Andretti Formula Racing’s application now awaits final approval of Formula 1 teams.
The first step for another team to be on the F1 grid is complete as on Monday, after months of speculation, the FIA confirmed that the application lodged by Andretti Formula Racing had been approved.
Andretti Formula Racing’s bid to join the Formula 1 grid is now down to its commercial discussions with Formula One Management—representatives of the 10 existing F1 teams— after governing body the FIA approved its application.
The FIA launched a call for expressions of interest at the start of 2023 and Andretti went public with its bid, which has support from General Motors through its Cadillac arm, to join Formula 1 in either 2025 or 2026.
Out of four applicants—Andretti, Hitech Grand Prix, Rodin, and LKY SUNZ—only Andretti received approval from the governing body into Phase 2. This phase involves the meticulous screening of the applicants’ sporting and technical capabilities, resources, funding, and experience in the field. The initial expression of interest marked the beginning of Phase 1. FIA president, Mohammed Ben Sulayem, emphasized the strict criteria set from the beginning. He added that the intention was to accept prospective entries that not only met the set criteria but could also bring value to the sport. Andretti Formula Racing LLC was the sole applicant fulfilling these selection criteria.
“Andretti Formula Racing LLC was the only entity which fulfills the selection criteria that was set in all material respects,” said Sulayem. “I congratulate Michael Andretti and his team on a thorough submission. I also want to thank all prospective teams for their interest and participation.”
Andretti’s approval was no surprise, given their long-term interest and the recent acquisition of GM as an ally seen as a significant driver for the application. However, Andretti must now move into Phase 3, as outlined by the governing body.
This involves commercial discussions with Formula 1, and which remains a big hurdle to clear.
Formula 1’s CEO Stefano Domenicali and Liberty Media chairman Greg Maffei have both been lukewarm to the idea of expanding the grid and are under no obligation to do so, stressing that any new applicant must prove what it can bring to the table. The existing 10 teams have also been hesitant over their fears that their share of Formula 1’s revenues will be impacted.
Under the Concorde Agreement, which binds together Formula 1, the FIA and the 10 teams, there is capacity for the grid to expand to 12 teams, and any new entrant must pay a $200 million anti-dilution fee. This would be split between the existing teams as a form of compensation for future prize money being divided 11 ways rather than 10. But teams have suggested that a figure of $200 million is too low because of the rise in Formula 1’s popularity in recent years and have been pushing to increase the figure for the next Concorde Agreement, which are in the early stages of discussion ahead of its implementation in 2026.
“We note the FIA’s conclusions in relation to the first and second phases of their process and will now conduct our own assessment of the merits of the remaining application,” read a brief statement from Formula 1.
Formula 1 has not had a new team since 2016, when Haas joined the grid, a year before Liberty Media took over the championship.