The Future of Formula1
Open agenda Crisis: The future of F1
PAF Model United Nations Study Guide:
Secretary General's Welcome Note…………………………………………………………………..3
1. Introduction to the Mandate of the Committee………………………………………………….4
2. Introduction to the Topic: The Future of F1……………………………………………………..4
3. Background and History of Formula 1 Governance and Technology…………………………..5
A. The Historical Foundations and Political Conflicts……………………………………………..5
B. The Dual Power Structure………………………………………………………………………….6
C. Precedents of Technical Revolution……………………………………………………….………6
4. Definition of Key Terms and Concepts……………………………………………………………7
5. Geopolitical Significance and Global Footprint…………………………………………………..9
A. Technology and National Competitiveness……………………………………………………….9
B. The Crisis of Sportswashing………………………………………………………………………10
6. Key Stakeholders in the Formula 1 Ecosystem…………………………………………………..10
7. Past Actions to Govern and Resolve Major Issues (1981–Present)……………………………..13
A. Contractual Frameworks: The Concorde Agreement and Financial Regulations…………….13
B. Technical Resets and Their Consequences……………………………………………………….14
8. Current Situation and Status Quo: The Looming Crisis………………………………………..14
A. Crisis of Governance within the FIA…………………………………………………………….15
B. Persistent Financial Imbalance……………………………………………………………………15
C. The Immediate Technical and Sporting Future………………………………………………….16
9. The Top Ten Existential Challenges Facing Formula 1………………………………………….16
A. The Crisis of Governance and Regulatory Legitimacy within the FIA………………………..16
B. Competitive Imbalance and the Pervasive Cost Cap Loopholes………………………………..17
C. The Risk of 2026 Power Unit Technical Dominance ("The Lottery")………………………….17
D. Unintended Safety and Performance Consequences of Active Aerodynamics………………..18
E. The Sportswashing Dilemma and Ethical Calendar Management……………………………..18
F. Calendar Saturation and Unmanageable Personnel Workload…………………………………19
G. The Debate over Shorter Races and Maintaining Tradition……………………………………19
H. The Climate Change Dilemma: Logistical Emissions vs. Car Technology…………………….20
I. Inflationary Pressure and the Economic Viability of Smaller Teams……………………………20
J. The Commercial-Regulatory Conflict in Concorde Agreement Negotiations………………….21
10. Questions A Resolution Must Answer (QARMA)……………………………………………..21
11. Works Cited……………………………………………………………………………………….22
Secretary General's Welcome Note :
Dear Delegates,
Welcome to Formula 1 Crisis Committee. This year’s open agenda , “The Future of F1”,
puts you in the driver’s seat of one of the most fast-paced and unpredictable arenas in the
world. Beyond the roar of engines lies a network of politics , innovation , and
pressure-driven choices that shapes the sport’s very identity.
As delegates, you must navigate crises, balance rival interests, and shape the future of
Formula 1 with foresight and precision. Remember that in this race, strategy is as vital as
speed .
The Secretariat and Organising Committee have worked diligently to design an
experience that is both intellectually stimulating and personally rewarding. We hope this
study guide serves as a valuable tool in your preparation and empowers you to make
meaningful contributions to your respective committees .
Best Regards ,
Daania Tanveer
Secretary General
PAF Model United Nations
Under Secretary General's Note :
Welcome on board delegates, I can’t wait to be thrilled by your ideologies and
competence . I look forward to seeing you stand as problem solvers today and as
potential architects of our world’s future tomorrow.
Your Under Secretary General ,
Sidra Ashraf
[Link] to the Mandate of the Committee
The Formula 1 Crisis Committee is convened to address the systemic pressures threatening the long-
term viability, competitive integrity, and ethical standing of the Fédération Internationale de
l'Automobile (FIA) Formula One World Championship. The committee's mandate extends beyond
managing an immediate trackside incident; it must develop policy, financial, and sporting frameworks
that reconcile the sport’s commercial expansion with its responsibility as the pinnacle of global
motorsport. The core challenge is the confluence of structural flaws that are reaching a critical
inflection point ahead of the mandated 2026 regulatory overhaul.
