The saga is officially over. On Monday (November 25), those responsible for Formula 1 announced that they had reached an agreement with the General Motors Group to allow eleven teams from the 2026 season. Behind the deployment of the GM factory is Andretti’s request, which It was accepted by the FIA at the start of 2023, but was delayed by the rights holders until 2028 amid much turmoil.
But a lot has happened since then. Andretti complained to Congress that the refusal violated antitrust law. Then the US Department of Justice opened an investigation that could have serious consequences for Formula 1 if good reasons were not presented against approval. In the worst case scenario, the US authorities could have imposed a fine worth billions. A rumored ban on Formula 1 appearing in the US is unlikely. That would cost a lot of jobs.
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Michael Andretti did not make any friends in Formula 1 with his salty behavior.
Michael Andretti out, Mario Andretti stays
Under the threat of politics, everyone involved now reached some compromises. One condition was that the Andretti name disappears almost entirely. After Michael Andretti’s rumbling performance, it was a red flag for many on the scene. And GM feared that the plan to enter Formula 1 would ultimately fail because of Andretti’s personality.
Dan Towriss and Mark Walter (TWG Global), then took Andretti Junior out of the firing line and agreed with Formula 1 that the racing team should launch under the banner of the GM Cadillac brand from 2026. This way everyone saves face. As the racing series wrote in its statement, many discussions have taken place since the beginning of the year which ultimately resulted in a positive outcome.
Of the Andretti family, only Mario Andretti is still on board. The 1978 Formula 1 world champion will assist the team as a consultant. “Formula 1 has always been my first love. And now, 70 years later, the Formula 1 paddock is still my happy place. The fact that I can still be involved in this stage – I’m really to pinch myself, “To make sure I am. ‘I’m not dreaming,’ explained the 84-year-old.
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Stefano Domenicali sees GM’s entry as a positive sign for Formula 1.
How much will the advance be?
Stefano Domenicali, CEO of Formula 1, was also happy with the deal. “The commitment of General Motors and Cadillac to this project is an important and positive testimony to the further development of our sport. We look forward to following the progress and growth of this newcomer. And we are sure that all parties will work well together and support the project.”
In order to make the increase a number of obstacles had to be removed. The racing series did not disclose how high the compensation payment (“dilution fee”) is. In the current Concorde deal, newcomers must hand over a total of $200 million equally to established teams.
In the new Formula 1 contract, which is still being worked on, this amount is to be increased and adjusted according to the current market situation. The amount the new racing team could earn in the following five years is then calculated. The amount corresponds to the new compensation payment. The existing teams were expecting a sum of $600 million to compensate for the smaller share of the pie and the loss of team value.
Cadillac probably won’t have to pay that much. It is expected to be somewhere in the mid $200 to $600 million range. The new distribution method for the prize money has not yet been clarified. Currently, the world champion receives 14.5 percent of the prize money pie after all bonus payments are deducted. For the tenth place it is seven percent. With eleven teams the key must change.
Until GM builds its own engine, the team could run with Honda powertrains.
