structural standpoint.

The FIA and Formula One Management jointly announced the agreement during this week’s FIA General Assemblies in Tashkent, Uzbekistan. An event that also included the FIA Awards and Mohammed Ben Sulayem’s re-election as President of the Federation.

The new Concorde Governance Agreement introduces several key updates. New rules on championship entry fees, a revised structure of the commissions responsible for voting on regulatory changes, and various internal organizational measures. This will influence how Formula 1 is run in the coming years.

Just yesterday, we did a quick calculation of how much each team will pay for entry to the 2026 championship. Here are all the fees

One of the most significant changes concerns the minimum number of votes required to approve regulatory modifications within the FIA Commission. Previously, 6 out of 11 team votes were needed. Now the threshold has been reduced to 4. To obtain a super-majority, 6 votes will be required instead of the previous 8. Naturally, the teams’ votes must still be combined with those of the FIA and FOM to validate any rule change.

Higher Entry Fees Invested in Organization and F1 Safety

Another major point is the increase in the fees. Teams and FOM will pay more to the FIA to gain entry to the following season. These additional funds already have a clear purpose: improving the marshall service with the goal of making it increasingly professional. The current system, largely based on volunteers working throughout the weekend with only expense reimbursement, could soon evolve. A more structured training path will help develop new professional personnel, improving efficiency and safety during race weekends.

Until now, entry fees were calculated by combining a fixed amount of roughly $600,000 with the points scored in the previous season. Under the new structure and the new Concorde Governance agreement, the collective amount paid by teams to the FIA is expected to increase by around $15 million per year. Mid-field teams seeing the largest impact. This system aligns with the financial rewards structure, which allocates about $9 million for each mid-field position. The ongoing commercial growth of Formula 1 is expected to offset these increased costs for the teams.

Double-Digit Sprint Races by 2027

Starting next year (with the new technical regulations) a new mandatory detail will also appear on all cars. Article A2.3.4 of the General Regulations states that every F1 car must display the FIA logo. In blue or white, at least 75 mm tall, placed either on top of the nose or on both sides, and visible from the side.

This is part of the broader renewal path set by the FIA ahead of the major regulatory overhaul scheduled for 2026. Furthermore, from 2027 the number of Sprint Races is expected to increase significantly, potentially reaching double digits. A more packed calendar, strongly supported by sponsors investing increasingly large sums, will help cover organizational costs and other areas that remain unclear in the current race weekend structure.