As Formula 1 accelerates toward a new era, the finalization of the 2026 Concorde Agreement's governance section is front and center. With the commercial side already greenlit earlier this year, discussions between the FIA and Formula One Management (FOM) focus on the finer points of how the sport will be governed starting in 2026.

The Concorde Agreement: F1’s Backbone Explained

First established in 1981, the Concorde Agreement is the contract binding F1 teams, the FIA, and FOM, dictating everything from revenue sharing to sporting regulations. The agreement is typically split into two core areas:

• Commercial Rights: Covers image rights, TV broadcasts, and prize money distribution.
• Governance: Outlines how the sport is regulated, managed, and how decisions are made.

With the new version set to take effect in 2026, this marks the seventh iteration of the historic pact, ensuring F1’s continued growth and stability.

Key Sticking Points in 2026 Governance Talks

While negotiations have been amicable, several hurdles remain:

• FIA’s Financial Share: Recent comments from FIA president Mohammed Ben Sulayem highlight the governing body's desire for a fairer financial arrangement, given F1’s booming popularity and revenue growth.
• Event & Access Control: The FIA seeks stricter limits on VIP passes and improved communication around paddock access, emphasizing safety and operational efficiency.
• Brand Visibility: Calls for greater FIA branding during televised events and press conferences, reinforcing the championship's governance identity.
• Media Facilities: The relocation of media centers away from prime pitlane positions, often in favor of VIP hospitality, has sparked debate about media access and logistics.
• Personnel Deployment: The complexity of staffing additional events, especially for Sprint weekends, remains a logistical challenge under discussion.

Why These Changes Matter

The current Concorde Agreement supports a record-breaking 24-race calendar (with six Sprint events in 2025), maximizing FOM’s revenue streams through hosting fees, broadcasting, and hospitality. However, expanding the commercial side must be carefully balanced with the FIA’s ability to govern the sport safely and effectively—especially as team and event logistics become more demanding.

Negotiating a Fair Future for All Parties

Negotiations are progressing positively; both the FIA and FOM are motivated to resolve remaining issues before the year’s end. The FIA’s push for improved financial terms and operational safeguards is seen as a natural evolution as F1’s global reach grows. For deeper dives into F1’s business, team dynamics, and the latest paddock developments, check out the lets talk f1 blog.

Looking Ahead

As F1’s 2026 Concorde governance agreement nears completion, the outcomes will shape the sport’s landscape for years to come—impacting teams, officials, media, and fans alike. Stay tuned for updates as Formula 1’s powerbrokers race to the finish line on this pivotal deal.