F1 Breaking: Formula One Makes Decision On Andretti Bid

Formula One Management has made a decision on Andretti's bid to join the F1 grid.

Andretti Formula Racing's bid to join the F1 World Championship was deemed to lack the necessary value addition to the competition by Formula One Management. Despite fulfilling initial criteria, their application was ultimately not successful, as revealed in a comprehensive commercial review.

Key Takeaways:

• Competitive Concerns: The review highlighted doubts about Andretti's competitiveness, particularly due to their proposed association with General Motors (GM) which lacks an immediate power unit (PU) supply. This raises questions about their ability to challenge for podiums and wins, crucial for enhancing fan engagement and the Championship's value.
• Regulatory Challenges: Andretti's ambition to build cars for consecutive regulatory cycles (2025 and 2026) with differing requirements was seen as overly ambitious, especially given their status as a new constructor and their reliance on a compulsory PU supply from a competitor.
• Operational and Financial Implications: The addition of an 11th team was viewed as potentially burdensome for race promoters and existing teams, without a clear positive impact on the Championship's commercial results.

Andretti Press Image

The decision comes after a meticulous evaluation process initiated by the FIA's call for new entrants in March 2023. Andretti's application progressed through initial stages, satisfying key criteria set by the FIA. However, the subsequent commercial assessment by the Championship's Commercial Rights Holder revealed significant concerns.

The assessment considered various aspects, including the potential competitive nature of Andretti's entry, the impact of their power unit (PU) arrangements, fan engagement potential, stakeholder opinions, and the financial sustainability of adding another team. Despite the Andretti name's recognition among F1 fans, the analysis concluded that the brand would derive more value from F1 than it would contribute.

One of the core issues identified was the challenge associated with entering as a new PU manufacturer, a task even major automotive players have found daunting. While GM possesses the resources for such an endeavour, their involvement is not immediate, and their future partnership's success remains uncertain.

Furthermore, the operational impact on existing circuits and the broader Championship ecosystem was considered, with the conclusion that an 11th team would introduce more complications than benefits. The report states:

"Our assessment process has established that the presence of an 11th team would not, on its own, provide value to the Championship. The most significant way in which a new entrant would bring value is by being competitive. We do not believe that the Applicant would be a competitive participant.

"The need for any new team to take a compulsory power unit supply, potentially over a period of several seasons, would be damaging to the prestige and standing of the Championship.

"While the Andretti name carries some recognition for F1 fans, our research indicates that F1 would bring value to the Andretti brand rather than the other way around.

"The addition of an 11th team would place an operational burden on race promoters, would subject some of them to significant costs, and would reduce the technical, operational and commercial spaces of the other competitors.

"We were not able to identify any material expected positive effect on CRH financial results, as a key indicator of the pure commercial value of the Championship.

"On the basis of the application as it stands, we do not believe that the Applicant has shown that it would add value to the Championship. We conclude that the Applicant’s application to participate in the Championship should not be successful.

"We would look differently on an application for the entry of a team into the 2028 Championship with a GM power unit, either as a GM works team or as a GM customer team designing all allowable components in-house. In this case there would be additional factors to consider in respect of the value that the Applicant would bring to the Championship, in particular in respect of bringing a prestigious new OEM to the sport as a PU supplier."

This comes after news from Andretti that they have already begun building its Formula One car as well as taking on countless personnel on the project.

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