The $200 million cost that new entrants must pay to enter Formula 1 may need to be increased, according to Red Bull team principal Christian Horner.
Depending on the completion of Michael Andretti’s bid to start a team in 2024 and the culmination of Porsche and Audi’s efforts to enter the sport by 2026, there could be 12 teams on the field for the first time since 2012.
Andretti Global has made no secret of their desire to enter Formula One the following year, while Porsche and Audi, despite recent rumours, may still have the option of forming a new team rather than investing in an existing one.
The $200 million cost that new entrants must pay to enter Formula 1 may need to be increased, according to Red Bull team principal Christian Horner.
As a result of adding new teams to the grid, the prize money that is distributed must be spread out more broadly, resulting in each team receiving a smaller sum of money.
To compensate, any new entrant into the summit of motorsport must pay $200 million, but that money goes rapidly once it is distributed, so that the pool shrinks swiftly after the newcomer arrives.
While the amount of money may need to be reviewed, especially given the current pace of inflation, Horner believes that the concept of a team effectively paying equity for the other teams is sound.
“What that essentially does, it puts an intrinsic value or minimum value on any entrant, you know, from P10 upwards,” he explained.
“I think that you’ve got to look longer term and I think it’s the first time in memory that we’ve got 10, healthy franchises, 10 healthy teams.”
“There was always a team, you know, the last couple of teams would always be fighting to survive, whereas now they’re in a position where they can actually plan for the future.”
“They can look forward rather than just being in the present.”
The 48-year-old, however, emphasises the problem, stating that as the economy worsens, the money paid by new arrivals is becoming less significant.
“The 200 million is a significant amount of money. But you know, in this business, and when you divide it by the participants, it doesn’t go a long way,” he added.
“It’s a one-shot, it’s not 200 million every year. So, you know, at the end of the day, a conversation like this will always come down to economics.”
Toto Wolff, the Mercedes team chief, had stated that the Andretti team would have to demonstrate that the initiative is “bringing in more money than it is actually costing.”