Delegates are tasked with acting as senior decision-makers—such as Team Principals, high-ranking
FIA officials, representatives of the Commercial Rights Holder (Liberty Media), major sponsors, or
host nation representatives—to navigate a complex web of competing financial and sporting interests.
The crisis is multifaceted: governance is struggling with internal integrity concerns 1, financial
regulations are inadequate against the immense spending power of manufacturer teams 3, and the
radical 2026 technical rules introduce an unacceptably high risk of generating multi-year single-team
dominance, rendering the competitive field predictable.5
The objective of this committee is therefore to preemptively develop binding, enforceable, and
technically sound policies. Failure to effectively regulate governance, finance, and technical
architecture before the 2026 rules are implemented could lock the sport into an uncompetitive,
unstable, or ethically compromised future. A foundational observation is that the failure to enforce
competitive parity effectively through the current Cost Cap structure 4 directly amplifies the high-
stakes gamble inherent in the 2026 technical reset. If the existing resource disparity is allowed to
persist, any technical advantage gained by a wealthy team in 2026 will be cemented into permanent
dominance, making the sport commercially predictable and unattractive to fans and non-dominant
stakeholders.
2 . Introduction to the Topic: The Future of F1
Formula 1 (F1), sanctioned by the FIA 8, stands as the apex of international open-wheel racing,
characterized by its fierce technological competition and global commercial footprint. While the
championship currently enjoys unprecedented commercial success and visibility, this prosperity
coexists with profound structural challenges. The primary focus of the crisis centers on the
impending 2026 season, which marks the most significant regulatory overhaul the sport has
undertaken since the 2014 introduction of the V6 turbo-hybrid era.9
The 2026 regulations encompass radical changes across the entire vehicle platform:
I. Power Units (PUs): A shift to a near 50% Internal Combustion Engine (ICE) and 50%
Electrical power split, drastically increasing the electrical component output (from 120kW to
350kW) and mandating the use of 100% advanced sustainable fuels.6 This move is intended to
align F1 with the automotive industry’s sustainability and technology goals.
II. Chassis and Aerodynamics: Cars will be shorter, narrower, and lighter (targeting 768kg, a
30kg reduction), incorporating active aerodynamics—moveable front and rear wings—to
manage efficiency and enable closer racing.12
This regulatory tipping point underscores the fundamental conflict within F1: the
commercial imperative versus sporting integrity. Liberty Media, the Commercial Rights
Holder (FOM), drives global expansion, calendar growth, and revenue maximization.14
This commercial success provides immense funding, yet the resources it generates are often
channeled by wealthy teams into non-capped areas of expenditure (such as personnel and
external R&D), thereby feeding the competitive imbalance it is supposed to solve.15 The
challenge is to implement the radical 2026 technical reset without amplifying existing
financial disparities, which could inadvertently lead to a situation where early technical
supremacy translates into locked-in championship dominance for years to come.
3 . Background and History of Formula 1 Governance and Technology
The highly politicized and financially intricate landscape of modern Formula 1 is the result
of decades of intense conflict over who controls the technology, the rules, and the revenue.
