Stefano Domenicali claims F1 teams are being offered billions of dollars

F1's rising value is attracting new investment but the sport’s CEO is remaining cautious.

Stefano Domenicali, the CEO of Formula 1, has revealed that teams are now being offered “billions” as the sport continues to experience remarkable growth. 

The surge in popularity can be attributed to factors such as the success of the Netflix documentary series “Drive to Survive” and F1’s expanding reach in countries like the United States.

The increased interest in Formula 1 has resulted in major developments, including the entrance of German car giant Audi and the interest of the renowned motorsport name Andretti in establishing their own F1 team. 

Speaking to the official F1 website, Domenicali highlighted the remarkable change in the sport’s financial landscape.

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“In such a short time, the value of a team that enters F1 has skyrocketed. 

“Just a few years ago, when the new Concorde Agreement was signed, the talk was about the value of a team being around £200 million.

“At that time, it seemed unreachable as teams were sold for as little as £1,” Domenicali explained.

He further emphasised the magnitude of the transformation by stating: “Now the market is offering billions to teams, and they are refusing that. 

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“Can you imagine that? This perspective showcases the growth of our ecosystem and the strong business platform we are all working in.”

The FIA has also opened invitations for new teams and organizations to apply to join the F1 grid. 

However, despite the opportunity, Domenicali expressed reservations about expanding the number of teams.

“I don’t think so, that’s a personal opinion,” he stated. 

“When you have a good show, 20 cars are more than enough. The level of attention is tremendous when you have two teams fighting with two cars or two drivers. 

“If there are already two competitive teams, it’s incredible. So, with 20 cars and 10 competitive teams, it would be impressive.”

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Domenicali emphasised the need for prudence in considering new entrants, respecting those who have invested in F1 in recent times. 

While he acknowledged the interest from potential newcomers, he emphasized the importance of making the right decisions for the sport’s future.

“My ‘no’ is not against those who want to enter. I want to see the right ones, and I also need to respect those who have invested in F1 recently. We must be prudent and make the right decisions,” Domenicali concluded.