Stefano Domenicali, Formula 1 CEO, implied an increase in the entry cost of the sport. He suggested a likely rise in the fee far above the currently defined value.
In February, the FIA initiated an entry process for the interested teams in to the world of F1. The FIA is currently accepting the application till the end of April. It will announce the final outcome in June.
Currently, a new entrant, if offered entry, has to pay a $200m in lieu of ‘anti-dilution fee’. Because of new entrant, old teams has to take a financial hit of the overall F1 income share. Therefore, this fee covers the loses of the exiting teams to an extent.
Different sources on the matter suggest different entry fee. The proper method to calculate the fee is still unclear.
The entry fee can heavily rise as the value of the teams have increase tremendously following post pandemic and Drive to Survive series. The agreed $200m value is still dependent on the team and their value.
Domenicali wants new fee
The teams have been pushing for a new number. The expected value can reach as high as $600m for the new entrant.
Additionally, Domenicali agreed with the team to review the entry fee.
He told F1 investors: “The process of having another team has been launched by the FIA. In our governance, in our Concorde, there’s a possibility to do it.
“But the evaluation has to be done together to see from the technical perspective, from the sporting perspective, for the financial stability. And to make the bigger picture, if a new team will give value to the league, to the sport. And there will be a different position.
“I go back to one point, the so-called anti-dilution payment was done at $200 million, just a couple of years ago. Because at that time no one would have expected that the value of this business would rise up so much.
“Today the situation is totally different, for sure. And it’s our duty to make sure that we protect the business the best way that we can, and have a bigger picture.”
The CEO is confident of increased investors interest in the sport.
“Today, there’s so many that would like to come,” he said. “There are teams that are more vocal than others, some of them are much more silent, but they are really expressing their interest.
“As always in life someone has to make that evaluation. And we’re part of this process, and we’re going to do the right thing at the appropriate time through this year.”
