For the past few weeks, there are been a lot of talks about the famous Concorde Agreement in Formula 1. What is it exactly and was it instaured?
It is a legal document which was signed for the first time in 1981 by all the F1 teams at the headquarters of the FIA located Place de la Concorde in Paris, France.
It basically gave the FIA a considerable financial income by ceding some of its power in exchange for a percentage of the television rights for F1 racing.
This ultra confidential document bonds all F1 teams entered in the World Championship to the FOM, the Formula One Management and the holder of the commercial rights. It states how F1 must be run and organised, the contractual obligations of the teams and it confirms a certain stability of the technical regulations.
More importantly, the document specifies in details how the television revenues must be shared between FOM and the teams. It states the percentage each team is allowed to get, based on its classification in the World Championship.
History
The F1 world changed dramatically with the introduction of the turbo engines by Renault in 1977. A powerful unit, it forced the other teams, using the veteran Cosworth DFV, to use imaginative technical solutions to keep up with it. Colin Chapman created the Lotus 79, the first F1 car to mmake use of ground effect.
Soon, the F1 teams were divided into two clans. The major car manufacturers (Ferrari, Renault and Alfa Romeo) which supported ther FIA, called the “legalists”, and the smaller teams that relied on the Cosworth engine (called the “assemblers” by Enzo Ferrari...) and led by no other than Bernie Ecclestone.
The two clashed on several occasions, leading to certain Grands Prix to be excluded from the FIA World Championship. Ecclestone threatened to oganise a rival series if the FIA would not accept to change the rules in order to allow the “assemblers” to keep up with the turbo teams.
Early 1981, the South African Grand Prix was held at Kyalami without the “legalists”. It was a flop. Ecclestone realised he needed the support of the big players, especially Ferrari...
The two clans had to find a solution. Intense negtiations started between Marco Piccinnini of Ferrari (representing the “legalists”) and Max Mosley, Ecclestone's right hand man.
After 11 days of hard work, the maiden Concorde Agreement was signed in Paris, March 4 1981, eleven days prior to the Grand Prix of Long Beach.
The Concorde Agreement has a specified duration, and has to be renewed on a regular basis.
It is a legal document which was signed for the first time in 1981 by all the F1 teams at the headquarters of the FIA located Place de la Concorde in Paris, France.
It basically gave the FIA a considerable financial income by ceding some of its power in exchange for a percentage of the television rights for F1 racing.
This ultra confidential document bonds all F1 teams entered in the World Championship to the FOM, the Formula One Management and the holder of the commercial rights. It states how F1 must be run and organised, the contractual obligations of the teams and it confirms a certain stability of the technical regulations.
More importantly, the document specifies in details how the television revenues must be shared between FOM and the teams. It states the percentage each team is allowed to get, based on its classification in the World Championship.
History
The F1 world changed dramatically with the introduction of the turbo engines by Renault in 1977. A powerful unit, it forced the other teams, using the veteran Cosworth DFV, to use imaginative technical solutions to keep up with it. Colin Chapman created the Lotus 79, the first F1 car to mmake use of ground effect.
Soon, the F1 teams were divided into two clans. The major car manufacturers (Ferrari, Renault and Alfa Romeo) which supported ther FIA, called the “legalists”, and the smaller teams that relied on the Cosworth engine (called the “assemblers” by Enzo Ferrari...) and led by no other than Bernie Ecclestone.
 |
| Start of the 1980 South-African Grand Prix, the two Renault turbo-engines are leading. (Photo: WRI2) |
The two clashed on several occasions, leading to certain Grands Prix to be excluded from the FIA World Championship. Ecclestone threatened to oganise a rival series if the FIA would not accept to change the rules in order to allow the “assemblers” to keep up with the turbo teams.
Early 1981, the South African Grand Prix was held at Kyalami without the “legalists”. It was a flop. Ecclestone realised he needed the support of the big players, especially Ferrari...
The two clans had to find a solution. Intense negtiations started between Marco Piccinnini of Ferrari (representing the “legalists”) and Max Mosley, Ecclestone's right hand man.
After 11 days of hard work, the maiden Concorde Agreement was signed in Paris, March 4 1981, eleven days prior to the Grand Prix of Long Beach.
The Concorde Agreement has a specified duration, and has to be renewed on a regular basis.