FIA Sets Deadline for Teams to Join Formula 1 - Will Andretti's Entry Make the Cut?

The Qualifier is a weekly newsletter that breaks down motorsport's business, money, and culture (mainly Formula 1). Subscribers include investors, decision-makers, and casual fans. So if you are not a subscriber, sign up and join 40,000+ others who receive it directly in their inbox each week — it’s free.

We’re taking on four sponsors for Q1 and Q2 2023. If you’d like to bring visibility to your brand, service, or product, or know someone that would be interested, click the button below. 

The FIA has set a tentative deadline of 30 April for formal applications to be lodged for interested teams to join Formula 1 in 2025, 2026, or 2027, with a fee of $300,000 required.

Michael Andretti's organization, now aligned with General Motors through its Cadillac brand, has been the most vocal of the interested parties, but other candidates have adopted a more discrete approach. By 30 June, Michael Andretti should know if the FIA will approve his bid for a Formula 1 team.

The FIA has outlined that it is seeking any interested team to join Formula 1, and the application process will include aspects such as the technical ability and resources of the team, its ability to raise and maintain sufficient funding, and a detailed business plan for the first five years of its project.

Candidates must also outline sustainability ambitions and how it plans to achieve a net-zero carbon impact by 2030.

The FIA expects to decide on those applications by 30 June. All applicants must undergo due diligence checks, including individuals involved in the team's ownership, control, or management.

In a note outlining the process details, the FIA said: "For the avoidance of doubt, no new applicant has an automatic right of entry to the championship, and the maximum number of teams competing in the championship up to and including the 2025 season is capped at 12.”

"Existing F1 teams will be given priority over new applicants. The FIA also stressed that if no applicant is considered suitable by the FIA and/or commercial rights holder Liberty Media, no new team will be selected.”

The Process

Within 48 hours of submitting an expression of interest, or 17 February (whichever is the latest), the FIA will inform any candidates that it thinks could be suitable that they will move on to a more formal evaluation process.

This will require an application fee from teams of $300,000 (although the initial $20,000 figure can be taken off) to cover FIA expenses in completing its due diligence.

While the final details about what will be evaluated in this second stage will be laid out at the time, the FIA expects it to cover several key criteria.

These are:

1. The technical ability and resources of the team.

2. The ability of the team to raise and maintain sufficient funding to meet its financial obligations and be competitive.

3. The ability of the team to meet and comply with its obligations under the F1 Sporting, Technical, and Financial Regulations.

4. A detailed business plan (including financial projections) for the project's first five years.

5. The team's experience and capabilities in the automobile and/or motorsport sector (including technical experience, racing experience, facilities, equipment, and engineering resources) and relevant staff headcount/ experience.

6. Whether the team and all individuals proposing to participate in the ownership, control, or management of the team are fit and proper persons.

7. Considerations of sustainability, EDI (Equality, Diversity, and Inclusion), and societal benefit.

8. The FIA's assessment of the candidate's value may bring to the championship, including consideration of its reputation and integrity.

Here are the requirements in full detail:

Thoughts

The FIA and FOM should have laid this out two years ago. I understand why this is a priority now, but with the efforts they’ve put into growing the sport, this feels like an afterthought.

While the Andretti-Cadillac entry is the one grabbing all the headlines, others appear to be less vocal and exploring entry. The Andretti team is in a race against time, as I don’t believe their current entry’s chances increase the more time passes.

The Qualifier is a weekly newsletter that breaks down motorsport's business, money, and culture (mainly Formula 1). Subscribers include investors, decision-makers, and casual fans. So if you are not a subscriber, sign up and join 40,000+ others who receive it directly in their inbox each week — it’s free.

We’re taking on four sponsors for Q1 and Q2 2023. If you’d like to bring visibility to your brand, service, or product, or know someone that would be interested, click the button below.