Formula 1 rejects Andretti’s 2025 entry application

The Formula 1 rights holder has turned down Andretti’s application to join the grid from 2025 but outlined the conditions it would need to meet for future consideration.

Last October, the FIA announced that after evaluating several prospective Formula 1 entrants, Andretti had demonstrated sufficient technical capability to make a formal application. The racing outfit, led by former US racer Michael Andretti, was determined to join the grid in 2025, with a tie-up with US car giant General Motors that would see its Cadillac brand used.

However, under the Concorde Agreement, only new teams that are approved by the F1 rights holder, Liberty Media, can compete. From the outset, Liberty was cool on Andretti’s application. F1 president and CEO Stefano Domenicali said at the time: “As we always said, we need to make sure we take the right decisions for the business. I think this is an obligation that the FIA and us have together.”

According to Wednesday’s statement from F1, Andretti’s bid was rejected on three main grounds.

Competitiveness

Firstly, Andretti’s team was deemed unlikely to be competitive.

With new technical regulations coming into force in 2026, Andretti’s aim to enter in 2025 would mean developing two different cars under separate sets of rules – a significant challenge for existing outfits, let alone a start-up team. Mercedes needed four years to lay solid foundations when the hybrid era began in 2014.

In its statement, F1 concluded: “In our assessment, the addition of a 11th team in itself would not bring material value to the Championship. The most important way for a new entrant to bring value would be through competitiveness. We do not believe that the applicant would be a competitive entrant.”

“We do not consider that there is a credible basis for admitting any new applicant in 2025, which would require a new entrant to manufacture two completely different cars in its first two years of existence,” it continued. “The fact that the applicant proposes to do so gives us reason to doubt their understanding of the challenges they face. While this issue would not arise for an entry in 2026, this is a unique technical challenge for a manufacturer in motorsport at the pinnacle of global racing, which the applicant has not faced in any other formula or series it has entered.”

“Furthermore, the applicant proposes to rely on a forced power unit supply in its early years of participation. On this basis, we do not believe that the applicant would be a competitive participant.”

Photo by: Alexander Trienitz / Motorsport Images

Michael Andretti on the grid

Power unit supply issue

While Andretti has struck a strategic partnership with GM to join F1, the American automotive giant is understood to be unable to provide its own power unit until 2028 at the earliest. As such, Andretti would have needed to use another manufacturer’s engine as an interim solution. Talks with Renault over an engine deal were positive but ultimately collapsed last year, and there has been no progress since.

Although the FIA has a mechanism to force a manufacturer with the fewest customer teams to supply a team without an engine deal, F1 believes that, given Andretti’s relationship with GM, such a scenario would not be in the best interest of the manufacturer concerned, especially regarding intellectual property protection.

“The applicant’s proposal to attempt entry relying on a forced supply from a competing power unit manufacturer would inevitably be unattractive to the competitor power unit manufacturer in circumstances where the applicant is simultaneously pursuing a long-term partnership with General Motors as a power unit supplier, and a forced power unit supplier would view this as a risk to its intellectual property and proprietary technology,” it said.

Additional commercial value

With most of the current 10 teams having reservations about a new entry if it didn’t significantly enhance the sport’s revenues and thus dilute their share, Andretti’s bid faced resistance.

Guenther Steiner, the now-former team principal of the lone American outfit on the grid, Haas, wrote in his book last year: “In my view, if someone could prove they would help our sport’s revenue increase by at least five percent, why not? But if someone just wants to come in because we’re doing well, then no, get lost. You have to contribute, not just be present. Clearly, F1 understands this, which may explain why recent applicants haven’t succeeded.”

In its statement rejecting Andretti’s application, F1 argued that “any new team requiring a forced power unit supply for a period of seasons would damage the reputation and standing of the championship.” While acknowledging that the Andretti name is “respected in motorsport,” it contended that “F1 would bring more value to the Andretti brand than the reverse.”

Additionally, F1 claimed that adding another team would place unnecessary financial pressure on existing grand prix promoters and reduce “the space for all competitors across technical, operational, and commercial areas.” It could not “identify any material expected positive impact on the CRH financial performance metric, a key indicator of the championship’s standalone commercial value.”

Photo by: Steven Tee / Motorsport Images

TV Presenter Karun Chandhok talks with Zak Brown, Executive Director, McLaren Racing, and Michael Andretti.

Notably, Andretti’s approach during its campaign to join the grid has irked existing teams. In June 2022, Michael Andretti referred to existing F1 outfits as a “cartel” that made the sport look like a “European club.” In January last year, following the lukewarm reception, he described F1’s stance as “greedy.”

Steiner also commented on this in his book: “In my experience, if you want to invest in an already successful organization, you try to build good relationships with everyone while telling the top brass what you can bring to the table. That seems like the sensible way to go about it. If your investment isn’t immediately accepted, the next best thing is to understand why it hasn’t been and come back with a better proposal. When Michael started talking, F1 was doing well, and it’s doing even better now. In other words, it’s a seller’s market.”

Possible future prospects

From F1’s statement, the door appears firmly closed to Andretti unless it can secure a manufacturer engine deal and demonstrate competitiveness.

Andretti has already begun assembling its team, including appointing former Renault F1 technical director Nick Chester to lead its technical department and recruiting personnel. Following F1’s announcement, Andretti Autosport and Cadillac issued a joint statement expressing their “strong disagreement” with the decision.

“Andretti Cadillac has reviewed the information shared by Formula 1 Management Limited and strongly disagrees with its contents,” the statement began. “Andretti and Cadillac are two successful global motorsports organizations committed to fielding a true American team in Formula 1 to compete at the highest level against the world’s best teams. We are incredibly proud of the significant progress we have made in developing a competitive race car and power unit with an experienced team. Our work continues methodically. Andretti Cadillac also wants to express its gratitude to the fans for their support.”

Mario Andretti, the 1978 F1 World Champion and Michael’s father, also expressed his “sadness” on social media.