Concorde Agreement Formula 1admin
On August 18, 2020, Ferrari, McLaren and Williams announced that they had signed the new Concorde contract, while the following day, Formula 1 announced that the other teams had also signed the contract.  The new agreement, which was the first to be concluded under the new owner Liberty Media, is valid for seasons 2021 to 2025 and will come into effect on January 1, 2021. The challenges posed by the virus served as an additional reminder that something had to change, that is, as soon as the championship resumed, the trade agreement was also able to discuss. On March 27, 2006, the five teams supported by the Grand Prix Manufacturers Association – BMW Sauber, Renault, Honda, McLaren and Toyota – submitted their bids for the 2008 season and agreed to remain in the sport until 2012.   On May 14, 2006, the five TEAMS supported by the GPMA signed a Memorandum of Understanding with commercial rights holders (CVC/Ecclestone) that served as the basis for the following agreement.  As a result, there was no complete agreement for the 2008 season, as the memorandum, extensions and agreements with the other teams served as a stop.“ „This is an important agreement for F1 and although the details are confidential, it offers stability and continuity for the future, which is why we are happy to take it beyond the line,“ Horner said. The three teams refused to sign the proposed concorde agreement, initially with the support of the remaining teams. On September 9, 1996, the new Concorde agreement was signed by all teams except McLaren, Williams and Tyrrell. The agreement was to apply from January 1, 1997 to 2002. According to a Formula 1 press release, the new agreement „will reduce financial and course disparities between teams, help establish the conditions for competition and allow for closer races on the track that our fans want to see more.“ The agreement is, among other things, a trade document that defines how television revenues and Formula 1 prices will be distributed – and which are expected to expire at the end of the year. Ferrari, McLaren and Williams announced their support for the revised race conditions on Tuesday, with the other seven manufacturers following. The agreement aims to achieve a more equitable distribution of the price.
In 1995, the FIA decided to transfer the commercial rights from Formula 1 to the Formula 1 administration for 14 years. In exchange, Ecclestone would make an annual payment. McLaren, Williams and Tyrrell protested by rejecting the proposed Concorde Agreement (negotiations for which it began in 1993). Ken Tyrrell, in particular, was outraged that Ecclestone, as president of OFZL, negotiated the transfer of the organization`s rights to his own company.