Andretti doesn't give up: that's why he doesn't want to give up his F1 dream

Just over a year has passed since the FIA, on February 2, 2023, decided to formally open the selection process for the entry of new teams into Formula 1. President Mohammed Ben Sulayem had never hidden his desire to see the grid expanded to new contenders and, after having evaluated the conditions together with the members of the governing body, started the application phase by publishing the eligibility criteria.

A decision also born from the fact that the current Concordia pact drawn up between Formula 1 and the existing teams effectively opened the door to the entry of new teams, which is why the Federation chose to proceed, underlining however that every interested party would have to receive approval not only from the governing body, but also from Liberty Media, holders of the commercial rights to the championship.

Several teams quickly submitted their requests, including Andretti, who had effectively put the most convincing offer on the table. In addition to good economic stability, which allows it to be active in various categories all over the world, the American team could also have counted on the support of GM through the Cadillac brand, a brand of undoubted interest for a Formula 1 that was pushing to expand to the United States.

Added to this is the support of other partners, including that of Guggenheim Partners, a financial investment services company which currently already contributes to the American team's programs in IndyCar and Formula E. It is no coincidence that this year, after the farewell of Avalanche, Guggenheim became the team's main sponsor in the electric category, further strengthening the bond between the two parties. The company would in fact have been ready to contribute towards the payment of the 200 million entry fee to be divided with the existing teams as a form of compensation.

Last October Andretti managed to pass the first approval phase, receiving the OK from the FIA, but only at the end of a rigorous process based on sporting, technical, financial and environmental sustainability criteria, in order to guarantee the series a candidate with good solidity. However, once the first obstacle was overcome, consensus was not reached from F1, which drew up a long series of reasons that led it to reject the request from the US team.

The fact that the FOM concluded its evaluation process with a “no” is not exactly a surprise. First of all, Formula 1 would like a name of importance on a global level, which is why it has left the doors open to 2028, when GM should debut with its own Power Unit. A concept expressed clearly by the leaders of the series, so much so that the note states that although “the Andretti name has a certain recognition for F1 fans, our research indicates that F1 would bring value to the Andretti brand rather than the opposite” .

Equally central was the firm opposition from the existing teams, who often implied that the entry of another team would have to guarantee concrete added value to the championship. The economic part undoubtedly played a key aspect, given that the revenues would have had to be redistributed in a different way with damage that should not be underestimated for the coffers of the teams already on the grid.

Andretti Cadillac logo

Photo by: Andretti Autosport

Added to this is the fact that, even for Formula 1, giving consent to an eleventh team in the short term would have meant posing further complications in view of the negotiations for the new Concorde Agreement, especially with the ten existing teams, which will have naturally always a priority right compared to new competitors. It is no mystery that, given the growing popularity of the series which is attracting partners and sponsors from all over the world, with an increase in the costs of TV rights and the fees for hosting a Grand Prix, the teams are rather reluctant to redistribute the proceeds . Indeed, from the current entry fee of 200 million they would like to move to a significantly higher figure, so as to discourage the addition of a new team without paying a considerable sum of money. At that point the quickest way to enter the grid could be to buy one of the existing teams, as Audi did with Sauber, but there would be a question of the actual value of the teams, which continues to grow.

In the press release released a few days ago, FOM also paid particular attention to the technical issue, underlining how Andretti would not be ready for a challenge of this magnitude, having never faced such large and complex projects. Liberty Media highlighted how, in the case of approval for 2025, the team would have to build two cars for two different regulatory cycles, given that in 2026 there will be another radical change. An aspect that Andretti has already denied, however, claiming that, given the length of the approval process, its focus had shifted to 2026, which is why resources would have already been diverted towards that project.

It should not be forgotten, in fact, that the deadline for registration had been set for mid-May 2023 and that, at least initially, the FIA ​​had indicated that a response would arrive by the end of June. However, the times have taken longer, both on the part of the Federation and of Formula 1, which is why in the meantime the American team has also begun to review its plans.

