- 2 February 2026
Reading time: 7-8 minutes
Summary: Formula One’s 2026 Concorde Agreement marks a turning point in how the sport is governed. For the first time, its commercial and governance frameworks were negotiated, signed and announced as distinct agreements, reflecting a recognition that how decisions are made now matters as much as how revenues are shared.
In a landmark moment for the future of Grand Prix racing, the 2026 Concorde Agreement marks the first time in the sport’s history that the Commercial Agreement and the Governance Agreement have been signed and publicised separately, formally defining them as two distinct documents.
This decision is more than just a procedural novelty. It signals a deeper shift, one where Formula One governance has become as critical as commercial stability.
The separation underlines how vital it has become to:
• balance stakeholder interests
• strengthen decision-making structures
• increase transparency and accountability
• reinforce trust in F1’s rule making machinery
In simple terms, governance is no longer an appendage; it’s in the driver’s seat.
The days when the Concorde Agreements bundled both terms into a single deal are no longer. The 2026 process shows that governance is now a firm and fundamental pillar in the future of F1.
Unlike the Commercial Agreement, which was signed in mid March 2025, the Governance Agreement required months of in-depth discussion and refinement between the Fédération Internationale de l'Automobile (FIA), Formula 1 and all 11 teams.
This difference in approval timelines reflects the growing complexity and importance of governance in a sport which is experiencing rapid technical change, commercial expansion and heightened scrutiny of its regulatory institutions.
Governance under scrutiny
The timing of the Governance Agreement’s unveiling is significant too. On 26 January 2026, the UK Charity Commission opened a statutory inquiry into the FIA Foundation, investigating potential conflicts of interest and examining whether trustees had managed their governance duties appropriately. Although the Commission stressed that the inquiry is not a finding of wrongdoing, the scrutiny sharpened the FIA’s need to demonstrate strong governance standards.
At the same time, 2025 saw public criticism of the FIA’s leadership. Well known figures, such as Motorsport UK’s David Richards, objected to the use of NDAs inside the World Motor Sport Council and raised concerns about transparency, accountability and independence within the FIA’s governance structures.
Against this backdrop, the need for a credible governance settlement became not just operational but reputational. F1, the FIA and the teams needed to show unity, clarity and institutional strength. The separate signing of the governance agreement allowed them to do that.
What’s new in the 2026 Concorde Governance Agreement
1. Lower voting thresholds in the F1 Commission
Beginning in 2026, the number of team votes required to pass rule changes has been reduced. While the FIA and FOM retain their own voting rights, fewer team votes will now be needed to reach a standard or super majority, effectively increasing regulatory agility, allowing decision-making to happen at pace.
Why this matters:
Lower voting thresholds enhance the sport’s ability to react quickly to technical and sporting challenges, from safety issues to mid-season regulation tweaks.
2. Increased funding for governance functions
A restructured entry fee and contribution model provides the FIA with additional funds to reinvest in governance procedures such as stewarding, marshalling, race control and technical oversight, areas that have faced heightened scrutiny since 2021.
Why this matters:
Under-resourced officiating damages credibility. More funding means more professionalisation, stronger race operations and better supported regulatory teams.
In short:
Rather than being held hostage by tactical vetoes or overstretched officials, F1 now has a governance framework designed to move (almost!) as fast as the cars on track.
The ‘war years’ and why F1 governance exists at all
Before the introduction of the first Concorde Agreement, F1 was almost destroyed by the ‘FISA–FOCA war’, an embittered battle for control over the sport between the governing body (FISA) and the teams’ association (FOCA).
Without a clear governance framework in place, boycotts, threats, fines and political retaliation destabilised the sport and undermined fairness, threatening to derail the industry.
The breakthrough came on 19 January 1981 when, after 13 hours of negotiation, the FIA, FISA and FOCA signed the first Concorde Agreement. It provided:
• stability in technical and sporting regulations
• protections against sudden rule changes
• a clear division of commercial and regulatory responsibilities
• a shared framework accepted as a win-win
This settlement effectively saved Formula One from implosion and laid the foundations of the modern sport.
What we can learn from F1’s governance journey
- Governance is now a competitiveness lever
Good governance is like a race car’s steering system, if it’s slow or imprecise, even the strongest engine struggles. How decisions get made (voting systems, processes, rule approvals) now impacts performance as much as technology or investment. - Resourcing officiating is reputational risk management
If officiating is unclear or inconsistent, the whole sport suffers. Investing in stewards, race direction and technical oversight is essential for fairness and for F1’s global brand. - Separating commercial and governance tracks clarifies roles
By unbundling money from rulemaking, F1 has created cleaner lines of responsibility. Business happens on one track, regulation on another. Everyone knows where they stand. - Symbolism matters when legitimacy is under pressure
Amid leadership controversies and regulatory inquiries, signing the governance agreement publicly sent a clear message that the system works.
What should governance-minded F1 fans watch out for next?
Although the Concorde framework has endured four decades, the next few years will test how effectively the 2026 reforms perform. Key questions include:
• how will the new voting dynamics function under real pressure?
• will the FIA provide transparent reporting on how additional funds are reinvested?
• what will be the outcome of the Charity Commission inquiry and will it drive further governance reforms?
What is clear is that robust, durable governance frameworks remain essential to keeping a complex, competitive, global sport stable and thriving.
F1’s governance overhaul makes one thing unmistakable: success on the track starts with strength off it.
From pit wall to boardroom, F1 shows that the how of decision making is now a true performance edge. If you want to build the same capability in your own organisation, consider upskilling with The Chartered Governance Institute UK & Ireland’s accredited pathways and professional qualifications. Find out more here.