Formula 1, the FIA (Fédération Internationale de l’Automobile), and all eleven teams competing in the FIA Formula One World Championship have officially ratified a new version of the Concorde Agreement that will govern the sport from 2026 through to the end of 2030. This marks the completion of the remaining part of the Concorde Agreement negotiations — specifically the governance side — following the earlier conclusion of the commercial section of the pact earlier in the year.
The Concorde Agreement is the foundational contract that defines how Formula 1 operates as a sport, linking its key stakeholders: the FIA, Formula 1’s commercial rights holders (Formula One Group/Liberty Media), and the teams. Originally first signed in 1981, the Concorde Agreement has been periodically updated to reflect the evolving needs of the sport, including how revenues are distributed, how governance and decision-making work, and how the sport’s regulations are structured. The 2026 agreement is the ninth such pact in the sport’s history and represents a crucial milestone in securing how Formula 1 functions for the foreseeable future.
Two Parts of the Agreement Finalized
The new Concorde Agreement for 2026–2030 was concluded in two major segments:
1. Commercial Agreement – this portion was signed earlier in 2025 and focuses on the economic aspects of the sport — including how revenue and prize money are divided, team entry fees, and the rights Formula 1 holds over the use of team intellectual property for broadcasting and other commercial purposes.
2. Governance Agreement – the final piece agreed and signed by all parties in December 2025, this defines how the sport is governed in terms of regulatory control, operational responsibilities, voting procedures, and collaboration between teams, the FIA, and Formula 1 itself.
With both halves now concluded, the complete Concorde Agreement — covering commercial, sporting, and governance frameworks — will take effect from the start of the 2026 season and remain in place through the end of 2030.
Purpose and Need for the Concorde Agreement
At its core, the Concorde Agreement exists to ensure stability, cooperation, and shared direction among Formula 1’s primary stakeholders. Without such an agreement, there would be no unified contract enforcing participation, revenue sharing, or governance procedures, potentially leading to competing interests or even fragmentation of the sport.
The Concorde Agreement ensures that:
All current teams commit to participating in the championship for the duration of the contract; The FIA retains responsibility for sporting and technical regulations; The commercial rights holder can sell broadcast and sponsorship rights — and then distribute revenues in agreed proportions; and A stable structure is agreed upon for decision-making and rule changes.
Because Formula 1 is a complex enterprise with large commercial revenues and passionate global fan interest, this tripartite contract has become essential for the long-term sustainability and strategic direction of the sport.
Significance of the 2026-2030 Agreement
The completion of this agreement is particularly meaningful for a few reasons:
Long-Term Stability and Predictability
By locking in agreement from 2026 to 2030, Formula 1 creates a predictable environment that allows teams, sponsors, broadcasters, and investors to plan ahead with confidence. Long-term deals like this are rare in sport, and for a league as technically and financially complex as Formula 1, they are vital.
This kind of continuity is especially important now because 2026 will also bring significant technical regulation changes to the sport — including new power unit regulations and updated car design rules — which require a stable governance and commercial framework to be successful.
Alignment Between Stakeholders
This agreement re-affirms the alignment and cooperation between the FIA (as the sport’s regulator), the teams (as participants and competitive entities), and Formula 1 as the commercial engine of the sport. All parties have come together to agree on how the sport should be run and how revenues and responsibilities will be shared — which helps reduce friction and avoid disputes that could destabilise the championship.
The agreement also clearly demonstrates the teams’ commitment to the sport’s continued growth and evolution, particularly as new markets and audiences have taken interest in Formula 1, boosting global viewership and commercial value.
Professionalisation and Investment in Governance
Officials from both the FIA and Formula 1 have emphasized that the agreement helps usher in a new era of professionalisation. By clearly defining governance structures and operational roles, the sport’s regulatory and administration side can be enhanced. In practice, this means stronger race direction, improved stewarding, better officiating, and more organisational clarity.
In his comments, FIA President Mohammed Ben Sulayem underlined that the agreement will support the modernisation of the FIA’s regulatory and technological capabilities, including the officials and volunteers who are critical to race weekends.
Formula 1 CEO Stefano Domenicali also hailed the agreement as laying the groundwork for future growth, giving the sport a foundation for broader global expansion and ensuring it is “well-positioned to continue to grow around the world.”
What Comes Next
With the governance agreement now signed, all the administrative pieces are in place for the sport’s next big era starting in 2026. The Concorde Agreement will guide how the championship operates commercially and administratively, how revenues are shared, and how the sport evolves technically and competitively in a coordinated and mutually agreed direction.
As Formula 1 enters its next chapter — with new regulations, global audience expansion, and increasingly competitive racing — this multiyear agreement provides the structure needed to manage all these ambitions effectively.
