Horner says Andretti 'a great brand', but money talks

Christian Horner acknowledges the brand value of having the Andretti and Cadillac names in Formula 1 but insists that adding an eleventh franchise to the grid ultimately "comes down to money".

American team owner Michael Andretti revealed his ambitions of fielding an outfit in F1 in 2021 during his botched negotiations to acquire Alfa Romeo-Sauber.

Despite that deal falling apart, Andretti remained determined to join the grid and opted for an independent effort but with little support from F1's constituents, as adding a new team would equate to a smaller prize fund for the sport's incumbents.

Andretti's latest joint venture with General Motors and its Cadillac brand has transformed the US outfit's potential entry into an enticing proposition in terms of brand recognition, but as Horner explains, the team's access to motorsport's elite remains a case of money over matter.

"Look, Andretti is a great brand, a great team," Horner told RACER. "Mario, what he did in Formula 1 — as an American as well — is fantastic. Obviously GM with Cadillac as well would be two phenomenal brands to have in the sport, and I don’t think there can be any dispute about that.

"As with all these things though, it ultimately boils down to, ‘Well, who’s going to pay for it?’ And you can assume that the teams, if they’re perceived to be the ones who are paying for it –– or diluting their payments to accommodate it — of course it’s not going to sit that well.

"The two teams that are supporting it (McLaren and Alpine) either have a partnership in the U.S. with them, or are going to supply them an engine. The other eight are saying, ‘Well hang on, why should we dilute our element of the prize fund?’

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"Then on the other side you’ve got the Liberty (Media) guys saying, ‘Well we’re not going to pay for it, we’re happy with 10 healthy, competitive franchises from an operational perspective — garages, logistics, motorhomes — it’s all more to accommodate.’

"I’m sure they would prefer the Audi model, where they come in and acquire an existing franchise.

"If you introduce another one or two teams, you dilute the value of the current 10 franchises, which of course teams — particularly down towards the bottom end of the grid — have got a very inflated inherent value at the moment."

"I hope a solution can be found. What would be cleaner would be if they were able to take on one of the existing teams or franchises, but they are certainly both great brands that would be very, very welcome in Formula 1."

Formula 1's $200 million anti-dilution fee has established a financial barrier of entry for potential candidates, and there has been talk of significantly increasing that hurdle.

Horner suggests that the current fee – divided up between the sport's ten teams - would only kick the can down the road. But doubling that expense for a new team could prove "prohibitive".

"Like all these things it all comes down to money, and I think there would be a tipping point," added the Red Bull team boss.

"If the teams’ prize fund was compensated to a value where you weren’t materially losing out, then of course it’s, what is that number? And then would that be prohibitive for a new entrant to come in?

"In the 18 years that I’ve been involved I’ve seen certain teams come and go, and I think it’s the first time ever in the last couple of years that all 10 teams have had solid financial footing.

"There’s usually one or two teams that have been on the brink of insolvency or bankruptcy.

"I think all 10 teams are in great shape, and that’s in part due to the popularity of the sport, but also the budget cap and the fact that there are only 10 tickets and 10 franchises.

"I think Formula 1 will be very conscious of diluting that if they could be giving themselves problems further down the line."

Contrary to Formula 1, the FIA through the voice of its president Mohammed Ben Sulayem has welcomed with great enthusiasm Andretti's partnership with GM/Cadillac.

But Horner says the governing body's favourable position on the matter is "irrelevant".

"This view would be common to any team — it’s irrelevant," said the Briton.

"As I said, to have the Andretti brand and name and Cadillac in Formula 1 would be fantastic, and hopefully a solution can be found.

"You can understand the FIA, they’ve got no financial consequence of this because they don’t participate in the prize fund, and they’d receive further entry fees for more teams coming in.

"So you can understand the FIA potentially wanting more teams on the grid. But I think they need to find alignment with the commercial rights holder, and the 2026 Concorde Agreement would seem the right place to deal with that.

"It just needs all parties to have a sensible conversation and agree something that is practical and workable."

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