In a meeting to the teams and the FIA, Liberty Media has presented it’s proposal for the future direction of Formula One, which is scheduled to take effect in 2021.
With the current Concorde Agreement set to expire in 2020, the owners of Formula One, Liberty Media, have outlined their key areas for alteration.
In a meeting with the teams and the sport’s governing body, the FIA, Liberty Media have suggested areas which need addressing in the new agreement; the power units, costs, revenues, sporting and technical regulations, and governance.
Since Liberty Media’s purchase of the sport over a year ago, Formula One’s managing director of motor sports, Ross Brawn, has been vocal in his desire to alter the sport into a cheaper, simpler, louder and more competitive series.
In the latest publication of key points, Liberty Media have highlighted the need to make the sport more attractive to fans and potential entrants, whilst still allowing teams and power unit manufacturers to have freedom to innovate.
In addition to this, cost-saving remains high on the agenda, with Liberty looking at standardising more components but allowing teams to design components in the areas of most interest to fans, such as aerodynamics and suspension systems.
Perhaps most importantly for the teams, Liberty have again underlined the need for a well-balanced revenue distribution, whilst adding revenue for power unit suppliers.
Formula One’s Chairman and CEO Chase Carey re-iterated the company’s desire to strike a balance between maintaining the sport’s history and developing increased competition.
“Formula 1 is a sport with a rich history. We want to preserve, protect and enhance that history by unleashing F1s potential, by putting our fans at the heart of a more competitive and more exciting sport,” said Carey.
“We are driven by one desire: to create the world’s leading sporting brand. Fan- centred, commercially successful, profitable for our teams, and with technological innovation at its heart.”
Key Strategic Initiatives
Power units (PU)
- The PU must be cheaper, simpler, louder, have more power and reduce the necessity of grid penalties.
- It must remain road relevant, hybrid and allow manufacturers to build unique and original PU.
- New PU rules must be attractive for new entrants and Customer teams must have access to equivalent performance.
- We believe how you spend the money must be more decisive and important than how much money you spend.
- While there will be some standardised elements, car differentiation must remain a core value
- Implement a cost cap that maintains Formula 1’s position as the pinnacle of motorsport with a state-of-the-art technology.
- The new revenue distribution criteria must be more balanced, based on meritocracy of the current performance and reward success for the teams and the Commercial Rights Holder.
- F1s unique, historical franchise and value must and will still be recognised.
- Revenue support to both cars and engine suppliers.
Sporting and technical rules & regulations
- We must make cars more raceable to increase overtaking opportunities.
- Engineering technology must remain a cornerstone but driver’s skill must be the predominant factor in the performance of the car.
- The cars must and will remain different from each other and maintain performance differentiators like aerodynamics, suspensions and PU performance. However, we believe areas not relevant to fans need to be standardised.
- A simple and streamline structure between the teams, the FIA and Formula 1.