No 12th F1 team in the pipeline for an overcrowded grid claims Stefano Domenicali

Cadillac was the latest team to join the F1 grid and will make its debut next year. Reports of the FIA and Formula One Management being open to a 12th team have been circling the paddock for months. However, F1 CEO Stefano Domenicali recently came out and claimed that the pinnacle of motorsports has “no more room” for a 12th team.

The valuation of F1 and its teams has skyrocketed since Liberty Media’s takeover and the subsequent launch of the Drive to Survive series. As the financials become stronger, more automobile manufacturers, racing teams, and even investors want a piece of the pie.

The popularity of the sport acts as marketing for the automobile manufacturers, while the car development leads to R&D, which is later integrated into the sport. On the other hand, for F1, a new team opens up a new market for the sport, while diluting the share of the current teams.

FIA President Mohammed Ben Sulayem came out a couple of months ago to speak about the possibility and circumstances under which a 12th team would enter F1. The FIA President was open to the idea of a 12th team while also speaking about the rumors of a Chinese team showcasing interest.

Grand Prix of Bahrain - Source: Getty

Stefano Domenicali recently came out and revealed that the sport doesn't have a place for another team. The share dilution for other teams and the significance of adding value to the sport were not the reasons quoted by Domenicali, but the logistics of accommodating another team.

“We have to be cautious. We’ll only evaluate a bid of great significance because I think we’re already at a point with no more room – logistically we’re at the limit.” said Stefano Domenicali (via Autosport)

Detailing how investing in, or buying a current team (like what Audi has done with Sauber) is the way forward for anyone looking to join the sport, the Italian added,

“I see great interest from funds and investors looking to buy current franchises – let’s call them that – because a team’s value is growing exponentially, and therefore financial interest in investing in F1 is also increasing. We see it first-hand because we receive many enquiries, and the same happens to the teams. But precisely because things are going well, we must be prudent and protect the value of what we’ve built.”

Although F1 had 24 cars on the grid (12 teams) just over a decade ago, there are a lot more races on the calendar, making logistics a challenge. Also, the sport has grown, and so has the number of employees in fans in the paddock and pitlane, and adding another team on top of Cadillac would become a logistical nightmare.

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FIA President Mohammed Ben Sulayem is open to the idea of having a 12th F1 team

Rumors of a Chinese bid to join F1 as the 12th team started circling the paddock in July this year. FIA President Mohammed Ben Sulayem came out and detailed the prospect of another team, spoke about the rumors of the Chinese bid, and revealed what it would take for the sport to consider another team joining the grid. He said, (via PlanetF1)

“I still feel that we need more teams [rather] than more races.”

“We have an 11th team. I believe we should look into the performance of the 11th team, and then, if there is a Chinese [bid], and I will speak on behalf of them now in front of you, they [FOM] will agree to that, because it is about sustaining the business,”

“Do we have to fill up [the grid] with a 12th team for the sake of filling up [the grid] with a 12th team? No. It will be the right team,” he added

Cadillac reportedly paid $450M as the anti-dilution fee, and it might be the same, or likely a higher figure, in case a 12th team joins the grid.