Concorde Agreement facts for kids

The Concorde Agreement is a very important contract in Formula One racing. It's an agreement between the Fédération Internationale de l'Automobile (FIA), which is the main rule-making body for motorsports, the Formula One teams, and the company that manages Formula One. This agreement explains how the teams will race and how the money from things like TV rights and prize money will be shared.

There have been six different Concorde Agreements since 1981. The details of these agreements were usually kept secret. However, a racing journalist named Forrest Bond published the 1997 agreement in 2006.

The main goals of the agreements are to keep Formula One professional and help it grow. A big part of the agreement is that teams must race in every event. This makes Formula One better for TV companies, who pay a lot of money to show the races. In return, the teams are guaranteed a share of the sport's earnings.

What Caused the First Agreement?

Before the Concorde Agreement, there were some big disagreements in Formula One. The Fédération Internationale du Sport Automobile (FISA) was in charge of making the rules. The race teams were represented by the Formula One Constructors Association (FOCA), led by Bernie Ecclestone.

FISA and FOCA often argued. Some teams felt that FISA was favoring bigger car manufacturers. Teams were also unhappy about how the money in Formula One was being shared. These arguments became known as the FISA-FOCA war.

The First Concorde Agreement (1981)

The FISA-FOCA war caused some races to be cancelled. Even Goodyear, a major tire supplier, threatened to stop providing tires. This would have been a disaster for Formula One.

To fix this, Bernie Ecclestone from FOCA arranged a meeting. Team managers and FISA representatives met at the FIA offices in the Place de la Concorde in Paris, France. They talked for 13 hours straight! On January 19, 1981, the first Concorde Agreement was signed. It was named after the famous plaza where they met.

The exact details of this contract are still mostly private. But we know a few key things:

• Teams had to race in every event. This was important for TV audiences.
• FOCA got the right to show Formula One races on TV. This was a very important part of the deal. FOCA then "leased" this right to a company owned by Bernie Ecclestone.
• The rules for racing would stay stable for a while.

The first Concorde Agreement ended on December 31, 1987.

Later Concorde Agreements

After the first agreement, several more were signed over the years. Each one helped to keep Formula One running smoothly and fairly for everyone involved.

Second Agreement (1987)

This agreement covered the 1987 to 1991 racing seasons.

Third Agreement (1992)

This agreement covered the 1992 to 1996 racing seasons.

Fourth Agreement (1997)

In 1995, the FIA decided to give the commercial rights of Formula One to a company called Formula One Administration for 14 years. Bernie Ecclestone's company would pay an annual fee for this. Some teams, like McLaren, Williams, and Tyrrell, didn't like this. They didn't sign the proposed Concorde Agreement. Ken Tyrrell was especially upset because he felt Ecclestone was giving rights to his own company, and that the secrecy of the agreement only helped Ecclestone.

On September 5, 1996, the new Concorde Agreement was signed by most teams. It was set to run from January 1, 1997, to 2002.

Fifth Agreement (1998)

The teams that didn't sign the 1997 agreement (McLaren, Williams, and Tyrrell) found themselves in a difficult spot. They lost some influence and money.

Eventually, everyone reached a compromise. On August 27, 1998, the 1998 Concorde Agreement was signed. This agreement lasted until December 31, 2007.

Sixth Agreement (2009)

Discussions for a new agreement began in 2004. Bernie Ecclestone offered a large payment to teams if they would renew the Concorde Agreement.

Some teams, like Ferrari, Red Bull, and Williams, signed extensions to the 1997 agreement.

In 2008, the ten Formula One teams created the Formula One Teams Association (FOTA). Their goal was to negotiate the terms of the new contract together. After some disagreements between FOTA and the FIA, a new Concorde Agreement was signed in 2009. All teams signed it except BMW Sauber, who were leaving Formula One. This new agreement continued the terms of the 1998 agreement and was set to run until December 31, 2012.

The agreement also included plans for limiting resources and set new rules for the 2010 season.

See also

In Spanish: Acuerdo de la Concordia para niños