The Concorde Agreement is a document that sets out the terms and conditions of participation in Formula One racing. The agreement was first signed in 1981 and has been updated and amended several times since then.
The Concorde Agreement is essentially a contract between the Formula One teams and the sport`s governing body, the FIA. It covers a wide range of topics, including the distribution of revenue, technical and sporting regulations, the calendar of events, and the governance structure of the sport.
One of the key elements of the Concorde Agreement is revenue sharing. Under the agreement, a portion of the sport`s revenue is distributed among the teams based on their performance and participation in the championship. This revenue sharing system is designed to ensure that smaller teams have a chance to compete on a level playing field with the larger, more established teams.
The Concorde Agreement also sets out technical and sporting regulations that govern how the teams design, build, and race their cars. These regulations are designed to ensure that the cars are safe, competitive, and adhere to a common set of standards.
Another important aspect of the Concorde Agreement is the governance structure of the sport. The agreement establishes the FIA as the governing body of Formula One, with responsibility for setting the rules and regulations of the sport. However, the agreement also gives the teams a voice in the decision-making process through the Formula One Commission, which is made up of representatives from the teams, the FIA, and the commercial rights holder of the sport.
Overall, the Concorde Agreement is an important document that helps to define the terms and conditions of participation in Formula One racing. It provides a framework for revenue sharing, technical and sporting regulations, and the governance structure of the sport. By ensuring that all participants are working from the same playbook, the Concorde Agreement helps to promote a fair and competitive environment for Formula One racing.