A. The Historical Foundations and Political Conflicts
Grand Prix racing traces its lineage back to the 1920s and 1930s, formalized by the FIA’s rule
standardization in 1946, culminating in the inaugural World Championship of Drivers in
1950.17 The structure of the sport, however, was fundamentally shaped by the "FISA-FOCA
Wars" of the late 1970s and early 1980s. These tensions arose between the regulator, FISA (the
then-sporting arm of the FIA, often backed by manufacturer teams like Ferrari), and the
Formula One Constructors' Association (FOCA), led by Bernie Ecclestone, representing the
independent British teams.14 The core dispute centered on the equitable distribution of revenue
derived from the rapidly commercializing sport. Tensions escalated, resulting in team boycotts
of official briefings and even the withdrawal of FOCA teams from the 1980 Spanish Grand
Prix.14
This existential threat, amplified by the near withdrawal of major supplier Goodyear 18,
forced a political resolution. The resulting agreement, signed in 1981, became known as the
Concorde Agreement.14 This contract established stability by guaranteeing team participation
in exchange for a defined share of the prize money, ensuring that FOM had a reliable product
to sell to broadcasters and promoters.19 The Concorde Agreement remains the bedrock of
F1’s economic structure, even though subsequent negotiations have been fraught with conflict,
notably in the late 1990s when top teams felt they were not receiving a fair return from the
sport's burgeoning revenue streams.20
B. The Dual Power Structure
F1 operates under a unique, often antagonistic, dual governance structure:
I. The FIA (Fédération Internationale de l'Automobile):Founded in 1904, the FIA is the
international governing body.21It acts as the regulator, setting all technical and sporting rules
(the Formula) 8, issuing the highest level of driver licensing (Super Licence), and maintaining
safety standards. The FIA President holds significant authority to shape the direction of
motorsport and address governance issues.1
II. FOM / Liberty Media (Formula One Group): This entity holds the commercial rights. Since
Liberty Media acquired them in 2017, FOM has focused on maximizing financial exploitation
through broadcast deals, race sanctioning fees, and global market expansion.14
The power dynamics between these two entities are negotiated within the Concorde
Agreement. Historically, regulatory changes have been used as a tool to reset the competitive
hierarchy.23 When one team achieves dominance, political pressure from rivals and FOM
(which dislikes predictable racing) forces the FIA to implement radical technical overhauls.
This policy cycle—from regulation to dominance to radical reset—creates both instability and
continuous opportunity for teams who can correctly interpret the rules early.9 This pattern is
critical to understanding the high stakes of the 2026 changes.
C. Precedents of Technical Revolution
The risk associated with radical regulatory shifts is demonstrated by the 2014 introduction of
the 1.6-litre V6 turbo hybrid power units. This complex change was intended to push the sport
toward greater technological relevance and efficiency.9However, Mercedes successfully out-
developed its rivals, establishing a period of overwhelming technical dominance that lasted until
2021.5 This event serves as a warning that complex, performance-critical regulation changes
invariably reward the team with the superior resources, leading to a long-term competitive
imbalance that the sport is desperate to avoid repeating in 2026.
4. Definition of Key Terms and Concepts
A precise understanding of the specialized terminology governing Formula 1’s structure,
finances, and technology is essential for addressing the current crisis.
5. Geopolitical Significance and Global Footprint
Formula 1’s status as a global championship grants it immense geopolitical significance, serving
as a platform for demonstrating technological prowess, penetrating key markets, and,
increasingly, sparking controversies related to ethics and human rights.
A. Technology and National Competitiveness
The decision to pursue the radical 2026 regulations, emphasizing highly efficient hybrid power
and 100% sustainable fuels 10, aligns F1 directly with the future development goals of major
global automotive manufacturers. The sport is viewed by these Original Equipment
Manufacturers (OEMs) as a crucial testing bed and marketing platform. The confirmed entry
of Audi in 2026 exemplifies this, with the brand citing F1 as the logical next step to
demonstrate "Vorsprung durch Technik" (Advancement through Technology) worldwide.31
Audi is developing its power unit in Neuburg, Germany, leveraging national expertise, while
chassis development occurs in Switzerland.31 This demonstrates that F1 is an incubator of
high-value, protected intellectual property, concentrated geographically in centers such as
Germany, Italy, and the UK’s “Motorsport Valley.” The global calendar is strategically
mapped to include markets that are "particularly important to Audi," illustrating how market
penetration dictates the sport’s footprint.31
B. The Crisis of Sportswashing
The commercial necessity of high hosting fees has led FOM to expand the calendar into
nations willing to pay a premium, often resulting in severe ethical conflict. F1 faces intense
criticism and accusations of "sportswashing" from numerous non-governmental organizations
(NGOs) due to its continued staging of races in countries with poor human rights records,
notably Bahrain and Saudi Arabia.29
This situation is defined by a conspicuous "double standard." The sport canceled the Russian
Grand Prix following the invasion of Ukraine 29, yet maintains events in Middle Eastern
countries despite ongoing political oppression, restrictions on freedom of assembly, and
documented torture and neglect of political prisoners.30 Activists and human rights defenders
argue that the positive publicity and glamour surrounding the Grands Prix are actively exploited
by authoritarian regimes to rebrand their image and distract from domestic abuses.29
NGOs have made specific, actionable demands, including that F1 must commission an
independent inquiry into human rights violations linked to F1 activities in Bahrain and
Saudi Arabia, and use its leverage to publicly call for the release of political prisoners and
human rights defenders.34 The sport’s reluctance to take such definitive action exposes a
crucial dilemma: the enormous financial dependency created by the need for high hosting
fees acts as a shield, insulating the sport from serious pressure to enforce its ethical
commitments. F1 is therefore facing a crisis of legitimacy, trading moral authority for
financial stability.
