Concorde Agreement - McLaren, Ferrari and Williams supports it, but why?

AndreasDavour · 9 Aug 2020, 14:26 (Ref:3994098)

I guess you have all heard that there's a new agreement in preparation. Before there have been an agreement in place where Ferrari has been the recipient of a "bonus payout" for being there longer than anyone else.

I started to wonder how come McLaren, Williams and Ferrari are now all ready to sign a new agreement, and those three happen to be the three oldest teams. Have that "bonus program" been expanded to three teams, I wonder?

Toto Wolf has been saying a lot about how his team, and their star driver, has not been given credit for what they have been providing. It makes me question what kind of credit is being bandied about?

I think it would be a massive error by Liberty Media to keep that grossly unfair "bonus payout" system, even if it included more teams.

ASCII Man · 9 Aug 2020, 14:32 (Ref:3994106)

Quote:

Originally Posted by AndreasDavour

Toto Wolf has been saying a lot about how his team, and their star driver, has not been given credit for what they have been providing. It makes me question what kind of credit is being bandied about?

They should be fined if what they've been providing is anything to go by.

AndreasDavour · 9 Aug 2020, 17:14 (Ref:3994215)

That is another can of worms, and a worthy conversation, probably in another thread though.

wnut · 10 Aug 2020, 02:14 (Ref:3994348)

Quote:

Originally Posted by AndreasDavour

I guess you have all heard that there's a new agreement in preparation. Before there have been an agreement in place where Ferrari has been the recipient of a "bonus payout" for being there longer than anyone else.

I started to wonder how come McLaren, Williams and Ferrari are now all ready to sign a new agreement, and those three happen to be the three oldest teams. Have that "bonus program" been expanded to three teams, I wonder?

Toto Wolf has been saying a lot about how his team, and their star driver, has not been given credit for what they have been providing. It makes me question what kind of credit is being bandied about?

I think it would be a massive error by Liberty Media to keep that grossly unfair "bonus payout" system, even if it included more teams.

I started to wonder how come McLaren, Williams and Ferrari are now all ready to sign a new agreement, and those three happen to be the three oldest teams. Have that "bonus program" been expanded to three teams, I wonder?

All those teams receive heritage payments under the current agreement.
I think they also got signing bonuses for signing early with Bernie before.

Basis of Machiavellian politics - Divide and rule!

There is a Formula 1 finance thread further on here somewhere where the payments are laid out if you are interested.

Moneyseeker · 10 Aug 2020, 07:51 (Ref:3994379)

Quote:

Originally Posted by wnut

I started to wonder how come McLaren, Williams and Ferrari are now all ready to sign a new agreement, and those three happen to be the three oldest teams. Have that "bonus program" been expanded to three teams, I wonder?

All those teams receive heritage payments under the current agreement.

I think they also got signing bonuses for signing early with Bernie before.

Basis of Machiavellian politics - Divide and rule!

There is a Formula 1 finance thread further on here somewhere where the payments are laid out if you are interested.

There shouldn't be any bonus points for heritage or brand. Prize money, which is what it is, should be awarded on results.

Claire is all for equality but has been happy to bank Williams bonus payments just for being Williams.

Sent from my SNE-LX1 using Tapatalk

wnut · 10 Aug 2020, 09:27 (Ref:3994399)

Quote:

Originally Posted by Moneyseeker

There shouldn't be any bonus points for heritage or brand. Prize money, which is what it is, should be awarded on results.

Claire is all for equality but has been happy to bank Williams bonus payments just for being Williams.

Sent from my SNE-LX1 using Tapatalk

Agree with you Moneyseeker.

F1's biggest problem - "Turkeys voting for Christmas"

They would all be better off without heritage payments (except maybe Ferrari) and signing bonuses, but they get divided here, and just lose all the way from there.

Moneyseeker · 14 Aug 2020, 09:29 (Ref:3995354)

Looking at Joe Sawards recent comments on the new agreement it appears that Ferrari will still get it's additional payment for being Ferrari...

Whilst Williams will lose their heritage payment just for being Williams, which means they will be entirely dependent on their results for the level of FOM payments they receive.

Ditto McLaren.

**Aysedasi** · 14 Aug 2020, 09:37 (Ref:3995358)

Quote:

Originally Posted by Moneyseeker

Looking at Joe Sawards recent comments on the new agreement it appears that Ferrari will still get it's additional payment for being Ferrari...

