Carlos Sainz Jr from Spain, driving for Ferrari SF-24, competes in the Formula 1 World Championship, Rd 7, Emilia Romagna Grand Prix, held in Imola, Italy, on May 18, 2024, during Qualifying Day.
According to reports, the next Formula 1 Concord Agreement is set to impose a limit on Ferrari’s long-standing bonus payments. The Concord Agreement is a document that establishes regulations and commercial agreements between Formula One Management, the teams, and the FIA for Grand Prix races. Currently in effect until 2025, discussions are underway to establish new terms for 2026 and beyond.
One of the main topics of discussion is the distribution of prize money among the teams. However, due to Ferrari’s historical importance in F1, being involved since the second race of the World Championship in 1950, the Italian team receives a bonus payment each year. It is understood that this bonus payment is currently 5% of the prize fund if the total money shared among the 10 teams does not exceed $1.1 billion. This percentage can increase to 10% if the prize funds reach $1.6 billion.
To ensure a fair financial playing field for all competitors, a friendly agreement has been proposed. Under this proposal, Ferrari’s bonus prize would continue but be limited to 5%, regardless of the total prize. This measure aims to prevent Ferrari from gaining an unnecessary financial advantage, although the team is already considered financially strong.
During a recent earnings teleconference, F1 CEO Stefano Domenicali emphasized the importance of maintaining stability in the sport and continuing discussions with teams and relevant parties to finalize the details of the Concord Agreement for a stronger long-term future.
Regarding Ferrari’s position on the development of the Concord Agreement, Team Principal Fred Vasseur chose not to comment, maintaining the team’s stance in secret.
