Start of the race during the Hungarian GP, Budapest 20-23 July 2023 at the Hungaroring, Formula 1 World championship 2023.

Rumor: F1 teams stand to get $120 million each with expansion

The ten existing F1 teams each stand to reap a $120 million infusion of money as the Series is on the cusp of expanding to 12 teams.

–by Mark Cipolloni–

As we have reported ad nauseam, Michael Andretti has shown heavy interest in starting an F1 team via a partnership with Cadillac, while the U.K. racing group Hitech is also seen as a major player for expansion.

Recent comments from FIA president Mohammed Ben Sulayem suggest a resolution will be reached soon. “I think the final decision will be made within four-to-six weeks,” said Ben Sulayem, whose organization governs F1 and other racing series.

The current 10 F1 teams could stand to split more than $1 billion if two expansion teams are approved. The FIA originally set an expansion fee of $200 million per team, but F1’s recent popularity growth could push that figure past $600 million.

This money is meant to offset the reduction in prize money each of the existing 10 teams will receive because it would then have to be split 12 ways instead of 10.

However, a new Concorde Agreement in 2026 could see the prize money payout from Liberty Media, owners of Formula 1, climb.

Last month, F1 CEO Stefano Domenicali pushed back on the need to expand beyond 10 teams and said takeover offers surpassing $1 billion were being turned down.

Adding two new teams would take the F1 grid to 24 cars. The maximum number of cars allowed by the FIA for an F1 race is 26.

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