Following the season-closing Abu Dhabi Grand Prix, Formula One and the FIA confirmed that the Concorde Governance Agreement was signed for the 2026 season. F1Technical’s senior writer Balazs Szabo reveals why it was important for the sport to tick that box before the preparation for the coming season kicks off.
The Concorde Agreement is the commercial contract between the Formula One Group, the Formula One teams and the Federation Internationale de l’Automobile that dictates the terms by which the teams compete in races and how the television revenues and prize money are divided.
The first Concorde Agreement was signed in 1981, named after the plaza in Paris where the discussions took place.
In fact, the Concorde Agreement consists of two documents – one for the commercial matters and another one for the governance side of the sport.
The current Concorde Agreement had been due to expire at the end of the 2025. Ahead of this year’s Australian Grand Prix, Formula 1 had announced that all of the sport’s teams signed the 2026 Concorde Commercial Agreement.
However, the agreement from March only covered the commercial matters while the FIA still needed to finalise governance terms of the new deal.
After the season-closing Abu Dhabi Grand Prix, Formula 1 and the Fédération Internationale de l’Automobile confirmed that the 2026 Concorde Governance Agreement has been signed by both parties and all eleven Formula 1 teams which acted as an extension to the Commercial Concorde Agreement had been signed by all the teams and Formula 1 in March,
“The Concorde Agreement ensures that the key stakeholders in the sport, Formula 1 as the Commercial Rights Holder, the FIA as the governing body of world motorsport, and the F1 teams, are fully aligned on the fundamental commercial and governance structures that will underpin the next five years of the sport as it heads into a new era in 2026 with exciting and innovative regulations for the power unit and cars,” read the sport’s statement.
Circling the globe through the eyes of Lando’s title charge! 🌍
Here’s his journey to the Drivers’ Championship in 2025, visualised race-by-race 📊#F1 pic.twitter.com/Lyff3SblPG
— Formula 1 (@F1) December 22, 2025
Why was the new agreement key to the sport’s future?
The new commercial agreement that includes a series of changes to the financial matters and is expected to generate more income for the FIA, should enable the governing body to invest further in improved race regulation, race direction, stewarding, and technical expertise for the benefit of the Formula One.
The tweaks to the previous governance agreement are expected to help the the sport continue “to evolve, providing exciting technological innovation and sporting action for fans, broadcasters and partners, all within a stable and structured regulatory framework.
“Combined with record viewership growth, a dynamic race calendar, and increasing engagement from younger audiences, the FIA Formula 1 World Championship enters this next chapter with unprecedented momentum.”
Speaking of the announcement, Formula One’ Preseident and CEO Stefano Domenicali stressed that the new agreement would help the sport to “continue to grow around the world.”
“Today is an important day for Formula 1. As we celebrate seventy-five years of this incredible sport, we are proud to write the next chapter in our long and amazing history.
“This agreement ensures that Formula 1 is in the best possible position to continue to grow around the world. I want to thank the President of the FIA, Mohammed Ben Sulayem, and all the teams for the collaboration and determination to achieve the best results for the entire sport in our discussions.
“We have a huge amount to be proud of, but we also are focussed on the opportunities and exciting potential for Formula 1 in the years ahead,” the Italian conlcuded.
Explaining the new agreement, FIA’s President, Mohammed Ben Sulayem shared further details about the importance of the document, disclosing that it will enable the governing body to modernise the “regulatory, technological, and operational capabilities.”
“The ninth Concorde Agreement secures the FIA Formula One World Championship’s long-term future and I am proud of the dedication that has been invested in this process.
“I would like to thank Stefano Domenicali and his team in what has been a strong collaboration, building a framework grounded in fairness, stability, and shared ambition.
“This agreement allows us to continue modernising our regulatory, technological, and operational capabilities, including supporting our race directors, officials, and the thousands of volunteers whose expertise underpin every race.
“We are ensuring that Formula 1 remains at the forefront of technological innovation, setting new standards in global sport,” Sulayem explained.