As a result of Cadillac and Andretti Global formally presenting their interest in entering motorsport’s highest level, Formula 1, FIA President Mohammed Ben Sulayem had a few words regarding an adverse reaction to the governing body’s recent actions.
“It is surprising that there has been any adverse reaction to the Cadillac and Andretti news,” Ben Sulayem posted on his Twitter account.
“The FIA has accepted entries from smaller and more successful organizations in recent years. We should encourage potential F1 entries from global manufacturers like GM and thoroughbred racers like Andretti and others.
The teams’ interest in growth markets adds diversity and broadens the appeal of F1.”
.@Cadillac @FollowAndretti @GM @FIA @F1 pic.twitter.com/ziVL91FCec
— Mohammed Ben Sulayem (@Ben_Sulayem) January 8, 2023
This Twitter post can be seen as a warning, but it also provides more insight into the ongoing battle that Andretti Global has been facing since last year.
Mohammed Ben Sulayem announced a new Expression of Interest process to bring new teams onto the grid.
After he announced this, General Motors and Andretti Global announced their intention to use this new system to get the Cadillac brand on the grid with at least one full-time American driver.
GM and the Andrettis still have a long battle ahead of them, as the process is not as clear cut as it seems. To understand why, you must first understand the structure behind the various entities that must grant permissions.
The FIA is an international organization that governs multiple forms of motorsports, including the World Rally Championship and the World Endurance Championship.
Formula One Group (F1) is a collection of companies responsible for promoting the sport and also owns all commercial rights through Liberty Media, which is the majority owner.
In short, if a country wants to host an F1 race, these people get all those sweet million dollar hosting checks.
The third controlling entity is the Concorde Agreement, which is a set of guidelines agreed by the FIA, the Formula One Group and the F1 teams.
The current Concorde Agreement runs until 2026, allowing a maximum of 26 drivers on the grid, meaning there is legally enough room for three additional two-car teams.
To prevent manufacturers from entering one year and simply leaving following failure, any new team must pay a $200 million entry fee, split evenly among the 10 existing teams.
The reason is to prevent prize money from diluting, although no new team can receive prize money during its first season.
Both GM and Andretti have agreed to pay the $200 million to join this super secret F1 club.
Formula 1 boss Stefano Domenicali declared last year that adding new teams to the grid was not a priority. Archyde.com spoke to a member of the team who paints an even bleaker picture.
Most teams fear diluting revenue. Not the prize money, mind, but the revenue. F1 is worth more than ever, and everyone gets a bigger piece of it.
The informant also mentions that the consensus among the grill is that the participation of General Motors and Cadillac is nothing more than an identification exercise.
An identification exercise to promote the brand
The car most closely related to F1 is the famous Mercedes-AMG One, and it’s so limited that few people will ever see one. The most successful team sells energy drinks.
Why shouldn’t Cadillac be allowed to promote the CT5-V Blackwing using F1 racing?
The only F1 boss to come out and support more teams on the grid is McLaren’s Zak Brown, an American, mind you.
Brown cited the growth of the sport as his number one reason and called out the other teams for being myopic.
Toto Wolff, the Mercedes-AMG Petronas F1 team principal, was clear regarding why he doesn’t want other teams on the grid.
According to Wolf, the value of F1 lies in its exclusivity, and the F1 brand would be diluted by adding more teams. Wolff has clearly forgotten the 1970s, when more than a dozen teams entered and had to pre-qualify each race weekend to see which teams might compete.
To us, this sounds like euro snobbery mixed with a bit of fear. Perhaps the European teams need another hiding place, like the ones Ford gave Ferrari at Le Mans in 1966, 67, 68, 69 and 1975.
public interest
According to Archyde.com, Ben Sulayem is exploring the expression of interest process and the public will receive an update soon.
Experts say the process will take time, and even if Andretti Cadillac’s newly formed team is approved, it will only be racing in 2026.
This year, the US will host three F1 races, more than any other country.
Formula 1 will happily accept accommodation fees from Texas, Miami and Nevada, but seems to be allergic to the idea of an all-American team joining the grid. A controversial metaphor.
Cadillac desperately needs the “Rio to Ring” as few young people buy its cars and its sales are in part because dealers pressure buyers with incentives and long-term credit.
