Formula One teams push to increase Michael Andretti’s F1 entry fee to a whopping $600 Million
Micheal Andretti's Formula One dream might be shattered unless his passion for the sport is immense.
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Micheal Andretti (via Forbes)
Micheal Andretti’s Formula One dream might be moving further away. The ten teams on the grid want to increase the anti-dilution fee from $200m to $600m, which is thrice the amount paid by current outfits. This fee is to compensate the current teams for the dilution of the prize fund. However, sources have revealed that this figure could go way higher.
Micheal Andretti has been trying to enter Formula One for quite some time. But his efforts were in vain. The Formula One teams are satisfied with the current grid and do not want an 11th team. The team bosses, Toto Wolff, and Christian Horner, among others, have spoken out against Andretti Cadillac’s entry. According to them, it all comes down to the prize money.
This $600m sum will put Andretti on a back foot and make him reconsider his plans with Formula One. Although Andretti has the option of buying an existing team, Sauber and other teams had previously turned down the offer. All is not lost, as Red Bull is rethinking AlphaTauri’s future. They have given the team two options, either putting it up for sale or moving their factory to the UK.
Things have only gotten worse for Micheal Andretti
This is a piece of good news for Andretti. However, Red Bull’s price for AlphaTauri is most likely to cost more than $600m. Andretti is in a pickle considering the situation with the anti-dilution fee and the cost of buying a new team. Initially, the anti-dilution fee was $200m, according to the Concorde Agreement. It was signed in 2020 and remains effective for the 2021 to 2025 seasons.
If any new team wanted to enter Formula One, they had to pay $20m each to the existing teams. This was implemented to make up for the prize money. Andretti failed to buy an existing team and is looking to enter the sport as a new team in 2025. That is the final year of the Concorde Agreement. The FIA announced in January that the doors were open for new teams to join Formula One in 2025, 2026, or 2027. However, this comes with a set of rules. Three teams have expressed interest, namely, Andretti, Hitech, and Panthera Asia. If a team fulfills the criteria of the application, then the anti-dilution fee will become relevant.
As the Micheal Andretti drama blew up last season, the teams believe that the current fee is not enough. Things have turned around in Formula One. The sport has become immensely popular over the last three years thanks to Netflix’s Drive to Survive. And the financial situation has also changed with the cost cap implementation. Certain teams are now in a position to turn away buyers as well. There will be a new Concorde agreement in 2026, and the anti-dilution fee will increase by triple the amount or even more. It is no wonder Andretti wants to enter the sport as soon as possible. But the current teams want to make a change in the ongoing Concorde agreement as well. This will not bode well for Andretti-Cadillac.
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Justin P Joy
(4885 Articles Published)