General Motors is reportedly set to pay a staggering $450 million anti-dilution fee to secure Cadillac F1 team a spot on the 2026 Formula 1 grid.
This comes after Formula 1 announced on Tuesday that it has reached an agreement in principle with the American automaker to enter the Cadillac F1 team in 2026 season
The decision comes as part of General Motors’ strategy to enhance its presence in the global automotive market and capitalize on the growing popularity of F1, particularly in the United States.
The announcement follows months of speculation and discussions, particularly during the Las Vegas Grand Prix weekend, where it became evident that Cadillac was nearing an agreement to join the prestigious racing series.
While General Motors F1 entry has been framed as a modification of a previous proposal by Andretti Global, which was initially rejected by F1 earlier this year, the current approach is considered more robust since GM will participate as a team owner rather than merely collaborating with an existing team.
The shift in strategy demonstrates GM’s serious intent and investment in becoming a key player in one of the most prestigious motorsport series globally.
However, according to a report by PlanetF1, General Motors in collaboration with TWG Global will reportedly foot the bill to enter the Cadillac F1 team for an eye-watering $450 million anti-dilution fee.
The $450 million anti-dilution fee is notably higher than the current $200 million threshold mandated by F1 governing agreement in 2020. This is because F1 teams increased dramatically in value since that agreement, which led some to say the fee was too low.
Some in the sport believe that even the least valuable F1 team is now worth around $1B.
The anti-dilution fee will be distributed among the ten current teams as compensation for their share of prize money, which will now be divided among eleven teams starting in 2026 F1.
Liberty Media CEO Greg Maffei was confident about Cadillac F1 entry as the 11th team, highlighting GM’s potential to add value and interest to Formula 1, particularly as the sport continues to expand its footprint in the U.S. market.
“With Formula 1’s continued growth plans in the US, we have always believed that welcoming an impressive US brand like GM/Cadillac to the grid and GM as a future power unit supplier could bring additional value and interest to the sport,” said Maffei.
“We credit the leadership of General Motors and their partners with significant progress in their readiness to enter Formula 1.
“We are excited to move forward with the application process for the GM/Cadillac F1 team to enter the Championship in 2026.”
As Cadillac F1 team prepares to join the grid, it will need to secure an engine from an existing supplier until it can develop its own power unit, which is not expected to be ready before 2028.
This strategic move allows General Motors to establish itself within the competitive landscape of Formula 1 while simultaneously working on its proprietary technology.
Legendary 1978 Formula 1 world champion Mario Andretti is set to play a pivotal role as the director on the team’s board, underlining Cadillac F1 team’s commitment to making a serious impact in the sport.
However, his son Michael Andretti will not be involved with the team in any capacity after stepping down from his role in Andretti Global in September, with co-founder Dan Towriss taking over as the CEO.
The former F1 and IndyCar driver was perceived as a controversial individual who had offended people with his pushy tactics in attempt to secure entry.
The US Department of Justice is looking into F1’s decision to turn down Andretti’s initial submission.
