New concorde agreement signed

A new Concorde Agreement has been signed by outgoing FIA President Max Mosley marking an end to the political wrangling between the FIA and the Formula One teams over the future direction of the sport.

The Concorde Agreement a contract between the FIA, Formula One’s commercial rights holder and the teams – sets out the basis on which the Teams participate in the championship and details their share of the sport’s revenue.

The FIA said in a statement: “The WMSC has also approved a slightly revised set of stable Sporting and Technical Regulations (to apply from the 2010 Championship onwards), which have been agreed by the FIA and the Teams and which will be published shortly on the FIA’s website.”

“The new Concorde Agreement, which runs until 31 December 2012, provides for a continuation of the procedures in the 1998 Concorde Agreement, with decisions taken by working groups and commissions, upon which all teams have voting rights, before going to the WMSC for ratification.”

A new Concorde Agreement was high on the teams wish-list when they negotiated a peace deal with the FIA at the World Motorsport Council hearing at the end of June.

At the hearing the teams agreed to look at alternative ways to reduce spending to the level seen in the early 1990s.

The FIA confirmed today that the teams have now agreed the measures by which they will do this, as set out in a “resource restriction agreement”.

The FIA said: “In addition, as agreed in Paris on 24 June 2009, the Teams have entered into a resource restriction agreement, which aims to return expenditure to the levels that prevailed in the early 1990s.

“With the 2009 Concorde Agreement and the resource restriction agreement in place, the FIA looks forward to a period of stability and prosperity in the FIA Formula One World Championship.”