Motorsport Week
  • Formula 1
    • 2025 Formula 1 Calendar
    • 2025 Formula 1 Standings
  • Formula E
    • 2025 Formula E Calendar
    • 2025 Formula E Standings
  • IndyCar
    • 2025 IndyCar Calendar
    • 2025 IndyCar Standings
  • WRC
    • 2025 WRC Standings
    • 2025 WRC Calendar
  • MotoGP
    • 2025 MotoGP Calendar
    • 2025 MotoGP Standings
    • Moto2
    • Moto3
  • WEC
    • 2025 WEC Calendar
  • IMSA
    • 2025 IMSA Calendar
  • World SBK
  • More
    • Formula 2
    • Formula 3
    • F1 Academy
    • Moto2
    • Moto3
    • World Superbikes
    • Technical Insight
    • Galleries
    • About/Contact
    • Privacy Policy
No Result
View All Result
  • Formula 1
    • 2025 Formula 1 Calendar
    • 2025 Formula 1 Standings
  • Formula E
    • 2025 Formula E Calendar
    • 2025 Formula E Standings
  • IndyCar
    • 2025 IndyCar Calendar
    • 2025 IndyCar Standings
  • WRC
    • 2025 WRC Standings
    • 2025 WRC Calendar
  • MotoGP
    • 2025 MotoGP Calendar
    • 2025 MotoGP Standings
    • Moto2
    • Moto3
  • WEC
    • 2025 WEC Calendar
  • IMSA
    • 2025 IMSA Calendar
  • World SBK
  • More
    • Formula 2
    • Formula 3
    • F1 Academy
    • Moto2
    • Moto3
    • World Superbikes
    • Technical Insight
    • Galleries
    • About/Contact
    • Privacy Policy
No Result
View All Result
Motorsport Week

Why three teams could cost Force India more than $100m

by
7 years ago
A A
0
Share on FacebookShare on Twitter

Force India's fall into administration has been well documented over the past week and its future still remains uncertain and is likely to do so for at least another few weeks as potential buyers put forward offers to save the team.

Whilst there's believed to be five interested parties, a decision by three current teams could see that figure drop and potentially cost Force India – or whatever it might be called in the future – upwards of $100 million (£77m).

Those three teams are McLaren, Renault and Williams.

Why so? Well under Formula 1's commercial deal, a document called the Concorde Agreement signed by all teams in 2009, governs what happens to a team should it fall into administration. It states that any team that has entered into administration and survived, i.e. been sold, can continue to compete in the sport, but only as a new entity, regardless of whether it keeps the same name, factory and staff.

RelatedPosts

Rahal has been competing in IndyCar for nearly two decades. Photo: Kevin Dejewski

RLL having to ‘unwind’ and ‘backtrack’ previous performance decisions

9 hours ago
Racing Bulls has released a new livery for the British GP

Racing Bulls showcases special livery for F1 British GP

11 hours ago

That would mean Force India would lose out on any prize money it is owed, roughly $70m (£53m), for finishing fourth last season. But due to the complex nature of how prize money is distributed, it would also lose out on many millions more over the next two seasons.

Teams must finish inside the top ten two years in a row to qualify for a Column 1 payment, which is around $25m (£19m). Force India could lose out on two of these payments if it is considered a new team – on a side note, Haas have only just qualified for this payment meaning it'll see a prize money increase of roughly 170% from $15m to $40m for the 2017 season (paid at the end of 2018).

This can however be bypassed if all current teams unanimously agree to allow Force India to continue operating after administration under the same entry, but this option has been blocked by McLaren, Renault and Williams.

Although Liberty Media are believed to be negotiating with the three teams in the hope of swaying them into voting in favour, they're not required to.

It's not clear if the three are motivated by the extra income they would see as a result of Force India losing out on prize money, as it would be redistributed amongst the remaining teams, or whether they fear that Mercedes are lining up to take control of the team, therefore strengthening its grip on the sport in a similar fashion to Ferrari/Sauber/Haas and Red Bull/Toro Rosso.

Whatever the reason, the impact could see interested buyers drop out of the Force India sale, risking its entire future and that of 400 employees.

It's worth noting that Sergio Perez's action against Force India are different to the winding up order brought by a supplier, the former coming a few days before Perez and Co's action. It's the winding up order that means Force India is in danger of losing out on prize money rather than the action brought by Perez, which by itself would have avoided this issue.

Share198Tweet124Share

Related Posts

Rahal has been competing in IndyCar for nearly two decades. Photo: Kevin Dejewski
IndyCar

RLL having to ‘unwind’ and ‘backtrack’ previous performance decisions

9 hours ago
Racing Bulls has released a new livery for the British GP
Formula 1

Racing Bulls showcases special livery for F1 British GP

11 hours ago
Tom Blomqvist contested the 2023 FIA WEC season in the LMP2 class for the Anglo-American team
IMSA

Tom Blomqvist returns to United Autosports amid IMSA-WEC clash

15 hours ago
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You can manage the subscriptions of this post.

Latest News

Rahal has been competing in IndyCar for nearly two decades. Photo: Kevin Dejewski

RLL having to ‘unwind’ and ‘backtrack’ previous performance decisions

July 1, 2025
Racing Bulls has released a new livery for the British GP

Racing Bulls showcases special livery for F1 British GP

July 1, 2025
Tom Blomqvist contested the 2023 FIA WEC season in the LMP2 class for the Anglo-American team

Tom Blomqvist returns to United Autosports amid IMSA-WEC clash

July 1, 2025
Motorsport Week

© 2024 Motorsport Media Services Ltd

Other Links

  • About & Contact
  • Privacy Policy
  • Motorsport Monday

Follow Us

No Result
View All Result
  • Login
  • Sign Up
  • Home
  • Formula 1
    • Latest News
    • 2025 F1 Calendar
    • 2025 F1 Championship Standings
  • Formula E
    • Latest News
    • 2025 FE Calendar
    • 2025 FE Championship Standings
  • MotoGP
    • Latest News
    • 2025 MotoGP Calendar
    • 2025 MotoGP Standings
    • Moto2
    • Moto3
    • World Superbikes
  • WRC
    • Latest News
    • 2025 WRC Calendar
    • 2025 WRC Standings
  • IndyCar
    • Latest News
    • 2025 IndyCar Calendar
    • 2025 IndyCar Standings
  • WEC
    • Latest News
    • 2025 WEC Calendar
  • Live Updates
  • Other
    • IMSA
    • Formula 2
    • Formula 3
    • F1 Academy
    • Moto2
    • Moto3
    • World Superbikes
  • Galleries
  • About/Contact
  • Privacy Policy

© 2024 Motorsport Media Services Ltd