Lately, we’ve been seeing a lot of hype around Formula 1 extending its roster, but the big teams inside the sports were quick to try and shut that project down. However, it seems that Andretti’s partnership with GM through Cadillac could pave a smoother way.
When it comes to the world’s biggest circus, a lot of things revolve around backstage politics and finances. This happened to also be
the key reason a few teams were opposed to having a new contender on the grid.
Before getting into the finances, let’s talk about some F1 politics because we’ve seen such topics cause quite a stir within the paddock. One main reason an additional team would not be welcome is that it would dilute the power of the others.
Obviously, this is not something the big teams want to give away easily. This was properly showcased when the voting system regarding new rules was overhauled, with each team getting 1 vote for a total of 10, another 10 votes going to the FIA, and the final 10 to F1 itself.
How does this work? Well, in order to implement an immediate rule change, a “super majority” of 28 votes would be required, while a majority of 25 votes would be sufficient to implement a change in the next season. Obviously, the more teams there are on the grid, the harder it is for the big players who have engine supplier relationships to affect a change by influencing their customer teams.
Another key reason in favor of limiting the grid to 10 teams is how the money is divided between them. Another team coming in would just mean that everyone gets a smaller piece of the pie and nobody wants that to happen.
Mercedes boss Toto Wolff pointed this out well last summer, "Andretti is a great name but this is sport and this is business and we need to understand what is it that you can provide to the sport." Even with the $200 million dilution fund that Andretti would have to pay as an entry fee, teams are not convinced.
Toto continued by saying, "And if an OEM or a multinational group joins F1 and can demonstrate that they are going to spend X amount of dollars in activating, in marketing; that's obviously a totally different value proposition for all the other teams."
That is exactly what Andretti did through its partnership with GM and Cadillac, causing a change of heart for Wolff, who went on to say, "Cadillac and GM, that's a statement. Certainly, them joining forces with Andretti is definitely a positive."
Clearly, the Mercedes boss sees the value this alliance could bring to the sport, and this could potentially encourage other teams to support Andretti’s entry as well. The United States is one market that F1 has struggled to break into for many years now. And the involvement of Andretti, as well as GM, could be the final piece of the puzzle the sport needs to find success in the U.S.
the key reason a few teams were opposed to having a new contender on the grid.
Before getting into the finances, let’s talk about some F1 politics because we’ve seen such topics cause quite a stir within the paddock. One main reason an additional team would not be welcome is that it would dilute the power of the others.
Obviously, this is not something the big teams want to give away easily. This was properly showcased when the voting system regarding new rules was overhauled, with each team getting 1 vote for a total of 10, another 10 votes going to the FIA, and the final 10 to F1 itself.
How does this work? Well, in order to implement an immediate rule change, a “super majority” of 28 votes would be required, while a majority of 25 votes would be sufficient to implement a change in the next season. Obviously, the more teams there are on the grid, the harder it is for the big players who have engine supplier relationships to affect a change by influencing their customer teams.
Another key reason in favor of limiting the grid to 10 teams is how the money is divided between them. Another team coming in would just mean that everyone gets a smaller piece of the pie and nobody wants that to happen.
Mercedes boss Toto Wolff pointed this out well last summer, "Andretti is a great name but this is sport and this is business and we need to understand what is it that you can provide to the sport." Even with the $200 million dilution fund that Andretti would have to pay as an entry fee, teams are not convinced.
Toto continued by saying, "And if an OEM or a multinational group joins F1 and can demonstrate that they are going to spend X amount of dollars in activating, in marketing; that's obviously a totally different value proposition for all the other teams."
That is exactly what Andretti did through its partnership with GM and Cadillac, causing a change of heart for Wolff, who went on to say, "Cadillac and GM, that's a statement. Certainly, them joining forces with Andretti is definitely a positive."
Clearly, the Mercedes boss sees the value this alliance could bring to the sport, and this could potentially encourage other teams to support Andretti’s entry as well. The United States is one market that F1 has struggled to break into for many years now. And the involvement of Andretti, as well as GM, could be the final piece of the puzzle the sport needs to find success in the U.S.