The year 2023 was supposed to be Andretti’s year, but it has only been halfway there. The group led by Michael Andretti is eager to secure a spot in Formula 1, yet, with only nine days left in the year, they have achieved only partial success. After the FIA gave a full endorsement to the candidacy of Andretti Formula Racing LLC, confirming its technical and fiscal qualifications, all documents were forwarded to the Formula One Management (FOM) for necessary commercial discussions.
This is where the engine seems to have hit a roadblock, at least for the time being. The keys are in the hands of Liberty Media, which, for now, remains silent and tight-lipped. At least on this matter, because on this day, Stefano Domenicali has spoken extensively on various issues. The fate of the American consortium in F1 passes through Englewood.
And so begins the challenge. Even though Place de la Concorde was very clear in establishing strict criteria for entry, it only approved an application that met the required parameters. Now, Andretti must demonstrate that their group will add value to the entire category.
Andretti: Recent FIA-FOM tensions working against Michael?
Andretti Formula Racing LLC was the only entity that adhered to the selection criteria in all material aspects, but the FOM might demand more in a context that has recently heated up. Teams and Liberty Media didn’t appreciate Mohammed Ben Sulayem’s push towards the American team as they aim to protect the business based on the ten sporting franchises—a model that has successfully weathered the F1 crisis caused by the pandemic, currently generating high-intensity profits.
Furthermore, the recent ‘Mercedes-gate’ has further distanced Place de la Concorde, now seen as an adversary of the teams, an entity attempting to interfere in matters not belonging to it, as emphasized by Domenicali a few days ago. Andretti might risk becoming a sacrificial victim in a war that does not concern them, which would be a bitterly ironic outcome.
The risk being run, in summary, is that the incoming team gets approval based on technical requirements (which has been verified), but not from the FOM due to lack of commercial agreements caused by the external context. A potential war of appeals and legal battles, if things were to deteriorate abruptly, is not out of the question. Mohammed Ben Sulayem is aware, and a few weeks ago, he preemptively addressed the possibility of legal conflicts: “[…] What if one of the applicant teams takes us to court? I’m just enforcing the rules.”
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The decisive game is played on the timing of the operation. Teams push to buy time and wait for the expiration of the Concorde Agreement to draft the new version and impose it on Andretti, who would have to triple the entry fees as they are pushing to increase it from $200 million to $600 million. This could lead to significant reconsiderations or the aforementioned bureaucratic war, as the Americans will argue that the FIA’s acceptance date should be considered, and the new regulatory document cannot possess retroactive value.
Meanwhile, Andretti, undeterred, is working to structure the team and define vital strategic details, such as the issue of engines. Cadillac, a group affiliated with General Motors, will accompany Michael on this venture. But before an in-house engine is ready, an interim supply agreement is being sought, previously identified as Renault.
The old agreement with Alpine has expired as it was assumed that entry into Formula 1 would be granted as early as 2025. Bruno Famin, vice president of the French group, explained that the only solution would be to renegotiate the agreement. This idea is gaining momentum these days because the solution could be compatible with a debut in 2026.
While these destinies unfold, Andretti must work diplomatically and provide assurances to the existing ‘ten sisters’ currently present in the circus, making it clear that they are not a pawn of the FIA but intend to enter the business to enhance its value. Andretti – Cadillac must rejuvenate the F1 brand with its mere presence.
It doesn’t end here: the American group must offer objective evidence of its immediate competitiveness and not be the Cinderella that lags far behind the competition, only catching up in years of uncertain recovery.
These factors might delay Andretti’s entry, initially scheduled for 2025. A necessary reassessment to make the candidacy robust, to understand whether to start producing the engine in-house, and, above all, to adapt to the new and more lucrative (for the currently present entities) Concorde Agreement. Today, December 23, 2023, the certainty that F1 will expand to eleven teams cannot be guaranteed. Hard work is still needed to make it happen.”
