New F1 boss Carey set to scrap ‘infamous’ Concorde Agreement
Chase Carey, the new chairman and chief executive of motor racing’s Formula 1, will not negotiate a new Concorde Agreement with teams when the present commercial framework for the sport expires in 2020.
Carey (pictured), who took over from long-time Formula 1 promoter Bernie Ecclestone in January, told Autosport website yesterday that he wanted to agree a more “long-term partnership” with teams and the FIA, the international governing body for motorsport, which would not have a set expiration period.
He said: "We have the infamous document called the Concorde Agreement, which is this agreement that comes up every six to eight years - it comes up in 2020 - which defines the financial arrangements with teams.
"Our goal is to create much more of a long-term partnership, not a partnership that sort of has a point in time that you go out and renegotiate the next eight-year partnership, that there's a continuum."
Formula 1’s commercial rights changed hands in January of this year as US media giant Liberty completed the acquisition of the sport from a consortium led by previous owner CVC Capital Partners in a deal that valued the property at $8 billion.
In reference to the problems that have emerged because of the Concorde Agreement’s cycle of deadlines, Carey added: "It creates gamesmanship, if you've got that point in time, you have people posturing and positioning: 'what can I get out of it?
"What I'd like to have is everybody's priority being continually looking three years down the road, not looking at a specific point in time. I think they all welcome getting there, but we've got to drive it."
Carey said he wants the new Liberty-led era of Formula 1 to focus on a shared “vision” between teams and the commercial rights holder.
He explained: "Really what we're doing is we're saying we're working as partners that compete on the track, but share a vision of where we're going as a sport, and share the benefits of doing that together.
"It's a sport that historically was a little bit every man for himself, and how do you game each other and the like, and that leads to one plus one is one and a half.
“There's no question changing a culture that's been embedded for that long will take some time, but I think it's a transforming opportunity to really build a longer term, healthier relationship that benefits us both."
Negotiations for the last Concorde Agreement, signed in 2013, were reported to have been complicated by a clash between Ecclestone and Jean Todt, president of the FIA, over the latter’s demand for a bigger share for the federation of the huge revenues from Formula 1.
Last month, it was revealed that the 2013 agreement was being investigated by the UK’s Serious Fraud Office.
The SFO has been asked by Damian Collins, the chairman of the UK parliament’s Culture, Media and Sport select committee, to investigate whether a $5-million payment from Formula 1 to the FIA breached the country’s bribery laws.
The UK is home to the Formula 1 headquarters in London, the British Grand Prix held at Silverstone and many of the participating teams.
As part of the Concorde Agreement, the FIA also received a 1-per-cent stake in Formula 1 for the below-market price of $460,000 although this was sold on to Liberty Media at a significant profit earlier this year.
The present Concorde Agreement will expire in December 2020.
Meanwhile, Formula 1 today announced three new appointments.
Nigel Kerr has been named the series' new financial director and is take up his role in August.
Kerr, an experienced motorsport director, joins from Formula 1 team Mercedes, where has been chief strategic officer since 2014.
He has held senior roles with several other Formula 1 teams including Brawn, Honda and British American Racing.
Jason Somerville has been appointed head of aerodynamics and Craig Wilson has become head of vehicle performance.