The Concorde Agreement

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The Concorde Agreement is one of those F1 terms that sounds obscure until you realise it sits underneath almost everything: who races, how the money is shared and how the championship stays stitched together.

The Concorde Agreement is the contract between Formula 1, the FIA and the teams that want to compete in the world championship. It is called the Concorde Agreement because the first version was discussed at the FIA’s offices on the Place de la Concorde in Paris. The first deal dates from 1981, which already tells you something important: this is not a decorative piece of F1 jargon, it is one of the sport’s foundational documents.

Its original job was to bring order after the FISA-FOCA war, the bruising political fight between the governing body and the teams over control of Formula 1. The agreement helped settle that struggle by creating a framework that all sides could live with, even if “live with” in Formula 1 rarely means “love”. A major part of that framework was stability. Teams committed to turning up and competing, and the championship gained something it badly needed: reliability for promoters, broadcasters and commercial partners.

What the Concorde Agreement does, in simple terms, is define the business and power structure of Formula 1. It is not the sporting regulations and it is not the technical rulebook. It does not tell you the exact front wing dimensions or how a penalty point is applied. Instead, it sits above that level and governs the relationship between the sport’s main stakeholders. That includes how revenues are distributed, the commercial terms of participation and the broader governance structure that keeps the championship functioning as a single series rather than a collection of very expensive separate interests.

That is why the Concorde Agreement matters so much in practice. Formula 1 is not just a race series. It is a global business with teams, investors, sponsors, circuits, broadcasters and manufacturers all pulling in slightly different directions. The Concorde Agreement is the contract that makes those interests coexist. When people talk about F1 politics, team leverage, prize money or the balance between the FIA and the commercial rights holder, they are usually circling around issues that sit inside or beside the Concorde framework.

A common misunderstanding is that the Concorde Agreement is one permanent document. It is not. There have been multiple versions over the years, and each one reflects the sport’s balance of power at that moment. Another misunderstanding is that it is fully public and easy to read. It is not. Concorde deals have long been treated as confidential, which is one reason they attract so much fascination. Everyone in Formula 1 knows they matter, but the exact wording is usually kept behind closed doors, which is a very on-brand way for F1 to handle something crucial.

The current era is slightly more layered than the shorthand term suggests. The 2021-2025 Concorde Agreement bound all ten teams through the end of 2025. Then the next cycle was split into a commercial agreement and a governance agreement. Formula 1 announced in March 2025 that all teams had signed the 2026 Concorde Commercial Agreement, and the FIA announced in December 2025 that the FIA, Formula 1 Group and all 11 teams had signed the Concorde Governance Agreement. Together, those deals form the ninth Concorde Agreement and secure the championship through 2030.

So when you hear “Concorde Agreement”, think of the contract that makes modern Formula 1 possible. It is the deal that turns a grid full of rivals into a functioning championship, sets the commercial peace terms and gives the sport a structure sturdy enough to survive its constant arguments. In F1, there is always another argument. The Concorde Agreement is what stops every one of them becoming a civil war.

FAQ

Q: Is the Concorde Agreement the same as the F1 rulebook?
A: No. The sporting and technical regulations set the rules of competition. The Concorde Agreement governs the commercial and governance relationship between the FIA, Formula 1 and the teams.

Q: Why is it called the Concorde Agreement?
A: Because the first version was discussed at the FIA’s offices on the Place de la Concorde in Paris.

Q: Do teams have to sign it to race in Formula 1?
A: In practical terms, yes. Formula 1 has stated that teams must be signed up to the Concorde Agreement in order to compete in the championship.

Q: Is the Concorde Agreement public?
A: Not fully. Concorde agreements have generally been treated as confidential, even though their broad purpose is well understood.

Q: What is the current Concorde Agreement period?
A: The current cycle runs through 2030, with the commercial agreement announced in March 2025 and the governance agreement signed in December 2025.

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