There can be only one question....... Why?

E.B · 18 Aug 2020, 15:04 (Ref:3996237)

McLaren first team to formally sign

https://www.formula1.com/en/latest/a...HHpAhSziE.html

https://www.autosport.com/f1/news/15...orde-agreement

ASCII Man · 18 Aug 2020, 15:09 (Ref:3996241)

Quote:

Originally Posted by Aysedasi

There can be only one question....... Why?

Because they're Ferrari! *fervent hand gesturing*

chillibowl · 18 Aug 2020, 15:27 (Ref:3996245)

Quote:

Originally Posted by ASCII Man

Because they're Ferrari! *fervent hand gesturing*

lol!

Ferrari is one of the most valuable brands/logos in the world, that FOM pays them extra to be a part of the championship no doubt improves the amount FOM can command from its TV and sponsorship contracts...and if that money is to be divided among the other teams then its reasonable to assume the other teams get more money because Ferrari is part of the championship then they would if Ferrari was not there (although i dont know where else Ferrari would go).

if they get extra money they get extra money...thats reasonable business imo.

for me it was always their 'veto' that i always found wrong and unsporting...so i wonder if that is gone?

also whats the early signing bonus amount? i know they dont share these sorts of details but im guessing its got to be at least a couple of million?

Mike Harte · 18 Aug 2020, 18:23 (Ref:3996280)

Quote:

Originally Posted by chillibowl

also whats the early signing bonus amount? i know they dont share these sorts of details but im guessing its got to be at least a couple of million?

I don't know, either. But from memory, it was paid to Ferrari when they broke ranks with the other teams thus greatly weakening the negotiating stand that FOCA was taking. Whether it was a "token of encouragement" (i.e a bribe) from Mr E or merely a show of appreciation for giving BE the upper hand is only something that those two parties know!

AnnoyedMoose · 19 Aug 2020, 11:40 (Ref:3996417)

All teams have now signed it.

seanyb505 · 19 Aug 2020, 11:43 (Ref:3996419)

So everyone has signed. Other than money I wonder if there are any other interesting details or updates?

**bjohnsonsmith** · 19 Aug 2020, 11:46 (Ref:3996420)

All ten teams have signed it.

https://www.motorsport.com/f1/news/a...paign=widget-1

Moneyseeker · 19 Aug 2020, 12:10 (Ref:3996425)

According to Deiter Rencken, the teams are not actually commited for 5 years, they can opt out on the 31st of March each year for the following year, presumably this opt out is to help get dome wavering teams like Renault and Haas to commit now, mbut have the ability to opt out subsequently if they have to.

wolfhound · 19 Aug 2020, 14:11 (Ref:3996455)

All ten teams have now signed the new concord agreement. So we now have long term stability in F1. I suspect details will come out over the next while as Liberty is stock market listed.

https://www.autosport.com/f1/news/15...orde-agreement

GT6 · 19 Aug 2020, 14:33 (Ref:3996464)

well i am sure one team will do very well out of it

chillibowl · 19 Aug 2020, 14:59 (Ref:3996469)

Quote:

Originally Posted by Mike Harte

I don't know, either. But from memory, it was paid to Ferrari when they broke ranks with the other teams thus greatly weakening the negotiating stand that FOCA was taking. Whether it was a "token of encouragement" (i.e a bribe) from Mr E or merely a show of appreciation for giving BE the upper hand is only something that those two parties know!

a 'token' sounds nicer.

neither here nor there, but i do think these things need to be made public. i know some think that its no one's business (along with the driver contracts), but for me transparency starts at the top.

Quote:

Originally Posted by Moneyseeker

According to Deiter Rencken, the teams are not actually commited for 5 years, they can opt out on the 31st of March each year for the following year, presumably this opt out is to help get dome wavering teams like Renault and Haas to commit now, mbut have the ability to opt out subsequently if they have to.

if correct, thats an interesting opt out. i can see this being a problem every year...well i can see Renault being a problem every year.

**chunterer** · 19 Aug 2020, 15:00 (Ref:3996470)

Quote:

Originally Posted by GT6

well i am sure one team will do very well out of it

Most of them are supposed to be better off out of this?

S griffin · 19 Aug 2020, 15:40 (Ref:3996486)

It’s really nothing, some teams questioning is was bound to happen, but it’s all sorted. Now we have nothing to worry about, just look forward to a safe future hopefully for F1

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