Formula 1 has announced that all ten teams have signed the sport's new Concorde Agreement, committing to Grand Prix racing's future until the end of 2025.
McLaren, Ferrari and Williams - F1's three most successful teams - announced on Tuesday that they had put pen to paper and signed the all-important contract that sets the commercial, financial and governance terms under which teams compete in F1.
The remainder of F1's teams have now also agreed to the terms of the new Concorde deal, meeting the early deadline of August 18 set by F1 and bringing to an end over a year of discussions and negotiations with teams to set in stone the formal provisions that will bind teams to the sport for the next five years.
"The agreement will secure the long-term sustainable future for Formula 1 and combined with the new regulations, announced in October 2019 that come into force in 2022, will reduce the financial and on track disparities between the teams, helping to level the playing field, creating closer racing on the track that our fans want to see more of," read a statement from Formula 1.
"With closer racing we will attract more fans to our sport, benefitting every team, and continue to increase the global growth of Formula 1."
Chase Carey, F1's Chairman and CEO, said: "This year has been unprecedented for the world and we are proud that Formula 1 has come together in recent months to return to racing in a safe way.
"We said earlier in the year that due to the fluid nature of the pandemic, the Concorde Agreement would take additional time to agree and we are pleased that by August we have been able achieve agreement from all ten teams on the plans for the long term future of our sport.
"All our fans want to see closer racing, wheel to wheel action and every team having a chance to get on the podium.
"The new Concorde Agreement, in conjunction with the regulations for 2022, will put in place the foundations to make this a reality and create an environment that is both financially fairer and closes the gaps between teams on the race track."
FIA president Jean Todt says the new agreement between the governing body, F1 and the teams "assures a stable future for the FIA Formula One World Championship."
"Over its seventy-year history, Formula 1 has developed at a remarkable rate, pushing the boundaries of safety, technology and competition to the absolute limits, and today confirms that an exciting new chapter in that history is about to begin," added Todt.
"During the unprecedented global challenges currently facing everyone around the world, I am proud of the way that all of Formula 1's stakeholders have worked together over the past months for the best interests of the sport and the fans to agree the pathway for more sustainable, fair and exciting competition at the pinnacle of motor sport."