6. Key Stakeholders in the Formula 1 Ecosystem
The crisis surrounding the future of F1 is fundamentally a conflict between stakeholders
with mutually exclusive mandates, primarily divided along commercial, regulatory, and
competitive lines.
The most significant schism within the competitor base lies between the manufacturer-backed
"works" teams and the truly independent "customer" teams. Manufacturer teams, often backed
by entities like Daimler (Mercedes) or the Ferrari corporation, possess significantly deeper
pockets, allowing them to channel resources into areas strategically excluded from the Cost
Cap, such as facilities, driver salaries, and high-value executive compensation.15 This structural
advantage enables them to secure the best talent and infrastructure, reinforcing their
dominance before a wheel is even turned. Conversely, independent teams struggle under the
constraint of the cap while facing higher competition for talent. This divergence suggests that
the competitive challenge facing F1 is not simply about engineering, but about achieving level
financial oversight to prevent the sport from deteriorating into a permanent two-tier structure
where only teams can genuinely contend for the championships.
7. Past Actions to Govern and Resolve Major Issues (1981–Present)
F1’s response to major crises has generally followed two tracks: implementing comprehensive
contractual agreements to stabilize governance and initiating radical technical resets to disrupt
competitive stagnation.
A. Contractual Frameworks: The Concorde
Agreement and Financial Regulations
The establishment of the Concorde Agreement in 1981 was a pivotal action, resolving the
disruptive FISA-FOCA wars by formalizing team commitments and standardizing revenue
distribution.14 This agreement provided the stable operational platform necessary for F1’s
commercial success for decades.20However, the secretive nature and politically sensitive
negotiations surrounding prize money distribution have always been a source of tension, with
top teams routinely expressing dissatisfaction over the split between FOM's revenue share and
the teams' prize funds.20
The most recent major governance action was the introduction of the Financial Regulations,
or Cost Cap, in 2021.7 The stated goals were financial sustainability—preventing the collapse
of smaller teams—and enhancing competitive parity by limiting spending on car
performance.7 Starting at $145 million, the cap was reduced to a baseline of $135 million.25
To enforce this, the FIA established a three-tiered system of breaches: procedural, minor
overspend (less than 5% over the cap), and material overspend (5% or more over), with
penalties ranging from fines to severe sporting sanctions, including championship exclusion 26
Despite these regulations, the Cost Cap’s effectiveness remains severely limited. By excluding
major strategic costs—such as driver salaries, the compensation for the top three executives,
marketing, and engine development 3—the cap has failed to level the playing field. It merely
shifts the arms race to non-capped areas, meaning teams with larger corporate parents still
possess a decisive, unconstrained financial advantage.16
B. Technical Resets and Their Consequences
F1 has consistently used radical technical resets to address competitive stagnation, often with highly
disruptive effects:
I. The 2014 V6 Turbo Hybrid Introduction: This change achieved its goal of promoting road-relevant
technology and high thermal efficiency.9 However, it established a precedent of regulatory overshoot,
where one dominant entity (Mercedes) gained an early, insurmountable advantage, leading to a long
period of reduced competitive tension and illustrating the catastrophic risk inherent in overly complex
technical change.5
II. The 2022 Ground Effect Reintroduction: This reset aimed to clean up "dirty air" and improve the
ability of cars to follow and overtake closely.28 While some competitive convergence has occurred, the
technical hierarchy remains stratified, demonstrating that rule changes alone cannot overcome the
underlying resource disparity.
