All current Formula 1 teams have agreed to the new Concord Treaty up to and including 2025. This means that they all intend to continue under new conditions in the coming years.
On Tuesday it was announced that McLaren has agreed to the new treaty and less than 24 hours later all Formula 1 teams appear to have signed. A very important step, because with the new Concord Convention the future of the sport and the teams is largely determined.
There was a lot to be done about the new conditions, including the budget ceiling. This is new in Formula 1 and means that the teams will be allowed to spend less and less every year from next season. Especially for rich teams, such as those of Mercedes and Ferrari, this has quite a few consequences. They have to significantly reduce their expenditure and reduce the workforce. By 2021, the maximum budget will be USD 145 million. In 2022 it will go to 140 million dollars and from 2023 it will remain at 135 million dollars.
Now that everyone has agreed, that also means that Mercedes and Ferrari will remain active in F1. Especially around Mercedes, there were still some doubts about this and Ferrari has repeatedly threatened to leave the sport (partly because of the budget ceiling) in recent years. In addition to those two car brands, Renault, McLaren, Honda and Alfa Romeo are also represented in F1.