F1 Rejects Andretti-GM Bid To Join The Grid

In a predictable yet disheartening turn of events, Liberty Media, the commercial rights holder for Formula 1, has declined the proposed entry of the Andretti team, which enjoys the support of General Motors. This decision comes despite the approval granted by the FIA, the governing body for global motor sports, for the Andretti Formula Racing application.

The team, operating under the Andretti Cadillac banner, had been working on developing a car with a Renault engine for the 2025 season. Additionally, General Motors had committed to producing its own power unit, set to debut by 2028. However, this bid always required the endorsement of the commercial rights holder and existing teams, who had consistently expressed their opposition to the inclusion of an additional team.

The current F1 teams, many of whom have faced financial challenges due to the impact of COVID-19 and have downsized as a result of budget restrictions, were unwilling to accommodate an 11th team as it would impinge on the profit distribution, despite FIA regulations allowing for up to 12 teams.

Mario Andretti, the former F1 world champion and father of Andretti Motorsport founder Michael Andretti, expressed his devastation on Twitter, stating, "I'm devastated. I won't say anything else because I can't find any other words besides devastated."

F1 asserts that it conducted a thorough evaluation and determined that Andretti had not demonstrated sufficient value to offset the potential risks and drawbacks or prove competitive. Consequently, F1 rejected their entry. Furthermore, F1 disclosed that after initial information exchanges and follow-up inquiries with Andretti in October, the invitation to present their application in person was declined. F1 also contends that the application would have been more favorable if it had secured a GM engine supply from the outset.

Additionally, F1 suggests that if Andretti had focused on developing a car for the new 2026 regulations, which will feature a revised engine formula, instead of attempting to enter the world championship from 2025, their application would have been more valid.

However, this is precisely what the Haas team did when they entered F1 in 2016, one year before a significant rule change in the F1 formula. The Haas team, currently the weakest team in F1, likely would not have been able to field a viable F1 car on the grid without the assistance of Ferrari and Dallara.

"We do not believe that the applicant would be a competitive participant," asserts F1. This comprehensive rejection of the Andretti application is likely to counter any potential legal challenge from the team.

There is also an implication that Andretti should reapply in 2028 when GM will have a works engine. This would provide F1 with the opportunity to reassess the $200 million anti-dilution fund, which the F1 teams consider too low in light of the soaring valuations of the teams following the Netflix documentary series "Drive To Survive." The teams are advocating for the fund to be tripled.

This adjustment would likely be ratified in an updated Concorde agreement, meaning that if Andretti were to reapply in 2028, they would need to contribute approximately $600 million instead of the current $200 million.

For what it's worth, Andretti is not accepting this rejection passively. The team asserts that it will continue with the development of its F1 project and strongly disagrees with the assessment provided by F1.

"Andretti and Cadillac are two successful global motorsports organizations committed to establishing an authentic American works team in F1, competing alongside the world's best," they stated.

"We take pride in the significant progress we have already made in developing a highly competitive car and power unit, backed by an experienced team, and our work continues at an accelerated pace," added Andretti Motorsport.

Andretti has assembled a substantial staff dedicated to the F1 entry and has already constructed a model adhering to the current ruleset in the wind tunnel as part of their extensive preparations, with the expectation of being granted entry.

The team has even recruited former Renault employee Nick Chester as technical director and is in discussions with former Force India, Aston Martin, and Alpine team principal Omar Szafnauer to join as team principal.

It is anticipated that Andretti will pursue legal action against F1's rejection, although no official statement to that effect has been made. This rejection would likely further sour the relationship with the FIA and Liberty Media.