III. These historical actions confirm that F1 policy tends toward reactive political intervention or
radical technical solutions whenever a crisis of dominance emerges. While the Concorde Agreement
ensures the sport continues to operate, the failure of successive regulatory actions to produce
genuine, lasting competitive balance—as demonstrated by the 2014 experience—is why the 2026 reset
is viewed with such anxiety.
8. Current Situation and Status Quo: The Looming Crisis
The current status quo is defined by high commercial prosperity but increasing structural instability,
placing immense pressure on the FIA, FOM, and the teams as they race toward the pivotal 2026 rule
changes.
A. Crisis of Governance within the FIA
The FIA’s ability to act as a neutral and unimpeachable regulator is currently being undermined by
internal political turmoil and external legal challenges. Recent amendments to the FIA’s statutes have
been criticized for centralizing decision-making power with the President, potentially weakening the
oversight functions of the Senate and compromising the independence of the Ethics Committee.2
Critics have warned that this self-inflicted wound threatens the FIA's international standing and
reputation for appropriate governance.2 Legal challenges further compound this issue. In 2024, the
FIA reached a confidential financial settlement with Hitech to close an arbitration case related to team
selection, avoiding public court proceedings.41 More profoundly, former driver Felipe Massa initiated
a lawsuit against the FIA, FOM, and Bernie Ecclestone in 2024 over the outcome of the 2008 World
Championship, seeking declarations and compensation estimated at £64 million.41
B. Persistent Financial Imbalance
Despite the Financial Regulations, the cost cap environment remains highly fluid and politically
fraught. Global inflation, which peaked following the cap's introduction, necessitated annual
adjustments, effectively raising the real spending allowance.16 Furthermore, the complexity of
managing budgets across multiple currencies (USD, GBP, EUR, CHF) adds volatility, forcing the FIA
to grant concessions, such as a higher cap for new entrants like Audi in Switzerland due to differing
labor costs.42
Critically, the persistence of major exclusions from the cap—particularly driver and top personnel
salaries—ensures that financial disparity continues to dictate performance.16 Wealthy teams exploit
this by continuing to invest substantial sums in human capital and R&D routed through non-F1
entities. This has led to the emergence of the "rich car/poor car" divide, where teams prioritize resource
allocation to the car of the higher-performing driver, thereby reinforcing internal competitive
inequality despite the regulations.4
C. The Immediate Technical and Sporting Future
The 2025 season is largely a transitional year, focusing on minor aerodynamic tightening and rookie
driver running mandates.38 However, the competitive focus has already shifted entirely to 2026 R&D.
Teams are dedicating vast resources to understanding the new Power Unit and chassis regulations.
The growing anxiety is that the complexity of the new hybrid split will make engine convergence
extremely difficult, risking an early technical misalignment that allows one manufacturer to
dominate.5 Meanwhile, the unrelenting expansion of the race calendar toward 24 events has
intensified criticism from drivers and staff regarding unsustainable workloads and logistical
pressure.37
9. The Top Ten Existential Challenges Facing Formula 1
The confluence of regulatory instability, commercial pressure, and technical uncertainty presents ten
primary, interconnected challenges that threaten the long-term future of F1. Addressing these requires
integrated policy action across governance, finance, and technical domains.
