The Concorde Agreement is a contract between the Fédération Internationale de l'Automobile (FIA), the Formula One teams (currently represented by the Formula One Teams Association (FOTA)) and the Formula One Administration which dictates the terms by which the teams compete in races and take their share of the television revenues and prize money. There have in fact been six separate Concorde Agreements, all of whose terms were kept strictly secret: The first in 1981, others in 1987, 1992, 1997, and 1998, and the current agreement in 2009. However, the secrecy was broken by noted racing journalist Forrest Bond when the 120+ page 1997 Concorde Agreement was published at the end of 2005 by RaceFax.
The effect of the agreements is to encourage professionalism and to increase the commercial success of Formula One. The most important factor in achieving this was the obligation of the teams to participate in every race, hence making the sport more reliable for broadcasters who were expected to invest heavily to acquire television broadcast rights. In return the teams were guaranteed a percentage of the sport's commercial revenue.
Read more about Concorde Agreement: First Concorde Agreement (1981), Second Concorde Agreement (1987), Third Concorde Agreement (1992), Fourth Concorde Agreement (1997), Fifth Concorde Agreement (1998), Sixth Concorde Agreement (2009), Seventh Concorde Agreement (2013)
Famous quotes containing the word agreement:
“Culture is the tacit agreement to let the means of subsistence disappear behind the purpose of existence. Civilization is the subordination of the latter to the former.”
—Karl Kraus (1874–1936)