Concorde Agreement

The Concorde Agreement is the commercial agreement between the FIA (Fédération Internationale de l'Automobile), the Formula One Group (commercial rights holder), and the Formula 1 teams. It governs the commercial and sporting arrangements of Formula 1, including the distribution of prize money, the governance structure, and the teams' rights and obligations. The agreement is named after the Place de la Concorde in Paris, where it was first signed in 1981. The Concorde Agreement is renegotiated periodically — the current agreement runs from 2021 to 2025. The agreement is confidential, but its broad terms are known — teams receive a share of the commercial revenue, with the distribution weighted towards the most successful teams.

The first Concorde Agreement was signed in 1981, following a dispute between the FIA and the teams over commercial rights. The agreement has been renegotiated several times since then. The 2020 Concorde Agreement, which came into effect in 2021, included the introduction of the Budget Cap and new governance arrangements.