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Hub AI
Concorde Agreement AI simulator
(@Concorde Agreement_simulator)
Hub AI
Concorde Agreement AI simulator
(@Concorde Agreement_simulator)
Concorde Agreement
The Concorde Agreement is a contract between the Fédération Internationale de l'Automobile (FIA), the Formula One teams and the Formula One Group which dictates the terms by which the teams compete in races, and how the television revenues and prize money is shared. There have been nine versions of the Concorde Agreement, all of which terms were kept strictly secret: the first one was signed in 1981, with newer agreements being signed in 1987, 1992, 1997, 1998, 2009, 2013, and 2021; the current agreement was signed in 2025. The secrecy was broken by racing journalist Forrest Bond, when the 120-page 1997 Concorde Agreement was published at the end of 2005 by RaceFax.
The intent of the agreements is to encourage professionalism and to increase the commercial success of Formula One. Conditions of the agreement generally include the obligation of the teams to participate in every race, hence making the sport more reliable for broadcasters, who were expected to invest heavily to acquire television broadcast rights, and a percentage of the sport's commercial revenue in return for the teams.[citation needed]
In 1979, the Commission Sportive Internationale, a subordinate organization of the FIA, which was at that time the rule-making body for Formula One, was dissolved. It was replaced by the Fédération Internationale du Sport Automobile (FISA), which would serve the same function. FISA clashed repeatedly with the Formula One Constructors Association (FOCA), which represented the teams' interests. FOCA's chief executive at the time was Bernie Ecclestone and his legal advisor was Max Mosley, while the president of FISA was Jean Marie Balestre.[citation needed]
The two organizations' disagreements, which came to be known as the FISA–FOCA war, resulted in several races being cancelled, or declared non-valid (e.g. the 1980 Spanish Grand Prix). Goodyear threatened to withdraw entirely from Formula One, an event which would have been commercially disastrous for the sport, so Ecclestone organized a meeting with all team managers, Balestre, and other FISA representatives at the FIA headquarters in Place de la Concorde, Paris, France. On 19 January 1981, after thirteen straight hours of negotiation, all parties present signed the first Concorde Agreement, named after the square in which the negotiations took place.
The contract's terms remain largely confidential, though its known stipulations required the signatory teams to appear and compete in every race, and guaranteed their right to do so in order to assure the sport's newly acquired television public that they would have a race to watch. Also, perhaps most importantly, the agreement granted FOCA the right to televise Formula One races — this right was "leased" to Formula One Promotions and Administration, a company established and owned by Bernie Ecclestone. Another important element was the stability in rules, described as protecting the teams from "the whims of the governing body".
It expired on 31 December 1987.[citation needed]
The second Concorde Agreement governed the 1987 to 1991 seasons. When the second Concorde Agreement was agreed in 1987, Ecclestone ceased being a team owner and established Formula One Promotions and Administration (FOPA) to manage TV rights for the teams. FOPA would later become known as Formula One Management (FOM). FOPA received 49% of TV revenues: 1% went to the teams, and 50% to the FIA. FOPA also received all the fees paid by promoters and paid prize money to the teams.
The third Concorde Agreement covered the 1992 to 1996 seasons. Ecclestone required the approval of Jean-Marie Balestre and the FIA to transfer Formula One television rights to FOCA. He arranged that his business partner Paddy McNally, who was proficient in French, should negotiate the agreement with Balestre, and eventually they came to terms. Balestre was unaware of Ecclestone's aggressive expansion and the value of the television rights. Max Mosley became FIA president shortly after in 1993.
Concorde Agreement
The Concorde Agreement is a contract between the Fédération Internationale de l'Automobile (FIA), the Formula One teams and the Formula One Group which dictates the terms by which the teams compete in races, and how the television revenues and prize money is shared. There have been nine versions of the Concorde Agreement, all of which terms were kept strictly secret: the first one was signed in 1981, with newer agreements being signed in 1987, 1992, 1997, 1998, 2009, 2013, and 2021; the current agreement was signed in 2025. The secrecy was broken by racing journalist Forrest Bond, when the 120-page 1997 Concorde Agreement was published at the end of 2005 by RaceFax.
The intent of the agreements is to encourage professionalism and to increase the commercial success of Formula One. Conditions of the agreement generally include the obligation of the teams to participate in every race, hence making the sport more reliable for broadcasters, who were expected to invest heavily to acquire television broadcast rights, and a percentage of the sport's commercial revenue in return for the teams.[citation needed]
In 1979, the Commission Sportive Internationale, a subordinate organization of the FIA, which was at that time the rule-making body for Formula One, was dissolved. It was replaced by the Fédération Internationale du Sport Automobile (FISA), which would serve the same function. FISA clashed repeatedly with the Formula One Constructors Association (FOCA), which represented the teams' interests. FOCA's chief executive at the time was Bernie Ecclestone and his legal advisor was Max Mosley, while the president of FISA was Jean Marie Balestre.[citation needed]
The two organizations' disagreements, which came to be known as the FISA–FOCA war, resulted in several races being cancelled, or declared non-valid (e.g. the 1980 Spanish Grand Prix). Goodyear threatened to withdraw entirely from Formula One, an event which would have been commercially disastrous for the sport, so Ecclestone organized a meeting with all team managers, Balestre, and other FISA representatives at the FIA headquarters in Place de la Concorde, Paris, France. On 19 January 1981, after thirteen straight hours of negotiation, all parties present signed the first Concorde Agreement, named after the square in which the negotiations took place.
The contract's terms remain largely confidential, though its known stipulations required the signatory teams to appear and compete in every race, and guaranteed their right to do so in order to assure the sport's newly acquired television public that they would have a race to watch. Also, perhaps most importantly, the agreement granted FOCA the right to televise Formula One races — this right was "leased" to Formula One Promotions and Administration, a company established and owned by Bernie Ecclestone. Another important element was the stability in rules, described as protecting the teams from "the whims of the governing body".
It expired on 31 December 1987.[citation needed]
The second Concorde Agreement governed the 1987 to 1991 seasons. When the second Concorde Agreement was agreed in 1987, Ecclestone ceased being a team owner and established Formula One Promotions and Administration (FOPA) to manage TV rights for the teams. FOPA would later become known as Formula One Management (FOM). FOPA received 49% of TV revenues: 1% went to the teams, and 50% to the FIA. FOPA also received all the fees paid by promoters and paid prize money to the teams.
The third Concorde Agreement covered the 1992 to 1996 seasons. Ecclestone required the approval of Jean-Marie Balestre and the FIA to transfer Formula One television rights to FOCA. He arranged that his business partner Paddy McNally, who was proficient in French, should negotiate the agreement with Balestre, and eventually they came to terms. Balestre was unaware of Ecclestone's aggressive expansion and the value of the television rights. Max Mosley became FIA president shortly after in 1993.