All ten F1 teams sign new Concorde Agreement

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All ten Formula One teams have signed a new Concorde Agreement, which will define the governance and commercial aspects of the sport from 2021 to 2025.

Ferrari, McLaren and Williams announced they had signed the deal on Tuesday before all ten teams F1 teams were confirmed on Wednesday.

A press release issued by Formula One said the new agreement "will reduce the financial and on track disparities between the teams, helping to level the playing field, creating closer racing on the track that our fans want to see more of."

The deal is made up of two parts, one that determines the governance of the sport and another that dictates the commercial aspects of each team's participation, such as the amount of prize money they are entitled to.

The previous Concorde Agreement was seen by many as unfair as the top teams earned a disproportionate amount of the prize money and the governance of the sport was centred around just six of the ten teams.

As little as two weeks ago, world champions Mercedes said it was not happy with some elements of the new deal but within the space of the last week it had decided to sign.

F1 CEO Chase Carey is confident the new Concorde Agreement, along with changes to the technical regulations in 2022 and a new budget cap in 2021, will make F1 more exciting for fans.

"We are pleased that by August we have been able to achieve agreement from all ten teams on the plans for the long term future of our sport," F1 CEO Chase Carey said. "All our fans want to see closer racing, wheel to wheel action and every team having a chance to get on the podium.

"The new Concorde Agreement, in conjunction with the regulations for 2022, will put in place the foundations to make this a reality and create an environment that is both financially fairer and closes the gaps between teams on the race track."

FIA president Jean Todt added: "The conclusion of the new Concorde Agreement between the FIA, Formula 1 and all ten of the current teams assures a stable future for the FIA Formula One World Championship. Over its seventy year history, Formula One has developed at a remarkable rate, pushing the boundaries of safety, technology and competition to the absolute limits, and today confirms that an exciting new chapter in that history is about to begin.

"During the unprecedented global challenges currently facing everyone around the world, I am proud of the way that all of Formula One's stakeholders have worked together over the past months for the best interests of the sport and the fans to agree the pathway for more sustainable, fair and exciting competition at the pinnacle of motor sport."