The Concorde Agreement

Posted: February 16, 2006 by Neeraj in General, Writings

We all have heard a lot about The Concorde Agreement in Formula 1 off late. But what really is this Concorde Agreement ? What does this agreement caters to ? Why so much hue-and-cry over this agreement ?

I might not be able to answer all the question [written above and many more in your mind], but let’s get started on it.

In short, “The Concorde Agreement is a contract that dictates the terms by which the ten Formula One teams compete in races and take their share of both television revenues and prize money. There have been three separate Concorde Agreements throughout the history of F1, all of whose terms are kept strictly secret.”

The Concorde Agreement is named after “Place de la Concorde”, the site of the FIA’s office in Paris. The agreement has 13 parties, the FIA, the 11 teams, and Mr Ecclestone.

There have been several versions of the Concorde Agreement. First one was in effect from 1982 to 1986. Next one was from 1987 to 1991. Third one from 1992 to 1996 and the latest one is in effect from 1998 till 2007 (with some changes from time to time).

The current Concorde Agreement [effective 1998 to 2007] is available here including a link to download it in pdf format [believe me, it’s very loooong].

The latest hue-and-cry is based on a new Concorde Agreement that was drafted around 2003-2004 and has already been signed by 5 constructors – Ferrari, Red Bull, Williams, Midland & Super Aguri [Red Bull is running two teams in this season, the Red Bull Racing & Scuderia Toro Rosso, so that’s 6 constructors who had signed the new Concorde Agreement].

The other 5 teams [BMW, DaimlerChrysler, Honda, Renault & Toyota] has formed GPMA [Grand Prix Manufacturers Association] in year 2005. They have been talking to break away from FIA post 2007 [when current Concorde Agreement ends] and form their own Grand Prix motor racing. As per them, the Concorde Agreement in it’s current form is benefitial to some teams only and does not do good for the game as whole.

Of what you have heard till now, about the new Concorde Agreement, do you think it is biased towards a few teams only ? Should GPMA really break away from FIA and start their won GP motor racing after 2007 ? What do YOU think as a follower of Fomrula 1 ?

TAGS: , , , , , , , , , , , , , , , ,

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s