A. The Crisis of Governance and Regulatory Legitimacy within the FIA
The ability of the FIA to credibly regulate the sport is compromised by internal conflicts and a
perceived centralization of power. Recent changes to the governing body’s statutes have drawn
significant criticism, notably from member clubs, who argue that the centralization of decision-making
authority with the President and Senate President compromises the ability of bodies like the Ethics
Committee to maintain institutional integrity.2 This structural shift risks creating a "dark period"
where oversight functions are weakened, fostering an environment where ethical breaches or political
interference can occur without effective check.2
The current environment, marked by high-profile legal actions—such as the massive compensation
sought in the Massa lawsuit over the 2008 championship outcome 41—further highlights the lack of
faith in the finality of sporting decisions and the FIA’s past enforcement failures. The consequence of a
persistent crisis of governance is profound: if the regulator is seen as politically compromised, wealthy
stakeholders will possess increased political leverage to challenge new regulations or refuse to
cooperate in the Concorde Agreement negotiations. The essential trust required for impartial
enforcement of the highly complex 2026 rules is jeopardized by the FIA’s current political turbulence.
B. Competitive Imbalance and the Pervasive Cost Cap Loopholes
The Cost Cap, despite its good intentions for financial sustainability, is structurally flawed, allowing
manufacturer teams to maintain a resource advantage that undermines competitive parity. The
regulation explicitly exempts the two most expensive and strategically important components of an F1
team: driver salaries and the compensation of the three highest-paid executives (Team Principal,
Technical Director, etc.).16
This exemption means that teams with deeper corporate backing can bypass the cost ceiling by
retaining and attracting the world’s best engineers and leadership through premium salaries, effectively
ensuring they dominate the human capital market.15 Furthermore, exemptions for marketing, travel,
and non-F1 related activities enable teams to subtly channel funding and research and development
(R&D) through road car divisions or external consulting arms, masking the true extent of their
competitive spending.16 The net effect is that the Cost Cap has merely shifted the resource arms race
away from visible car parts and into the realm of infrastructure and personnel, thereby failing to close
the performance gap and instead driving internal team decisions, such as prioritizing spending entirely
on one driver’s car—the "rich car/poor car" phenomenon—to maximize constrained budgets.4
C. The Risk of 2026 Power Unit Technical Dominance ("The Lottery")
The 2026 Power Unit (PU) regulations are designed to be technologically relevant but introduce
extreme technical complexity that could lead to single-manufacturer dominance, repeating the
competitive stagnation seen after 2014.5 The mandated 350kW electrical component, representing
a massive jump in battery output, means performance will hinge on highly sophisticated energy
management and deployment strategies.6
If one manufacturer correctly interprets this regulatory shift early—finding a loophole in battery
efficiency, MGU-K management, or sustainable fuel combustion—they could gain an advantage
that is uncatchable by competitors due to the restrictive Cost Cap environment. Jonathan Heal,
Haas’s Deputy Chief Engineer, described the situation as a "lottery," acknowledging the fear of
repeating the 2014 scenario.5 Should a technical divergence occur, the massive expense and long
lead times required to redesign power units mean that competitive convergence mechanisms may
fail, leading to years of predictable racing, which is commercially detrimental to the entire
championship. The complexity intended to attract new entrants like Audi 31 simultaneously acts
as a performance barrier, reinforcing the dominance of the teams that command the greatest
technological resources.
D. Unintended Safety and Performance Consequences of Active Aerodynamics
The 2026 technical regulations include the mandatory use of active aerodynamics—moveable front
and rear wings—to manage drag and downforce for efficiency.12
While designed to allow for smaller, lighter cars and increased overtaking, this system introduces
significant, potentially unforeseen, safety and operational challenges.
