All ten teams, Formula 1 and FIA Federation Internationale De Lautomobile have signed the Concorde Agreement for racing in a safe way. The contract will govern the F1 racing and FIA Formula 1 World Championship from year 2021 to 2015.
The Concorde Agreement will create an environment that is financially fairer and closes the gaps between teams. It will terminate the unfair revenue system. In the past top teams Mercedes, Ferrari and Red Bull had earned disproportionately more prize money.
The previous contract was revised because it implemented a system that had created a disparity in competitiveness down the grid. The low performing teams were at a disadvantage and had been demanding change for the last few years.
F1 chairman Chase Carey and FIA President Jean Todt after in depth brain storming, shared and officially finalised the details of the new agreement with the governing body of the F1 racing.
The F1 racing teams Ferrari, McLaren and Williams supported the agreement on 18th August. World Champion Mercedes showed some reservations but the issues were resolved and the agreement was signed by them. Other 6 teams then showed no hesitation in signing the contract.