For the new Formula One team, Domenicali suggests higher entry fees

To ensure sustainability and longevity, the entry fee should be significant enough to help fund team operations.

Stefano Domenicali, the CEO of Formula One, has provided the strongest suggestion yet that the cost of entry for new teams is likely to grow over the currently stipulated limit.

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The FIA initiated an entrance procedure in February that is still ongoing, with a decision expected in June after all proposals have been reviewed. Currently, if accepted, a new applicant must pay a $200 million "anti-dilution fee" that is split among the 10 current teams.

Officially, that figure is intended to represent the possible losses each team would suffer if an additional team took a piece of the Formula One revenue pie. Some sources also claim that it is related to the approximate bottom-end worth of a team like Williams at the time the last Concorde Agreement was signed. However, because of the cost cap, Drive to Survive, and a strong recovery from the COVID years, the sport is currently much stronger than it was when the $200 million number was agreed upon, and team values have grown proportionally.

With estimates as high as $600 million being mooted, the incumbent teams have been lobbying for a new calculation that effectively compares the entry fee to the notional value of an existing organization. Domenicali emphasized that since the original amount was agreed upon, the time has changed. He has consistently insisted that any new team must improve the sport.

In a statement to F1 investors, Domenicali stated that "the FIA has started the process of having another team." There is an option to do so in Concorde's governance. But a team evaluation must be conducted to see whether a new team will add value to the league and the sport from a technical perspective, a sporting perspective, a financial stability perspective, and in the grand scheme of things. Additionally, a different role will exist.

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" And, to return to one point, the so-called anti-dilution payment was made for $200 million just a few years ago, because no one expected the value of this business to climb so much at the time. "Today's situation is unquestionably different," and it is our responsibility to ensure that we defend the business in the greatest way possible while also looking at the bigger picture.

Despite the fact that the Andretti/Cadillac proposal is the most well-known, Domenicali emphasized that other possible competitors have also expressed interest. "There are so many people who want to come today," he stated. “Some teams are more vocal than others, and some are much more silent, but they are expressing their interest.” As is the case in every situation in life, an assessment must be made. Additionally, since we are involved in this process, we will act appropriately at all times this year.

Greg Maffei, CEO of Liberty Media, agreed with Domenicali and underlined how team value has increased. Now, regarding the $200 million, he continued. The eleventh team was Manor. Furthermore, F1 entered administration in the UK shortly before we invested in it [in late 2016], and it was subsequently sold for £1. A significant change has occurred in the world.

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