In a groundbreaking development, General Motors (GM) has reportedly agreed to pay a staggering $450 million anti-dilution fee to secure its entry into Formula 1 in 2026. According to sources cited by BBC Sport, the American automotive giant and its partner TWG Global will shell out more than double the current $200 million entry fee stipulated under existing F1 regulations.
This unprecedented figure reflects Formula 1’s soaring global popularity and the increasing stakes for new entrants to join the elite motorsport series.
What Is the Anti-Dilution Fee?
The anti-dilution fee is designed to compensate existing F1 teams for the financial impact of adding a new competitor to the grid. With F1’s revenues shared among its teams—approximately 63% of total income—the arrival of an 11th team means the prize pool will be divided into smaller portions.
The significant hike in the fee also reflects growing resistance from existing teams to new entries, as they fear dilution of prize money and sponsorship opportunities. The hefty $450 million figure aligns with ongoing negotiations to increase the anti-dilution fee as part of the new Concorde Agreement, set to come into effect in 2026.
Cadillac Brand Set to Spearhead GM’s Entry
The GM-Cadillac team, set to debut in the 2026 season, represents a massive step for the United States in cementing its place within Formula 1. With F1’s popularity skyrocketing in North America—bolstered by races in Austin, Miami, and Las Vegas—GM’s presence is expected to further solidify the sport’s foothold in the U.S. market.
Outgoing Liberty Media CEO Greg Maffei acknowledged the milestone, emphasizing the value GM brings to the sport:
“With Formula 1’s continued growth plans in the US, welcoming an impressive US brand like GM/Cadillac to the grid and GM as a future power unit supplier could bring additional value and interest to the sport.”
FIA’s Push for Expansion
The agreement follows a strong push from the FIA and its president, Mohammed Ben Sulayem, to expand the grid. Ben Sulayem has been a vocal advocate for new teams and hailed GM’s entry as a major win for the sport:
“General Motors is a huge global brand and powerhouse in the OEM world. I am fully supportive of the efforts made by the FIA, Formula 1, GM, and the team to maintain dialogue and work towards this outcome.”
This marks a significant step forward after months of lobbying by both GM and FIA for a U.S.-based entry, despite initial resistance from several current teams.
A Transformative Moment for Formula 1
The $450 million fee underscores the stakes for new entrants and the unprecedented growth of Formula 1 in recent years. For GM, it represents an ambitious foray into the pinnacle of motorsport, positioning Cadillac as a global symbol of racing excellence.
With its debut looming, GM’s entry could reshape the dynamics of Formula 1 and its expanding presence in the United States. Meanwhile, current teams will be watching closely as the sport’s revenue model undergoes one of the most significant adjustments in its history.
The countdown to 2026 has officially begun, and GM’s entry could be the spark that further ignites Formula 1’s global revolution.
