After years of failed attempts and opposition from teams, Andretti is well-placed to earn acceptance into the F1 grid.
As predicted across F1 news outlets, the FIA has officially accepted Andretti’s application to join Formula 1. The final step for Andretti is to reach an agreement in commercial discussions with FOM – Formula One Management.
Andretti made its first efforts to join F1 several years ago, making a series of bids to take over existing teams. During the 2021 season, the American outfit was extremely close to buying Sauber. However, a last-minute change in demands from the Swiss outfit ruined Andretti’s plans.
This setback incentivized Andretti to make their own F1 team – from scratch. The rising popularity of F1 and its teams (to be discussed later) meant their resources were best served by entering independently. For some time now, there has been significant backlash and criticism towards Andretti.
#F1 – FIA approves Andretti Formula Racing application after rigorous analysishttps://t.co/iVD8rKzrwn
— FIA (@fia) October 2, 2023
Opposition to Andretti
However, this opposition is not from media outlets or fans. The majority of Formula 1’s viewers are excited about the prospect of another team joining the grid. Instead, the sport’s existing outfits and their team principals have been the primary source of hostility.
To be clear, the likes of Toto Wolff and Christian Horner – regardless of their views – cannot stop Andretti’s F1 entry process. With that said, the volume of opposition expressed throughout the paddock has demonstrated the mountain Andretti is being forced to scale. Fundamentally, the grievance held by teams is financial.
During the pandemic, many teams suffered significant financial losses. More specifically, smaller outfits like Haas (whose monetary struggles are well-documented) were on the edge. Although Formula 1’s growing popularity has massively increased the value of teams, Andretti is perceived as a team that would shrink everyone else’s piece of the pie.
Objectively speaking, this is correct. Andretti would dilute the prize money of other teams. However, considering that – compared to previous years – teams are earning substantially more, this is hardly a concern. As mentioned by the likes of Guenther Steiner, every outfit currently in F1 is financially stable. Therefore, Andretti’s share of the prize money is far from an existential threat to the F1 field.
Negotiations with FOM
Perhaps more significantly than facing resistance from teams, the American outfit has been subject to opposition from F1 itself. Formula One Management – led by CEO Stefano Domeniclai – has been less than enthusiastic about an 11th team. Domenicali often questions the “value” a new entry would add to the sport.
This is significant because – in the upcoming negotiations Andretti will have with F1 – value will be an important criterion. In theory, Andretti can be rejected if it is decided they cannot bring enough additional value. Of course, this term is widely subjective. Many would argue that a new team with two new drivers, by default, meets this demand.
Unfortunately, this is unlikely to satisfy FOM’s hesitance. Up until recently, the consensus has been that Andretti’s entry bid was limited in its chance of success. Despite this, new reports indicate this is not the case.
Relating to the financial and commercial agreements outlined previously, it is possible for an agreement to be reached. Andretti and F1 – in theory – could reach a monetary deal that both find satisfactory. In previous months, there have been hints that F1 is willing to negotiate on this front.
Moreover, arguably the biggest asset for the American team could be FOM’s reluctance to enter a legal battle. Theoretically, under EU Law, the American outfit could escalate this issue if F1 does not accept their entry. Regardless of how this hypothetical outcome would play out, it would be an unflattering look for the sport.
Given the last two years, when controversies have become far too common, this scenario is to be avoided. An agreement is undoubtedly attainable and largely in the best interests of both parties. The upcoming weeks and months will show how talks between Andretti and Formula 1 unfold.
