Formula 1 has announced all 10 teams have agreed to sign the new Concorde Agreement, committing their future until 2025.
This agreement is essentially the glue that keeps the sport together as it binds all the teams, FIA and commercial rights holder Liberty Media by laying out the vision for F1 over a certain period.
The latest Concorde is the first to have been negotiated in the Liberty era and the first without Bernie Ecclestone, who organised the original agreement back in 1981.
The main focus of the new Concorde has been on trying to level the financial playing field in F1 with a more equal distribution of revenue and the sport's first budget cap, which will come into effect next year.
And after McLaren, Ferrari and Williams were the first to announce they had signed up on Tuesday, the original deadline for all teams to do so, F1 confirmed the expectation that every team is on board for another five years.
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“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," CEO Chase Carey commented.
"We said earlier in the year that due to the fluid nature of the Covid-19 pandemic, the Concorde Agreement would take additional time to agree and we are pleased that by August we have been able to 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.
"The new Concorde Agreement, in conjunction with the regulations for 2022, will put in place the foundations to make this a reality and create an environment that is both financially fairer and closes the gaps between teams on the race track.”
FIA president Jean Todt also welcomed the development.
“The conclusion of the new Concorde Agreement between the FIA, Formula 1 and all 10 of the current teams assures a stable future for the FIA Formula One World Championship," he stated.
"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 motorsport.”
