Why Ferrari is worried about economic future of Formula 1

Frederic Vasseur of Scuderia Ferrari raises an interesting issue. Let’s take it step by step, though. In Formula 1, money matters, especially since Liberty Media entered the Circus, taking control of the pinnacle of motorsport. The U.S.-based ownership has its hands full on various fronts. One, in particular, is not giving the Americans peaceful dreams. We are talking about the expansion of participating teams in the championship, which could see 22 cars on the grid for the first race starting from 2026.

In times gone by, the International Federation set the points required for entry into F1. The aspirants, to be precise, four of them, underwent an evaluation based on their technical, sporting, and financial capabilities, then assessed for experience and available human resources. After careful analysis, Andretti Formula Racing LLC progressed to the next phase as the only team capable of meeting the stringent criteria.

The FIA has, therefore, accepted the transition to “phase two,” which seems to be more complicated than initially thought. The U.S. team is, in fact, “stuck” in a mere commercial matter. In this regard, despite the customary words, the teams currently in the Circus seem to harbor some reluctance towards the eleventh team. The reason is straightforward: dividing the pie into more pieces means that each slice for each diner will consequently be smaller.

In this context, Andretti has expressed its opinion, arguing that their presence could increase the overall revenues of the category. A clear factor that would somehow compensate for the initially lower revenue distribution. However, the teams that have competed in Formula One until now do not seem to agree at all. This is evidenced by the measure that introduces a sort of fee for each new aspirant to be paid into the coffers of F1.

It is a significant amount: a whopping $200 million, which, over time, seems even too little, as the current teams have even asked to triple the payment, reaching a threshold of $600 million. A kind of “compensation” that would cover the financial holes caused by the entry of a new team into the exclusive world of F1.

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Vasseur: Ferrari’s team principal is worried about the economic future of F1

In addition to the various events mentioned in the article’s introduction, there is a fact that greatly troubles the parties. We are talking about the famous Concorde Agreement, which will expire in 2025. A new agreement for the following season is not easy to read. FIA, FOM, and the teams will have to sit down at the table to find a compromise that can fully satisfy all the participants’ desires. Moreover, within this already complicated scenario, the salary cap comes into play, which, in fact, does not make things easier. On these issues, the boss of GES, Frederic Vasseur, recently expressed his views.

The French manager is concerned. He argues that F1 has not learned how various dynamics need to be modified. This, despite the strongly suggestive past. A changing “financial picture” that, if not managed well, could cause more damage than hail. In short, harmful uncertainty that promises nothing good. The Ferrari manager has very clear ideas about it, as organization and rules will be significantly more exposed to the elements if there are 11 teams instead of ten.

The Frenchman’s concerns are forcefully revealed. Yes, because when things go well, positivity and optimism abound. But as soon as things turn sour, keeping in mind that, for Fred Vasseur, a negative scenario could promptly arise, then the complaints will come abundantly. Therefore, he suggests attention to this point regarding the future, as inflation and its inclusion in the budget cap, and the increase in the amount of cash flow used by teams as companies are discussed. Not to mention the desire to reduce income.

A series of changes that generate instability in business management. The headache is significant, Frederic says, supported by the former Mercedes engineer James Vowles, now with Williams. According to the Felbridge technician, the problem itself does not concern the entry of another team into F1 but rather the lack of financial stability that, in fact, would not allow it at the moment without risks. His idea is clear: consolidate the economic status of the category and only then consider new competitors.

One thing is certain, once again: looking out for one’s interests in these cases is self-evident. And although, as loudly proclaimed by some protagonists, the problem is not Andretti per se, generally, the arrival of other teams in F1 is not well regarded by any of the teams. The tug-of-war is underway, and as things stand, describing the parties mentioned above as distant seems almost an understatement. Dark times are approaching, it seems…