Formula 1 has officially announced the signing of the 2026 Concorde Commercial Agreement by all teams, marking a significant step toward securing the sport’s long-term financial strength and stability. This milestone was revealed on March 16, 2025, just before the start of the 2025 Australian Grand Prix, which kicks off the new season.
The 2026 agreement, the ninth iteration of the Concorde Agreement, was signed by all 11 existing Formula 1 teams, including the newly introduced Cadillac, who will join the grid for the 2026 season. This agreement, which comprises commercial and regulatory aspects, will serve as the foundation for how the sport operates, covering key elements such as entry fees and the distribution of broadcast and sponsorship revenue among the teams.
A Statement from Formula 1 highlighted the significance of this agreement, assuring stakeholders of its benefits. "Formula 1 can confirm all teams have signed the 2026 Concorde Commercial Agreement, which secures the long-term economic strength of the sport," said Formula 1 CEO Stefano Domenicali.
The financial framework established by the 2026 Concorde Agreement ensures teams will benefit from increased revenue streams and provides for fairer distribution models. With this agreement, the sport aims to create a more competitive and financially secure environment for the future.
"We thank all the teams for their engagement during this process to reach the best outcome for the sport," the statement continued, emphasizing the collaborative effort required to finalize the deal.
While the commercial framework has been set, the regulatory side, known as the 2026 Concorde Governance Agreement, is reported to be nearing completion. FIA, the sport's governing body, has stated it will finalize the governance terms of the new deal shortly.
This agreement arrives at a pivotal moment for Formula 1, heralding the start of new regulations for the sport. Effective from 2026, the new deal paves the way for changes concerning engine and chassis specifications expected to significantly influence the direction of racing.
Current provisions allow for up to 25 races on the Formula 1 calendar—a number which includes the currently scheduled events. The opening race for the 2025 season kicks off with the Australian Grand Prix, followed by the upcoming first Sprint weekend at the Chinese Grand Prix.
Stefano Domenicali, who has been at the helm of Formula 1, will continue his role as CEO and President until 2029. This announcement has also garnered positive feedback from within the racing community. Seven-time World Champion Lewis Hamilton commented on the significance of Domenicali's leadership, stating, "It’s great to see [F1] grow, it’s great to see the audience grow, to see the sport moving in the right direction. Thank God he’s staying, because it’s good to have a neutral good leader at the… helm."
With significant progress and the solidification of the agreement, the Formula 1 teams are positioned for sustained growth and stability. The forthcoming regulations promise excitement and competitive balance across the teams, with everyone eager to explore the potential new norms.
Overall, the signing of the 2026 Concorde Commercial Agreement not only reinforces Formula 1's position on the global sports stage but also sets the groundwork for its future endeavors. The commitment to enhanced revenue streams and the competitive spirit harbors optimism for both teams and fans alike, underlining the sport's resilience and growth potential.