Concorde Agreement

The Concorde Agreement is a contract between the FIA, the ten Formula One teams and Formula One Administration which dictates the terms by which the teams compete in in races and take their share of the television revenues and prize money. There have in fact been five separate Concorde Agreements, all of whose terms are kept strictly secret: the first in 1981, others in 1987, 1992, and 1997, and the present agreement in 1998, which superseded the 1997 agreement and is due to expire at the end of 2007.

Related Topics:
FIA - Formula One - Teams - Formula One Administration - 1981 - 1987 - 1992 - 1997 - 1998 - 2007

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The effect of the agreements is to make the sport more professional than it originally was and to increase its commercial success. The most important factor in achieving this was the obligation of the teams to participate in every race, hence making the sport more reliable for broadcasters who were expected to invest heavily to acquire television broadcast rights. In return the teams were guaranteed a percentage of the sport's commercial revenue.

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