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Cadillac to pay rival F1 teams $450M after signing Sergio Perez, Valtteri Bottas
Cadillac is needed to pay the one-time anti-dilution fee of $450 million that gets equally distributed among the 10 other teams in Formula 1.
Cadillac, which has roped in Valtteri Bottas and Sergio Perez for its inaugural season, is paying a huge sum to each of its 10 Formula 1 rivals as part of the pre-arranged agreement, according to SPORTbible.
In March, Autoweek reported that the Cadillac team is required to pay a one-time anti-dilution fee of $450 million, which will be split equally among the 10 other teams in Formula 1. This was being done as part of the conditions to join the championship next year.
The American team is backed by General Motors and Andretti. On Tuesday, it was stated that Bottas and Perez have signed to drive for them during their inaugural season next year.
After joining F1 in 2016, the Haas F1 Team was not required to pay any anti-dilution fee, since it replaced the Marussia franchise.
What to expect from Valtteri Bottas and Sergio Perez?
As per SPORTbible, Cadillac has decided to have experience in their lineup, while both Bottas and Perez will be aiming to avoid finishing at the bottom of the 11-team Constructors' Championship next year.
For now, the prize money is determined as a percentage of about 50% of Formula 1's commercial revenue.
Also Read: Motor racing-Cadillac F1 team managing expectations with limitless ambition
Earlier, the BBC informed that the prize pool stood at $1 billion among all 10 teams, with the champion team getting $140 million.
With the addition of a new team it means that the prize money will be reduced starting from the next season.
The 11 Formula 1 sides, including Cadillac, are believed to have signed a Concorde Agreement, which will take effect on January 1, 2026. As of now, exact amounts have not been mentioned yet.
As per the current agreement, a new entrant is required to pay a total fee of $200 million to take part in Formula 1. The contract is all set to expire by the end of this year, SPORTbible reported.
F1 Concorde Agreement: What does it mean?
The crucial document, which governs key aspects of the sport, needs to be signed by all of the teams participating in Formula 1, as well as the FIA and the Formula One Group. It usually remains effective for five seasons, and then an updated version is signed.
Also Read: Cadillac signs Valtteri Bottas, Sergio Perez for Formula 1. Key details here
Under this agreement, it is decided how much TV revenue and prize money will be divided among all the teams.
FAQs:
Who is Valtteri Bottas?
Bottas, who turns 36 in the coming days, has secured victory in 10 races for Mercedes so far. He served as Lewis Hamilton's teammate between 2017 and 2021.
Who is Sergio Perez?
The 35-year-old has secured wins in six grands prix, which include five for Red Bull and one for Racing Point.
When does Cadillac make its F1 debut?
The Cadillac team will take part in the tournament next year.