The system requires drivers to operate in variable modes (e.g., Z-Mode for low drag on straights, X-
Mode for high downforce in corners). Any failure of the deployment mechanism at speed, or
unexpected stability loss when reducing downforce, introduces a critical risk.39 Furthermore, top
drivers like Charles Leclerc have expressed concern that the new cars will fundamentally break their
established "muscle memory," shifting the competitive focus from instinctive driving to highly
complex, in-lap systems management.36 This technical complexity is also directly contradictory to
the mandated weight reduction target of 30kg (down to 768kg).43 Incorporating a reliable,
sophisticated active aero system and a large battery pack while achieving significant weight savings
presents a tremendous engineering challenge, and failing to hit the weight target will further
compromise the cars' agility and tire performance.
E. The Sportswashing Dilemma and Ethical Calendar Management
F1’s commercial success is ethically compromised by its increasing dependence on high-paying
host nations, particularly in the Middle East, which utilize Grands Prix for sportswashing.29 The
FIA and FOM are accused of applying a double standard: canceling the Russian Grand Prix for
geopolitical conflict while ignoring severe, ongoing human rights violations in key revenue-
generating markets like Saudi Arabia and Bahrain.29
Hosting races in countries that suppress freedom of assembly, censor media, and detain political
prisoners inherently compromises the ethical standing of the sport.30 NGOs have been explicit in
calling for F1 to use its considerable leverage to demand the release of political prisoners and to
establish an independent complaints mechanism for victims of human rights abuses linked to the
events.34 The current structure demonstrates that FOM's pursuit of high sanctioning fees overrides
its stated human rights policies. The longer F1 avoids implementing transparent, independent, and
binding ethical criteria for host selection, the greater the risk of alienating traditional Western fans
and sponsors who view the sport as morally complicit in state-level oppression.
F. Calendar Saturation and Unmanageable Personnel Workload
The relentless expansion of the F1 calendar, with plans extending to 24 or more races annually, creates
unsustainable logistical and psychological pressure on team personnel, particularly mechanics,
engineers, and support staff.37 This workload crisis jeopardizes long-term staff retention and overall
operational quality.
Moving highly complex, technologically advanced freight across multiple continents in rapid
succession for a 24-race schedule places immense strain on logistical and travel budgets, even for non-
capped items.38 More critically, the compressed schedule limits necessary recovery time, contributing
to burnout, chronic stress, and mental health issues among staff who spend disproportionately long
periods away from their families. While drivers have voiced criticism 37, the welfare issue is most acute
for the essential support staff who lack the profile and negotiating power of the elite competitors.
Failure to mandate adequate minimum break times, travel standards, or personnel rotation policies
prioritizes commercial expansion over the human sustainability required to maintain high operational
standards.
G. The Debate over Shorter Races and Maintaining Tradition
A recurring proposal from F1 leadership to shorten the length of traditional Grand Prix races to
supposedly appeal to younger audiences with "shorter attention spans" 44 poses a threat to the sport's
identity and historical integrity.
The standard 90-minute race length is a foundational element of F1, reflecting the necessary balance of
driver endurance, strategic complexity, and machinery reliability.44 Critics argue that altering this
format, especially when shorter Sprint Races already exist, fundamentally devalues the sport’s core
product. Furthermore, the focus on this cosmetic change distracts from the core structural issues, such
as competitive imbalance and governance crises, which are the true barriers to sustained fan
satisfaction. The underlying conflict here is between the commercial mandate (attempting to optimize
consumption for rapid digital engagement) and the cultural mandate (preserving the traditional
challenge and historical gravity of the Grand Prix format). Sacrificing tradition for short-term
commercial trends risks alienating the sport’s loyal fan base without guaranteeing lasting growth.
H. The Climate Change Dilemma: Logistical Emissions vs. Car Technology
F1's efforts to achieve its net-zero carbon target by 2030 are disproportionately focused on car
technology—namely, the 100% sustainable fuel mandate for 2026 11—while ignoring the
overwhelming source of its carbon footprint.
