The crucial detail that could determine Andretti’s F1 bid success 

Formula 1 CEO Stefano Domenicali cannot have been hugely thankful when FIA President Mohammed Ben Sulayem announced in early October that the sport’s governing body had approved Andretti Formula Racing’s entry application, thus handing the poisoned chalice to Formula 1 in order to discuss commercial terms. A toxic game of pass the parcel.

As is always the case, the FIA followed a process. These processes are always described as ‘strict’ or ‘stringent’, yet the last time the FIA followed its own path to determine the viability of new F1 teams things really didn’t work out. 

As the person at Cosworth responsible for supplying engines to USF1, Campos Meta, Manor Grand Prix and Lotus Racing in 2010, it soon became apparent to me that one of them had no clue, another had a wonderful dream without sufficient backing, and the final pair had money but underestimated both the scale and relentless nature of the challenge.   

All are now a distant memory, not because there is anything wrong with having a dream, but because Formula 1 did not offer a business model that stood any realistic chance of survival. All of them became a nightmare, particularly for unpaid suppliers. 

That was then, of course, and this is now. As we reach the end of 2023 Formula 1 is in rude health financially, the 10 teams operate profitable franchises in all but name, and those who possess a bit of business acumen have potential sponsors climbing all over them.   

The groundswell of opinion among fans on social media and certain specialist press is that it is inconceivable for an entry from Andretti to be even questioned. Equally, that the existing teams are led by nasty, greedy gatekeepers who don’t want anyone else invited to their party.

Photo by: Mark Sutton / Motorsport Images

Andretti's F1 future now rests with series' bosses after the FIA approved its application

The teams have a point, however, and it is one Formula 1 supports. Considering that half of them courted existential challenges in recent times, specifically Williams, Sauber, Haas and the teams now known as Alpine and Aston Martin, it’s easy to understand why team bosses are not exactly falling over themselves to let a new team in at precisely the moment Formula 1 has become both stable and financially attractive. 

PLUS: The questionable motivations revealed by F1’s predictable Andretti stalemate

Sharing the prize money 11 ways instead of 10 is one thing, but it’s also worth considering that the US sponsorship marketplace is particularly vibrant at the moment. An Andretti team will necessarily target the self-same companies that Red Bull, Mercedes, Ferrari et al also want to court.

One view is that, rather than focusing on the team paying a one-off anti-dilution fund of $200m, Andretti should not be eligible to receive prize money for a period of, say, five years

Ultimately the solution will come down to the thing that fuels F1: money. This means Andretti’s ability to show it has enough money to not only enter Formula 1, but to be entirely self-sustaining for a sufficient number of years in order to demonstrate genuine staying power.  

One view is that, rather than focusing on the team paying a one-off anti-dilution fund of $200m, Andretti should not be eligible to receive prize money for a period of, say, five years. This should already have been covered since the FIA’s Expression of Interest document for new entries included the requirement for a detailed business plan, including financial projections, for the first five years of the project.

What those projections show in terms of any assumption of a share of prize monies will be telling, for therein lies the dilemma facing Domenicali. If a new team is in any way reliant on a share of the prize fund for its survival, whether wholly or substantially in part, it will be difficult for F1 and its constituent teams to accept it.

Photo by: Andy Hone / Motorsport Images

Will Andretti be given the green light to join the F1 grid?