Domenicali: F1 teams turning down offers worth 'almost billions'

Formula 1 chief executive Stefano Domenicali says interest in the sport is so high that teams are receiving and turning down billion dollar offers from potential entrants.

The deadline set by the FIA for prospective new teams to file their 'expression of interest' in entering F1, in 2025 at the earliest, came and went last month on May 15.

The governing body is now aiming to decide on any applicants by June 30.

However, Domenicali hasn't changed his stance on the matter. The Italian remains firmly entrenched in the camp of those that believe that Grand Prix racing does not need more than 10 teams.

"I don’t think so, that’s a personal opinion, I need to say that," he said, speaking to Tom Clarkson on Formula 1's latest 'Beyond the Grid' podcast.

"If you have a good show, 20 cars are more than enough. If you have two cars or two drivers fighting, the level of attention is mega.

"So if you have already two teams fighting, that means four cars, it’s just incredible.

"So can you imagine 20 cars, 10 teams are at the level where there is competition on track? It would be impressive."

The Italian pushed back on claims of 'protectionism' being enforced by Formula 1. Although not personally in favour of expanding the grid, Domenicali is keeping an open mind on the idea, while also defending the interests of the sport's current franchisees.

"I would say let’s wait and see. My ‘no’ is not against someone wants to come in, I need to clarify that because otherwise it seems that I want to be protectionist, that is not the case," he added.

"I want to see the right one and I need to also respect the ones that have invested in F1 in the last period, because we forget too quickly the respect.

"Now everyone wants to jump in the coach that is very fast. But we need to be prudent, we need to take the right decision, that’s what I’m saying."

Read also:

• Domenicali: Honda commitment validates F1 sustainability plans

F1, the teams and the FIA are currently engaged in the process of devising the terms of the sport's next Concorde Agreement, the all-important covenant that governs the commercial relationship between the teams and F1.

The future agreement will cover the 2026-2030 cycle, and Domenicali believes the topic of new teams entering F1 must be tabled and discussed during the negotiations between all parties.

"There is an evaluation going on today that involves the FIA and us to make the right call for the future," he explained.

"This is something that is also connected to the future discussion that will happen with the renewal of the Concorde Agreement, that we need to remember is expiring at the end of 2025.

"So we have still a long time to go, but it’s an evaluation that we need to take considering what I said in this period of time where in the past there were teams that were coming in, getting out with zero value.

"Now the teams are stable, very profitable and very strong in terms of also technical capability to be competitive on the track.

"Therefore, the right answer is that in the next months it will be a very important point of discussion that we need to tackle.

"That is, do we need to stay with 10, do we need to have more teams or we can give the exemption to a future possible team to be really very, very strong that can join F1?

"This is all a topic that will be part of the discussion for the future."

As part of its plans to protect its teams, Formula 1 wrote into the current Concorde Agreement a $200 million anti-dilution fee. But Domenicali says that number now needs to be revised as a result of F1's commercial value – and that of the teams – increasing.

"If you look what has happened in such a short term, talking about the value of one team, that was not many years ago – I would say two years ago when the new Concorde Agreement has been signed – when there was the talk about what is the value of a team that has to come in F1, there was a number put on the Concorde Agreement that was 200 million, which seemed unreachable, because there were teams in the past that were sold for £1.

"Now the market is offering almost billions to teams and they are refusing that. Can you imagine that?

"So that gives you the perspective of what we are building as an ecosystem.

"We are building important structure, important dynamics of which the more everyone is growing, the better and the stronger is the business platform which we are all working in."

Keep up to date with all the F1 news via Facebook and Twitter