Steiner expects $200m F1 dilution fund to be adjusted in the future

Gunther Steiner expects the $200 million dilution fund any new entrant must pay before joining the Formula 1 grid to be adjusted to reflect the increasing value of teams.

Steiner expects $200m F1 dilution fund to be adjusted in the future

F1 is currently attracting interest from American racing marque Andretti Autosport as a potential 11th entry in the near future.

But Andretti’s plans have been met with a lukewarm reaction from most of the F1 paddock amid concern about the financial impact caused by adding another team to the field.

Under the terms of the Concorde Agreement agreed by teams in 2020, any new entry must pay a $200m fee that gets split evenly between the existing outfits. This dilution fund is intended to offset the loss in revenue caused by splitting the prize money between 11 teams instead of 10.

Haas F1 boss Steiner has been clear in his view that F1 should stick with the current 10-team grid due to the stability and health of all the operations.

“You've got 10 very good teams or good teams, they're all stable,” Steiner said in Canada last week. “Why should we change something if it works like this? At the moment, we are in a good place.”

Asked by Autosport if he thought the dilution fund proposal worked, Steiner felt it needed to be adjusted in the future to reflect the commercial boom F1 has enjoyed since the $200m figure was agreed.

“The dilution fund was set a few years ago, when the value of Formula 1 was different,” Steiner said.

“I think one of the things will be, should we readjust it to current market rate, which is a lot more than that one? But I think that's a very difficult process to do.

“But if you're really honest, and you look at when we signed the contract in 2020, teams were going for a lot less money than these days.

Kevin Magnussen, Haas VF-22

Kevin Magnussen, Haas VF-22

Photo by: Zak Mauger / Motorsport Images

“The sport has made a big progression in value. So at some stage it will be adjusted, but I don't think that is the biggest issue.”

Andretti came close to securing involvement in F1 last year through a majority takeover of the Sauber Group, which runs Alfa Romeo’s team, only for the deal to fall through.

With none of the remaining teams looking to sell and their valuations predicted to near $1 billion in the coming years, there has been an emphasis from many on protecting the value of the current grid and rewarding their investment.

In Monaco, F1 CEO and president Stefano Domenicali said that any new entry would have to be “really significant” and that he thought 10 teams was the right number of the series.

“Today, it’s not a problem of having more teams, because we have a list,” Domenicali said.

“Some of them are more vocal than the others, but we have a lot of people or a lot of investors who would like to be in Formula 1. But we need to protect the teams. This is really another sign of a very healthy system.”

shares
comments

Related video

Williams to trial updated F1 aero package at British GP
Previous article

Williams to trial updated F1 aero package at British GP

Next article

Piquet apologises for Hamilton comment, claims no racial intent

Piquet apologises for Hamilton comment, claims no racial intent
The relaxed home life that helps F1’s Danish superstar to deliver Plus

The relaxed home life that helps F1’s Danish superstar to deliver

The unrelenting grasp of the tax man prompts most racing drivers to move to the likes of Monaco, Switzerland or Dubai. But, as OLEG KARPOV found out, Kevin Magnussen is quite happy where he is, thank you very much – at home, with his family, in Denmark

Formula 1
Oct 5, 2022
How Perez has shown what many F1 drivers need from the 2022 season run-in Plus

How Perez has shown what many F1 drivers need from the 2022 season run-in

OPINION: Sergio Perez’s Singapore triumph arrested a big decline in his Formula 1 performances against Max Verstappen at Red Bull since his Monaco win. He now needs to maintain his form to the season’s end, while others are also seeking a change in fortunes

Formula 1
Oct 5, 2022
How the FIA should punish any breaches of the F1 cost cap Plus

How the FIA should punish any breaches of the F1 cost cap

OPINION: On Wednesday, the FIA will issue F1 teams with compliance certificates if they stuck to the 2021 budget cap. But amid rumours of overspending, the governing body must set a critical precedent. It needs to carefully pick between revisiting the bitterness of Abu Dhabi, a contradictory punishment and ensuring parity for the rest of the ground-effect era

Formula 1
Oct 4, 2022
Singapore Grand Prix Driver Ratings 2022 Plus

Singapore Grand Prix Driver Ratings 2022

A testing return to the Singapore Grand Prix in tricky conditions created plenty of hazards and mistakes for the Formula 1 drivers to fall into. That partly explains a number of low scores, including from a handful of high profile runners, allowing others to take a starring role under the floodlights

Formula 1
Oct 3, 2022
The two key contributors to Leclerc's defeat to Perez in F1's 2022 Singapore GP Plus

The two key contributors to Leclerc's defeat to Perez in F1's 2022 Singapore GP

In a marathon Formula 1 Singapore Grand Prix, Sergio Perez’s victory was only assured hours after the race due to a stewards investigation. Throughout the contest the Red Bull driver impressively held off Ferrari’s Charles Leclerc in changing conditions to see the Mexican pull out enough of an advantage to negate his post-race penalty

Formula 1
Oct 3, 2022
The time-honoured manufacturer model that can't apply to all F1 teams Plus

The time-honoured manufacturer model that can't apply to all F1 teams

What happens, asks MATT KEW, if the old adage of win on a Sunday, sell on a Monday is no longer true for F1 manufacturers?

Formula 1
Oct 2, 2022
Why is Oscar Piastri F1's most sought-after rookie? Plus

Why is Oscar Piastri F1's most sought-after rookie?

The Australian rising star is fast, consistent, confident, adaptable and has shown excellent racecraft, but there’s already a taint to his reputation. That hasn’t stopped him becoming the hottest property in this year’s F1 driver market and why McLaren moved fast to snap up the 21-year-old

Formula 1
Sep 30, 2022
The unintended benefit that F1's new engine rules era will deliver Plus

The unintended benefit that F1's new engine rules era will deliver

Formula 1's incoming engine rules shake-up has multiple targets. But it may also solve what has been a bone of contention since the hybrids arrived in 2014. The new plan will allow the series to pump up the volume

Formula 1
Sep 29, 2022