What F1's new Governance Concorde Agreement means for the series

The governance agreement forms the second part of the Formula 1 Concorde Agreement, sitting alongside the commercial deal that was signed ahead of March's Australian Grand Prix and will cover the period between 2026 to 2030.

Governing body the FIA and FOM jointly announced the agreement in the margins of this week's FIA General Assemblies in the Uzbekistan capital of Tashkent, which includes Friday's FIA Awards and Mohammed Ben Sulayem's re-election as president.

The delay between the two signatures shows the governance deal, which unlike the commercial deal, also involves the FIA, took its time to get the details right. That's because it defines critical elements of how the championship is run, including the voting structure of F1 Commission meetings, entry fees paid by the teams to the FIA, the remit of the governing body and other logistics.

F1 CEO Stefano Domenicali said: “This agreement ensures that Formula 1 is in the best possible position to continue to grow around the world. I want to thank the president of the FIA, Mohammed Ben Sulayem, and all the teams for the collaboration and determination to achieve the best results for the entire sport in our discussions."

Motorsport.com understands that as part of the deal there has been a change to the voting process in F1 Commissions, with fewer team votes now needed to reach a majority, effectively giving both the FIA and FOM a bigger voting weight to push through regulatory changes.

With the way votes are weighted, from 2026, the number of votes needed for a normal majority in F1 Commission meetings has been reduced from six to four out of 11 teams, plus FOM and the FIA, while a super majority will now take six instead of eight. It is hoped the move gives the series a more stable platform to make difficult changes when necessary.

FOM to support FIA plans to upgrade its race operations

Azerbaijan Grand Prix

Photo by: Ozan Kose / AFP via Getty Images

It is also understood that both FOM and the 11 teams will collectively pay the governing body more money through a restructuring of the F1 entry fees, which the FIA is expected to re-invest in the governance side of the championship, including stewarding, marshalling and other services.

Until now, teams were charged an entry fee which, alongside a flat fee, was based on the number of points earned in the previous season. It meant an extremely successful squad, like Red Bull in 2023, was charged a disproportionate amount of money to enter the following campaign, while teams at the back of the grid on very few points were contributing relatively little. From now on, squads are understood to be charged a fee based on their constructors' position on a sliding scale from top to bottom. 

The change in structure is expected to increase the collective fee teams are paying the FIA by roughly $15m per year, with the midfield teams in particular seeing their share increase by several million dollars. This format brings it in line with the way prize money is paid out under the commercial agreements, on a scale worth $9m per midfield position. It is also expected that the continued commercial growth F1 is projected to have will offset the increased entry fees for the affected teams.

Amid calls from competitors for the FIA to invest in professionalising stewarding and other services it provides to the series, it is understood the governing body presented a plan to improve its F1 operation and the additional costs that would involve, which was supported by FOM.

"We are generally happy to share the cake in a more structured and fairer way, but if we do that then we want to make sure it goes to professionalisation, improving services, and so on," one senior team source recently told Motorsport.com.

President Ben Sulayem did promise the additional funds would be used by the governing body to make its F1 operations more robust.

Mohammed ben Sulayem, FIA President and Stefano Domenicali, CEO of the Formula One Group on the grid

Photo by: Zak Mauger / LAT Images via Getty Images

"This agreement allows us to continue modernising our regulatory, technological, and operational capabilities, including supporting our race directors, officials, and the thousands of volunteers whose expertise underpin every race," Ben Sulayem was quoted on Friday. "We are ensuring that Formula 1 remains at the forefront of technological innovation, setting new standards in global sport."

It is also understood the new deal will improve the FIA's general visibility in the paddock. Meanwhile, there is a provision in the all-new Section A of the 2026 regulations for teams to feature the FIA logo on the nose of each car.

"Each F1 Car must bear the FIA logo, in either blue or white, with a height of at least 75mm," says Article A2.3.4 of the general regulatory provisions. "This logo must be positioned on the top of the nose or on either side of the nose and be visible from the side of the car."

Sources have suggested that a more favourable revenue share could pave the way for F1 to increase the number of sprint races and help the FIA cover its side of the logistics involved.

Until now, Ben Sulayem had been reluctant to expand beyond six sprints per season, citing the impact on FIA personnel workload and finances. But as previously reported, FOM is understood to be keen to hit double digits as soon as the 2027 season, as sprint weekends have had a net positive impact on race promoters and the commercial side of the business.