BREAKING: Formula 1 is safe, new Concorde Agreement signed!

Posted by Harvinder

August 1, 2009

The FIA has announced that the new Concorde Agreement has been signed by the motorsport governing body. The 2009 Concorde Agreement, like the agreements before it, is a contract between the FIA, Bernie Ecclestone and FOTA (Formula One Teams Association).

With the new agreement, which is valid till December 2012 signed, all parties have reached an understanding and the sport should remain as how it is for the next three seasons (starting from 2010), but of course there will be small changes here and there, but these changes would be agreed by the teams (via a voting system).

This means that the budget cap issue is no longer a problem. Official new rules will be revealed by the FIA soon. Regarding the budget restriction issue, the teams have agreed to reduce spending to levels that prevailed in the early 1990s, over an agreed period of time. More details to be revealed soon!

Continue reading for the official press release issued out by the FIA a while ago.

“Following approval by the World Motor Sport Council, late last night FIA President Max Mosley signed the 2009 Concorde Agreement, heralding a renewed period of stability for the FIA Formula One World Championship. The Concorde Agreement – a contract between the FIA, F1’s Commercial Rights-Holder and the participating Teams – sets out the basis on which the Teams participate in the Championship and share in its commercial success.

The WMSC has also approved a slightly revised set of stable Sporting and Technical Regulations (to apply from the 2010 Championship onwards), which have been agreed by the FIA and the Teams and which will be published shortly on the FIA’s website.

The new Concorde Agreement, which runs until 31 December 2012, provides for a continuation of the procedures in the 1998 Concorde Agreement, with decisions taken by working groups and commissions, upon which all teams have voting rights, before going to the WMSC for ratification.

In addition, as agreed in Paris on 24 June 2009, the Teams have entered into a resource restriction agreement, which aims to return expenditure to the levels that prevailed in the early 1990s. With the 2009 Concorde Agreement and the resource restriction agreement in place, the FIA looks forward to a period of stability and prosperity in the FIA Formula One World Championship.”