The regulatory understanding constitutes the second segment of the Formula 1 Concorde Agreement, existing in parallel with the commercial arrangement that received endorsement before the Australian Grand Prix in March and is slated to be effective from 2026 until 2030.
The International Automobile Federation (FIA), as the sport’s governing body, and Formula One Management (FOM) jointly disclosed this compact during this week’s FIA General Assemblies held in Tashkent, Uzbekistan’s capital, an event which also featured Friday’s FIA Awards ceremony and Mohammed Ben Sulayem’s re-election as president.
The time gap between the signing of the two agreements indicates that the governance pact, which, unlike the commercial one, also includes the FIA, required significant time to finalize its particulars. This thoroughness was necessary because it establishes crucial aspects of the championship’s operation, such as the voting mechanisms for F1 Commission gatherings, the participation fees paid by teams to the FIA, the scope of the governing body’s authority, and other logistical details.
Formula 1 CEO Stefano Domenicali remarked: “This accord guarantees that Formula 1 is ideally positioned for continued global expansion. I extend my gratitude to FIA president, Mohammed Ben Sulayem, and all the participating teams for their cooperative spirit and resolve in our discussions to secure the best outcomes for the entire sport.”
Autosport understands that a modification to the voting procedure within F1 Commissions is included in the deal, reducing the number of team votes required for a majority. This effectively grants both the FIA and FOM greater voting influence to enact regulatory adjustments.
Given the adjusted vote weighting, starting in 2026, the requisite number of votes for a standard majority in F1 Commission meetings has been decreased from six to four among the 11 teams, in addition to FOM and the FIA. Furthermore, a super majority will now necessitate six votes instead of eight. This alteration is intended to provide the championship with a more stable foundation for implementing challenging changes when necessary.
FOM to back FIA initiatives for enhancing its race operations
Azerbaijan Grand Prix
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It is also gathered that both FOM and the eleven participating teams will jointly provide increased financial contributions to the governing body via a revised F1 entry fee structure. The FIA is anticipated to reinvest these funds into the championship’s regulatory aspects, encompassing stewarding, marshalling, and other essential services.
Previously, teams incurred an entry charge composed of a fixed sum plus an amount determined by the points accumulated in the prior season. This arrangement led to highly successful outfits, such as Red Bull in 2023, facing a disproportionately high charge to participate in the subsequent season, while teams at the lower end of the standings, with fewer points, contributed comparatively little. Going forward, teams are reportedly to be levied a fee based on their constructor championship standing, following a progressive scale from first to last place.
This alteration in framework is projected to elevate the total fees paid by teams to the FIA by approximately $15 million annually, with midfield teams, in particular, seeing their individual contributions rise by several million dollars. This approach aligns with the method of prize money distribution under the commercial agreements, which allocates $9 million per midfield position. It is further expected that F1’s ongoing commercial expansion will mitigate the higher entry fees for the affected teams.
Responding to requests from competitors for the FIA to enhance the professional standards of its stewarding and other services for the series, it is understood that the governing body put forth a proposal to upgrade its F1 operations and outlined the associated increased expenditures, a plan which received backing from FOM.
“We are generally content to divide the proceeds in a more organized and equitable manner, but if we proceed with this, we wish to ensure the funds are directed towards professional development, service enhancements, and similar objectives,” a senior team representative recently conveyed to Autosport.
President Ben Sulayem affirmed that the additional financial resources would be utilized by the governing body to reinforce its F1 operations.
Mohammed ben Sulayem, FIA President and Stefano Domenicali, CEO of the Formula One Group on the grid
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“This arrangement enables us to persist in modernizing our regulatory, technological, and operational capacities, including providing assistance to our race directors, officials, and the myriad of volunteers whose expertise underpins every competition,” Ben Sulayem was quoted stating on Friday. “We are committed to ensuring that Formula 1 remains at the cutting edge of technological advancement, establishing new benchmarks in global sport.”
It is also understood that the new accord will enhance the FIA’s overall presence within the paddock. Additionally, an article within the entirely new Section A of the 2026 regulations mandates that teams display the FIA logo on the nose section of each vehicle.
“Each F1 vehicle must display the FIA insignia, in either a blue or white hue, with a minimum dimension of 75mm in height,” states Article A2.3.4 of the overarching regulatory stipulations. “This insignia must be positioned on the uppermost part of the nose or on either lateral surface of the nose and be discernible from the side profile of the vehicle.”
Sources have intimated that a more advantageous distribution of revenue could facilitate Formula 1’s efforts to increase the quantity of sprint events and assist the FIA in covering its associated logistical expenditures.
Up to this point, Ben Sulayem had shown hesitation in expanding beyond six sprint events per season, citing concerns regarding the impact on FIA personnel workload and financial resources. However, as previously reported, FOM is reportedly eager to reach a double-digit number of sprint events as early as the 2027 season, given that sprint weekends have had a demonstrably positive influence on race organizers and the commercial facets of the enterprise.