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By Lydia Mee
Sports Contributing Writer
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Greg Maffei, CEO of Liberty Media, has unveiled a new blueprint for the next Concorde Agreement negotiations, set to redefine Formula One's governance from 2026 to 2030. In stark contrast to the aggressive tactics under Bernie Ecclestone's era, the new strategy draws inspiration from the NFL.
The Concorde Agreement shapes the commercial landscape of Formula One by dictating the terms of participation for teams and stakeholders. Maffei's approach will pivot away from individualistic gains, advocating for a model where the league's welfare takes precedence, fostering a spirit of shared success and long-term sustainability.
Echoing strategies from American football, Maffei explains, as quoted by ESPN:
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"The prior regime really did put a lot of time in having the teams compete against each other. In many cases, they enjoyed just getting an edge on each other, rather than thinking about how to grow the sport.
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"We've tried to take really a page out of, I'd say in some ways, the NFL in the United States: compete hard on Sunday, but on Monday [it's] league first.
"We really want to grow the sport together. The teams have embraced that, and profited from that, because they've not only seen the growth in F1 revenues and their share of the profits in their own sponsorship, but we've also seen growth in the value of teams."
Since taking the helm of Formula One in 2017, Liberty Media has implemented several reforms aimed at balancing the financial playing field, notably introducing a budget cap of $135 million per team in 2020. These measures have paved the way for a more equitable competition, echoing the NFL's approach to revenue sharing and cap systems.
Maffei acknowledges potential challenges in the team's coming to an agreement, stating:
"There are surely issues we're going to fight over. What a surprise: they would like to make more money. I don't begrudge them that.
"I suspect some of that, they wish, might come out of our pocket. But in general, they appreciate we've tried to take the long view, and we try to take the view that we should all profit together."
Other discussions surrounding the next Concorde Agreement have brought up suggestions from teams to raise the entry fee for new teams from $200 million to $600 million in 2026, as well as concerns raised from team principal's such as Red Bull's Christian Horner who argues that staff members should not bear the brunt of the cost cap budget.
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