FEBRUARY 2, 2023

FIA Officially opens the door to new F1 teams

Much against the wishes of Formula 1 and the majority of the competing teams, the FIA has officially opened the application process to identify prospective teams seeking to participate at a competitive level in the FIA Formula One World Championship.

Much against the wishes of Formula 1 and the majority of the competing teams, the FIA has officially opened the application process to identify prospective teams seeking to participate at a competitive level in the FIA Formula One World Championship.

The announcement was made on Thursday in Europe, less than one month after the Federation president, Mohammed Ben Sulayem stated his intention of opening a process of declaration of interest for prospective new teams. A statement that prompted a very cold reaction from Formula 1 and was met with complete silence from the ten existing teams.

Now, in announcing the process to welcome new teams into Formula One, Ben Sulayem explained that, “the growth and appeal of the FIA Formula One World Championship is at unprecedented levels. The FIA believes the conditions are right for interested parties, which meet the selection criteria, to express a formal interest in entering the Championship.”

The Emitati pointed out that, “for the first time ever, as part of the selection conditions, we are requesting that candidates set out how they would meet the FIA’s sustainability benchmarks and how they would make a positive societal impact through sport”, adding that this process “is a logical extension of the positive acceptance of the FIA’s 2026 F1 Power Unit Regulations from engine manufacturers which has attracted Audi to Formula 1 and created interest among other potential entrants.”

The Federation also made public what are the different criteria that will eventually lead to the selection of new teams, as in the application letter they have to detail the following items:

(1) the technical ability and resources of the team;

(2) the ability of the team to raise and maintain sufficient funding to meet its financial obligations and to allow participation in the Championship at a competitive level;

(3) the ability of the team to meet and comply with its obligations under the F1 Sporting, Technical, and Financial Regulations;

(4) a detailed business plan (including financial projections) for the first 5 years of the project;

(5) the team’s experience and capabilities in the automobile and/or motorsport sector (including technical experience, racing experience, facilities, equipment, and engineering resources) and relevant staff headcount/ experience;

(6) whether the team and all individuals proposing to participate in the ownership,control, or management of the team are fit and proper persons;

(7) considerations of sustainability, EDI (Equality, Diversity, and Inclusion), and societal benefit; and

(8) the FIA’s assessment of the value that the candidate may bring to the Championship, including consideration of its reputation and integrity.

And while Ben Sulayem has made it clear that it’s up to the Federation to accept new teams into Formula One, the application process also explains that, “the F1 Commercial Rights Holder may also impose additional selection criteria/conditions.”

As it’s normal in this kind of processes, the FIA stated that, “all applicants (and all individuals proposing to participate in the ownership, control, or management of the team) will be required to undergo thorough due diligence checks as part of the formal application process.”

One thing the FIA felt the need to make it clear is that only for 2025 there will be new vacancies in the Formula One field, as the process that is now starting will not end before the beginning of this year’s World Champion. In fact, the FIA wrote that it “anticipates that the deadline for submission of formal applications will be 30 April 2023, leading to a decision by the FIA on any application(s) by 30 June 2023” before clarifying that, “for the avoidance of doubt, no new applicant has an automatic right of entry to the Championship and the maximum number of teams competing in the Championship up to and including the 2025 season is capped at 12. Existing F1 teams will be given priority over new applicants. In the event that no applicant is considered suitable by the FIA and/or by the F1 Commercial Rights Holder, no new F1 team(s) will be selected.”

The ball is now in Formula 1’s side with the expected reaction from Stefano Domenicali’s team being another step in the battle for control of the sport that was reignited as soon as Ben Sulayem took control of the FIA.

Much against the wishes of Formula 1 and the majority of the competing teams, the FIA has officially opened the application process to identify prospective teams seeking to participate at a competitive level in the FIA Formula One World Championship.

The announcement was made on Thursday in Europe, less than one month after the Federation president, Mohammed Ben Sulayem stated his intention of opening a process of declaration of interest for prospective new teams. A statement that prompted a very cold reaction from Formula 1 and was met with complete silence from the ten existing teams.

Now, in announcing the process to welcome new teams into Formula One, Ben Sulayem explained that, “the growth and appeal of the FIA Formula One World Championship is at unprecedented levels. The FIA believes the conditions are right for interested parties, which meet the selection criteria, to express a formal interest in entering the Championship.”

The Emitati pointed out that, “for the first time ever, as part of the selection conditions, we are requesting that candidates set out how they would meet the FIA’s sustainability benchmarks and how they would make a positive societal impact through sport”, adding that this process “is a logical extension of the positive acceptance of the FIA’s 2026 F1 Power Unit Regulations from engine manufacturers which has attracted Audi to Formula 1 and created interest among other potential entrants.”

The Federation also made public what are the different criteria that will eventually lead to the selection of new teams, as in the application letter they have to detail the following items:

(1) the technical ability and resources of the team;

(2) the ability of the team to raise and maintain sufficient funding to meet its financial obligations and to allow participation in the Championship at a competitive level;

(3) the ability of the team to meet and comply with its obligations under the F1 Sporting, Technical, and Financial Regulations;

(4) a detailed business plan (including financial projections) for the first 5 years of the project;

(5) the team’s experience and capabilities in the automobile and/or motorsport sector (including technical experience, racing experience, facilities, equipment, and engineering resources) and relevant staff headcount/ experience;

(6) whether the team and all individuals proposing to participate in the ownership,control, or management of the team are fit and proper persons;

(7) considerations of sustainability, EDI (Equality, Diversity, and Inclusion), and societal benefit; and

(8) the FIA’s assessment of the value that the candidate may bring to the Championship, including consideration of its reputation and integrity.

And while Ben Sulayem has made it clear that it’s up to the Federation to accept new teams into Formula One, the application process also explains that, “the F1 Commercial Rights Holder may also impose additional selection criteria/conditions.”

As it’s normal in this kind of processes, the FIA stated that, “all applicants (and all individuals proposing to participate in the ownership, control, or management of the team) will be required to undergo thorough due diligence checks as part of the formal application process.”

One thing the FIA felt the need to make it clear is that only for 2025 there will be new vacancies in the Formula One field, as the process that is now starting will not end before the beginning of this year’s World Champion. In fact, the FIA wrote that it “anticipates that the deadline for submission of formal applications will be 30 April 2023, leading to a decision by the FIA on any application(s) by 30 June 2023” before clarifying that, “for the avoidance of doubt, no new applicant has an automatic right of entry to the Championship and the maximum number of teams competing in the Championship up to and including the 2025 season is capped at 12. Existing F1 teams will be given priority over new applicants. In the event that no applicant is considered suitable by the FIA and/or by the F1 Commercial Rights Holder, no new F1 team(s) will be selected.”

The ball is now in Formula 1’s side with the expected reaction from Stefano Domenicali’s team being another step in the battle for control of the sport that was reignited as soon as Ben Sulayem took control of the FIA.