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Greg Maffei, the CEO of Liberty Media, says he is determined not to be drawn into a protracted battle to negotiate a new Concorde Agreement.
In the past it has been shown several times that the negotiation for a new Concorde Agreement sometimes turns into a long bitter battle between the various teams and Formula 1. Greg Maffei is convinced that this will not be the case now because the teams are more on the same page. wavelength are then in the past.
“Historically, the Concorde Agreement was a fierce fight that was never signed until the season was already over,” Maffei explained at a recent event hosted by investment bank Goldman Sachs.
“The teams were working backwards on what they were paid,” Maffei said, adding that Chase Carey and Stefano Domenicali changed that culture.
“We got it done this time. We’re trying to change the dynamic. I thank first Chase Carey and now Stefano for changing the dynamic with the teams, where we are much more aligned.
“That doesn’t mean they want to pay us more,” he acknowledges. “But they all agree on the value of what we do together and that growing the pie has been positive for everyone.”
Since 2017, Liberty Media has been in charge of Formula 1, which led to the departure of Bernie Ecclestone, with whom the teams were often in conflict.
The current agreement runs until 2025 and the next one for 2026 will therefore be negotiated by Stefano Domenicali. Greg Maffei has already made it clear what his objectives are.
“What we’re really talking about is an early extension of an agreement that is very similar to the terms they have now,” he said. “Providing stability and certainty about where we are going is a benefit to them.
“You have seen the value of Formula 1 increase dramatically. The reality is that the teams’ valuations have risen much faster. They see the benefit of the regime we created together, they see the benefit of extending that deal.”
“Why do we think that’s an advantage? I think we can all sell sponsors, we can sell broadcasters, we can convince all people of the security of the sport and you remove all risks in the future.
Maffei admits that in the current deal, Liberty Media will get a bigger share of the pie as revenues increase.
“Above a certain percentage, we bet on ourselves,” he said. “What has happened as the sport has grown is the amount above that shared number has grown, so our share has grown.
“I don’t expect a big change in how that works. There will probably be something along the same lines and we will have an incentive to grow the business.”