Will Formula 1 Add a New Team?

The FIA (Fédération Internationale de l'Automobile) formally approved Andretti Global's F1 entry application in October 2023, following an evaluation process that confirmed technical, financial, and sporting competence. This approval was a significant milestone — the FIA cannot be overruled by commercial parties on sporting licensing. However, Formula One Group (owned by Liberty Media) controls the commercial side, including the Concorde Agreement terms and the anti-dilution payment. The commercial dispute is the remaining barrier after sporting approval.

The current 10 F1 teams share commercial revenues (prize money, TV rights) under the Concorde Agreement. Adding an 11th team dilutes each existing team's share by approximately 9%. Existing teams collectively demand a one-time anti-dilution payment equivalent to their combined revenue loss over 5 years — estimated at $200-600M depending on the calculation methodology. Andretti/Cadillac considers the FIA's sporting approval sufficient and contests the commercial veto. The dispute has been the subject of US Congressional hearings (2024) and an EU competition investigation.

F1 introduces sweeping technical regulation changes for 2026, including new power unit specifications with increased electrical energy recovery (hybrid) and revised aerodynamic rules. A new team entering in 2026 would be disadvantaged by starting on equal-unknown footing with established teams learning the new regulations. However, the 2026 window also offers a genuine 'leveling' opportunity — historic regulation changes (like 2014's hybrid era) saw new team configurations outperform incumbents in the first season. Andretti's engineering team views 2026 as the ideal entry point.

General Motors' Cadillac brand joining as Andretti's manufacturer partner transforms the application from an independent team bid to a major OEM entry — the first US manufacturer in F1 since Haas (which uses Ferrari power units rather than a proprietary engine). US senators sent bipartisan letters to Formula One Group condemning the commercial veto. Liberty Media, F1's parent company, has US shareholders and an NYSE listing — making ongoing Congressional scrutiny a reputational pressure to accept Andretti. The political dynamics favor eventual entry.

Ferrari, Red Bull, Mercedes, McLaren, and other established teams have collectively opposed Andretti's entry in internal Concorde discussions. Their position: an 11th team dilutes prize money without necessarily improving the sporting product. Ferrari notably invoked its 'golden share' veto rights under the Concorde Agreement to challenge the entry. The commercial resistance is structural — each existing constructor has a financial incentive to minimize the team pool, regardless of sporting merit.

Formula 1's US audience has grown from 800,000 to 1.7 million average viewers between 2018-2025, driven by the 'Drive to Survive' Netflix series and the addition of Miami (2022) and Las Vegas (2023) Grands Prix. A US-based team (Andretti is based in Indianapolis, Cadillac is Detroit-native) would amplify domestic fan engagement and sponsorship from US corporate brands. Liberty Media's commercial interest in US growth aligns with Andretti's entry on this dimension.

“Bin Sulayem's formal approval letter to Andretti in October 2023 was unusually direct, calling the application 'suitable and eligible.' The FIA president has repeatedly and publicly criticized what he calls 'cartel behavior' by existing teams blocking the entry, and has committed to supporting Andretti's commercial rights case. The FIA-FOM tension over entry rights is ongoing.”

Source: FIA President Mohammed bin Sulayem

“Domenicali's public position is commercially neutral but in practice has slowed Andretti's entry by requiring a higher proof-of-competitiveness bar. His 'add value' framing implicitly accepts the existing teams' revenue protection argument. Privately, F1 insiders suggest Domenicali would accept an Andretti entry at the right commercial terms, including a dilution payment.”

Source: Stefano Domenicali (F1 CEO, Formula One Group)

“Michael Andretti confirmed in August 2025 that the team had signed contracts with key technical staff and was proceeding with 2026 car development despite unresolved commercial negotiations. The commitment of manufacturing resources suggests Andretti is betting on resolution — or planning to challenge the commercial veto legally if denied.”

Source: Michael Andretti (Team Principal)

“The DOJ confirmed a preliminary review of Formula One Group's commercial veto practices in September 2024, following Congressional letters from bipartisan US senators. While no formal charges have been filed, the investigation creates additional pressure on Liberty Media — a US-listed company — to avoid conduct that could attract formal antitrust action.”

Source: US Department of Justice (DOJ) Antitrust Division

“Wolff's softened public position — contrasting with earlier unambiguous opposition — was interpreted as recognizing the political inevitability of Andretti's entry. Mercedes' calculation may include a desire to have a customer engine deal with Andretti (GM/Cadillac are developing their own PU, but could license a base unit during the transition). Commercial co-interest is thawing the institutional resistance.”

Source: Toto Wolff (Mercedes Team Principal)