New teams have to pay 200 million!
Formula 1 will probably remain with only ten teams for the foreseeable future. The hurdles for newcomers have become even bigger.
Kis an eleventh team coming into Formula 1? A few months ago, two projects announced a letter of intent to enter the premier class. An Asian project called Panthera Asia F1 and a project led by junior team manager Adrian Campos.
But that one of the two teams will actually get into Formula 1 is becoming increasingly unlikely. Actually, one could think that there is no better time to realize your dream of having your own Formula 1 racing team. From 2021, the teams will only be allowed to spend a maximum of 145 million euros per year, and this upper budget limit will drop further in the coming years. At the same time, income is distributed more fairly. Equal opportunities increase, as does the economic predictability of such a project.
Formula 1 will probably remain with only ten teams for the foreseeable future
But that is exactly what worries the team bosses of the existing racing teams. What if teams come with windy owners who just want to siphon off the money? A fairer distribution of the prize money also means that less remains for the individual. If instead of ten teams there were to drive again, the money would have to be divided between 13 and not just ten participants. For each individual there would be even less of the prize money cake.
More teams good for fans and drivers
So there is a hurdle built into the new Concorde Agreement that should be a real obstacle for newcomers: Anyone who wants to bring an eleventh team into Formula 1 has to pay 200 million dollars into the prize money! This should also ensure the existence of the existing teams.
To put that into perspective: in the five years between 1985 and 1989 alone, twelve GP teams got on board, in the 1990s there were only nine teams (eight team takeovers), in the 2000s only two teams and the last new racing team was Haas in 2016.