However, it is an interesting topic because, if the FOM does not consider Andretti ready for a challenge of this magnitude, on the other hand the FIA ​​had already taken these aspects into consideration when it gave the green light last October, underlining therefore a difference in terms of evaluations. A contrast that adds to other points of discussion already existing between the governing body and Formula 1.

Model in the wind tunnel in Toyota Cologne

Photo by: Andretti Autosport

Behind the scenes Andretti is actually continuing to push the project, also because processes and funding have already been put in place to expand staff and facilities. To support its position, the team also reiterated another of the points highlighted by Liberty Media in the press release, according to which the American company would have declined a meeting set for December 12th to discuss the request. In reality, Andretti did not reject the invitation, but simply was not aware of it.

While it sounds rather strange that there were no more meeting requests from the F1 side, this meant that the final assessment was only completed on partial assessments, with additional documents provided after initial approval by the Federation. For its part, Andretti would be willing to grant another meeting to visit the temporary offices in Silverstone, where a staff of 70 people currently works in addition to the group of 50 employees working in the United States headquarters.

Added to this are further reasons for conflict that Andretti would intend to refute, linked to both the technical and economic aspects. In the statement, Formula 1 underlined how “the need for each new team to accept a mandatory supply of Power Units, potentially for a period of several seasons, would be detrimental to the prestige and reputation of the championship”. Andretti had already signed an agreement for the supply of Power Units with Alpine (in fact Renault), which would certainly benefit from a customer team, both in terms of data collection and from an economic point of view, because it would guarantee greater income and the opportunity to expand into new markets by joining an American team.

Precisely on this last point, Formula 1 added that the collaboration with Renault before the arrival of GM would put the intellectual property and know-how of the French company at risk, given that there could be in some way a transfer of knowledge towards Cadillac. Putting aside the consideration that Renault has already given its consent, although there are regulations that still impose supply in case of necessity, this discussion could be applied to any team that decides to change supplier in the future, not only to Andretti and GM. In fact, manufacturers are already tending to take precautionary measures.

Photo by: Motorsport Images

Finally, there is one last contestable argument from Andretti, that of the extra costs for the promoters and organizers of the Grands Prix. “The addition of an eleventh team would place an operational burden on race organizers, subject some of them to significant costs and reduce the technical, operational and commercial spaces of other competitors,” FOM explained. Although it is true that there are some facilities that need modernization to adapt to the new demands of Formula 1, such as Zandvoort, which has already planned a renovation of the pit lane to guarantee greater space and comfort for the teams, on the other hand it is It is also true that the sport has always been ready for the addition of an eleventh team, given that it was a possibility already included in the current Concordia pact.

Many racetracks, in reality, have garages and extra space for hospitality and events accompanying the weekend, so much so that during the last world championship F1 even had the opportunity to organize a dedicated garage for the filming of the film starring Brad Pitt, with additional revenue for the FOM coffers. Furthermore, in 2016 the grid was already made up of eleven teams, which is why several facilities were and remain ready to welcome an additional team on the grid. FOM's objection to adding an eleventh team appears to be more commercial than practical.

Andretti has already contested two points in the long list of reasons with which Liberty Media decided to reject the request presented last year, but there are potentially other elements on which there could be a difference of opinion. Andretti has made it known that behind the scenes he is continuing to work at a “fast pace” on the project, hoping to be able to convince Formula 1 to change its mind. Clearly the American team has already made some economic investments, so much so that it had already planned an expansion plan to change factories, in order to accommodate more staff. Andretti had clearly already begun to move in this direction, but without approval from FOM, several aspects remained on standby.

However, while new Power United manufacturers such as GM would still be subject to FIA rules financially for up to three years prior to their entry, Andretti would have greater freedom to plan for the future and to continue its research and development programme, whether in 2026 or 2028, given that it is not currently bound by any agreement. The future remains cloudy, also because a new Concorde agreement will soon come into force which could raise the bar for future entry taxes. Entering 2028 realistically would mean paying a higher figure, given that existing teams have already hinted that this figure of 200 million will be revised upwards.