Analysis indicates that an estimated 99% of F1's carbon emissions result from the global logistical
operations, primarily the high-frequency air travel and cargo shipping required to move teams,
personnel, and freight across 24 or more global locations.45 By focusing the public narrative on
sustainable fuels for the cars, F1 engages in effective greenwashing, showcasing highly visible
innovation that addresses a negligible portion of the problem. A credible, comprehensive sustainability
plan requires delegates to mandate radical changes to the commercial scheduling, including
geographical grouping of races, stringent limits on air freight, and forced investment in lower-carbon
transport solutions, which would require commercial concessions from FOM regarding optimal
broadcast times and lucrative cross-continental scheduling.
I. Inflationary Pressure and the Economic Viability of Smaller Teams
Macroeconomic factors, particularly persistent global inflation and currency volatility, continuously
erode the intended competitive impact of the Cost Cap, particularly for smaller teams. F1 teams
operate across key economic zones (UK, Italy, Switzerland) using multiple currencies, while prize
money is paid predominantly in USD.42 This exposes budgets to complex hedging requirements and
inflationary risks.
The FIA’s ongoing necessity to grant annual inflationary adjustments, coupled with the political need
for concessions (e.g., regional labor adjustments for new entrants) 25, means the cap is constantly
escalating in real terms. This dynamic defeats the purpose of establishing a firm spending ceiling and
favors larger, financially sophisticated organizations capable of superior financial forecasting and
currency risk management. Without structural protections or mechanisms for revenue floor
guarantees, smaller teams face continuous economic strain, making it exponentially harder for them to
manage the capital expenditure required to transition successfully into the highly complex 2026
technical era.
J. The Commercial-Regulatory Conflict in Concorde Agreement Negotiations
The looming negotiation for the next iteration of the Concorde Agreement (post-2025) threatens to
destabilize the sport by reigniting political battles over revenue distribution and regulatory control.
Historically, teams have viewed the commercial split as unfair, arguing that FOM retains too large
a share of the rapidly growing global revenue pool.20
The current environment—characterized by F1’s record commercial value coupled with deep
governance instability (FIA) and massive technical uncertainty (2026 rules)—grants teams
maximum political leverage. Major teams may threaten to withhold commitment to the new rules
or revive discussions of a breakaway series to force concessions regarding a larger share of the prize
fund.46 The negotiation is not just financial; it is a critical fight for institutional control. If the new
agreement fails to deliver transparency and perceived fairness in revenue sharing, the underlying
stability that the original 1981 agreement achieved could fracture, jeopardizing team participation
just as hundreds of millions are being spent on the 2026 cars.
10. QARMA (Questions A Resolution Must Answer)
How will the FIA ensure demonstrable, transparent governance integrity and accountability in
the face of ongoing leadership crises?
What specific amendments to the Financial Regulations (Cost Cap) must be enacted to effectively
curb capital expenditure loopholes and create genuine competitive parity?
How can the FIA implement measures guaranteeing Power Unit convergence by 2026, preventing
one manufacturer from establishing sustained technical dominance?
What framework will govern the selection and retention of Grand Prix host nations to align F1’s
calendar with internationally recognized human rights standards?
Should F1 commission an independent mechanism to investigate human rights abuses potentially
linked to F1 events and implement a victim complaints process?
What concrete measures can be adopted to reduce the logistical carbon footprint (flights, freight)
that constitutes the vast majority of F1’s total emissions?
What policy adjustments are necessary to mitigate the workload and mental health impact of an
increasingly long and geographically demanding race calendar on team personnel?
Should driver salaries or the compensation of the three highest-paid executives be brought within
the perimeter of the existing Cost Cap?
How should F1 manage the introduction of radical technical changes, such as Active
Aerodynamics, to minimize unintended safety risks and maintain the core driving challenge?
What institutional changes are required to strengthen the role and independence of the World
Motor Sport Council (WMSC) and the Ethics Committee against presidential influence?
How should the distribution of commercial revenue be restructured in the next Concorde
Agreement to reflect the teams' essential role and mitigate the risk of competitive collapse?
What penalty structure must be established to ensure Cost Cap breaches are severe enough to
deter wealthy teams from treating fines as merely a "cost of doing business"?
11. Works Cited
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