Formula 1 expected to demand major increment in new Concorde Agreement
According to some recent reports, it has been revealed that Formula 1 teams are going to ask for a major increment for the new Concorde Agreement, in terms of amounts they receive.
Before this agreement, 2009 introduced a new agreement, which clearly stated that the percentage of money each teams is supposed to receive will increase with each passing year. This clause was added in order to help stave off a threatened breakaway.
According to a recent announcement, it was revealed that teams are going to share US$ 658 million from the sport’s annual commercial revenue income for 2010. This means that the teams got a 21% increment, as compared to last year and a 164% increment as
compared to the year 2007.
However, the media revealed that the teams are willing to increase this share by at least 50-70%. Formula 1’s owners, Capital Partners Ltd CVC, are being pressurized by the teams and the Fédération Internationale de l’Automobile (FIA), as well as, Jean Todt,
revealed he wants the company to reduce the amounts the company is keeping currently.
These sorts of problems came forward in the past as well but back then each team had its own different criteria because of which there was no unity, reducing the impact of this cause.
However, it seems that all of the teams are united this time and since they are also backed by Jean Todt and the others, it seems that CVC might not be able to make a decision in its own favour this time.
Other than that, it is believed that the story will rumble on for a long time until any decision is made officially.
The 2011 Formula 1 season has featured some new rules and regulations introducing some new devices, which means that the amount of money each team uses for its development has also increased.
The FIA was hoping that racing would become more entertaining this year because of these new interesting rules but it seems that is not the case according to the results of the season opening race that took place in Australia a couple of weeks ago.
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