F1 in talks for a $600 million anti-dilution fund for the next Concorde Agreement: Reports

F1 Grand Prix of Monaco - Final Practice
Charles Leclerc of Monaco driving the (16) Ferrari SF-24 on track during final practice ahead of the F1 Grand Prix of Monaco

F1 is reportedly in talks with the teams for having a higher anti-dilution fund for the next Concorde Agreement beginning from the 2026 season and beyond. Heading into the new aero regulations in 2022, the commercial rights holders of the sport and the 10 teams on the grid signed a Concorde Agreement until the 2025 season.

It consisted of different aspects such as the prize money distribution at the end of each season and also added the anti-dilution fund to allow teams to make money from a potential new entrant on the grid. The fund was set at $200 million and was agreed by the team before signing the agreement.

However, as per Motorsport.com, during their discussions for the new Concorde Agreement for the 2026 season, F1 teams are pushing for the value of the fund to be increased from $200 million to $600 million, rising to $700 million from 2028 onwards.

The Formula 1 teams are billion-dollar entities and have seen their valuation increase in the budget cap era substantially with even the worst finishers being profitable. They believe since their market value has increased since the last Concorde Agreement, the new entrant should pay the value as per their current valuation.

Furthermore, the teams have also included an additional hurdle for the new entrant as they won't be subjected to any prize money in their first year in the sport. The reports of increasing the anti-dilution funds come on the back of American giants Andretti pushing for a slot on the grid in the future.

Red Bull F1 team boss gives his response on welcoming Andretti to the grid

Andretti Autosport was denied an entry on the F1 grid by Formula One Management (FOM) as the latter believed that they wouldn't be adding any value to the sport.

Speaking in the pre-race press conference in Monaco, Red Bull team principal Christian Horner suggested that the best route for Andretti to enter the grid should be acquiring a current team like Audi's acquisition of Sauber. He said:

"Yeah, absolutely. I mean, I think Andretti has a great racing heritage. Mario is a legend of the sport. And of course, Cadillac, a huge automotive manufacturer from the US. I think Formula 1 have said in 2028, that if they were to come with their own engine, they would obviously, I think, review it."
"But in addition to that, I think that if Andretti were to want to come, a little like Audi acquired Sauber, I think to protect the current franchise and stability that we have in the sport, then obviously their best route to goal is to acquire one of the existing teams."

After being denied entry for the 2026 season, Andretti are focused on getting into F1 by 2028 and have even set up a base in the UK to further push their bid.

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