F1 is a mammoth organization that requires enormous sums of money to keep things functioning smoothly. The sport has amassed a massive following as well after its recent surge in popularity. The teams are reaping the benefits of this popularity surge as well with endorsement and better fan engagement.
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The popularity surge has definitely increased the value of everything related to F1. Even the cost that a team would need to bear to become a part of the grid has risen, or will rise according to the Haas F1 team boss Guenther Steiner. Each team’s stock has risen significantly and a new entrant would dilute the financial gains for the teams.
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Guenther Steiner gives his thoughts on F1’s Anti-Dilution Fee
Keeping the consequences in mind, an “Anti Dilution Fee” of $200 million was fixed in 2020, which would be divided among the teams. This is a precautionary measure set to mitigate the financial loss if such an occasion arises. However, a lot has changed since 2020 and especially in terms of the popularity of the sport.
The Haas boss is sure the amount will be significantly higher in the future to accommodate a new entrant. He said, “The entry fee was set a few years ago when the value of Formula 1 was different. When we signed the 2020 contract, the teams were still concerned with significantly less money than today.”
Formula One F1 – Azerbaijan Grand Prix – Baku City Circuit, Baku, Azerbaijan – June 11, 2022 Haas team principal Guenther Steiner during an interview before practice REUTERS/Hamad I Mohammed
Steiner added, “At some point it will be adjusted. I don’t think that’s the biggest problem.”
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The America-based team wouldn’t want more competition than they already struggled against the existing teams. However, the current season is kind on Haas compared to the last, in which they finished without scoring a single point.
The $200 million entry fee does not guarantee entry into the F1
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As the folks at Andretti Autosport would tell you, it’s not all about the money. Michael Andretti has been trying to enter the traveling circus for some time now, but with no success so far.
JEREZ DE LA FRONTERA, SPAIN – FEBRUARY 07: Mario Andretti, with his son Michael Andretti of the USA, look on as Marco Andretti, the son Michael, tests for Honda during Formula One testing at the Circuit De Jerez on February 7, 2007 in Jerez de la Frontera, Spain. (Photo by Mark Thompson/Getty Images)
The $20 million will not compensate for dividing the money between 11 teams in the long run. And that’s the biggest roadblock Andretti is facing, with the theme being that they “must add value”.
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As things stand, a lot of people on the grid and in the F1 hierarchy, including Domenicali, even feel that an 11th team on the grid is not a necessity.
