F1 Expansion Plans: FIA Seeks Up to Two New Teams for 2025

The global phenomenon of Formula 1 stands at an exciting crossroads, with the FIA officially opening an application process for prospective new teams to join the pinnacle of motorsport from the 2025 season onwards. This pivotal announcement marks a significant moment for the sport, inviting ambitious entrants to demonstrate their capability and commitment to competing at the highest level of the FIA Formula One World Championship.

The governing body of motorsport meticulously detailed the launch of this application process, seeking to identify high-calibre teams eager to participate competitively. Successful applicants will be granted the flexibility to choose their entry year, with options including 2025, 2026 – a year that coincides with the introduction of new technical regulations promising to reshape the sport – or 2027. This staggered approach aims to provide sufficient preparation time, especially for teams looking to align their entry with the forthcoming regulatory shifts.

The FIA’s stringent selection criteria underscore its commitment to upholding the integrity and competitiveness of Formula 1. Decisions on which, if any, candidates are chosen will be made based on “the overall long-term interests of the championship,” in conjunction with strict adherence to applicable regulations and governance arrangements. This holistic evaluation ensures that any new entry genuinely enhances the sport’s global appeal and sporting standard.

Meeting the Demanding Criteria: A Blueprint for F1 Entry

To ensure only the most prepared and capable teams join the grid, the FIA has outlined eight critical points against which all applications will be judged. These criteria represent a formidable challenge, demanding excellence across technical, financial, and ethical domains. Prospective teams must not only possess the ambition but also the demonstrable infrastructure and expertise to thrive in F1’s intensely competitive environment.

Technical Prowess and Resource Management

A fundamental requirement for any Formula 1 aspirant is “the technical ability and resources of the team.” This criterion delves deep into a team’s engineering capabilities, research and development facilities, and its capacity to design, develop, and operate competitive F1 machinery. It encompasses access to advanced simulation tools, wind tunnels, state-of-the-art manufacturing processes, and a highly skilled technical workforce. F1 is a technology-driven sport, and any new entrant must prove it can innovate and compete against some of the world’s most sophisticated engineering outfits. Establishing a robust technical foundation is paramount for long-term success and competitiveness within the series, demanding significant initial investment and ongoing commitment to technological advancement.

Navigating the Complex Regulatory Landscape

Applicants must also demonstrate “the ability of the team to meet and comply with its obligations under the F1 Sporting, Technical, and Financial Regulations.” Formula 1 operates under an incredibly complex and ever-evolving set of rules, meticulously designed to ensure fair competition, safety, and financial parity. Compliance is paramount, covering everything from intricate car design specifications and sporting procedures during race weekends to the intricate financial regulations, including the sport’s crucial budget cap. Teams must have robust internal structures and experienced legal and administrative personnel dedicated to understanding and adhering to these rules, ensuring fair play and financial stability across the grid. A thorough understanding of these regulations is vital to avoid penalties and ensure a smooth operational pathway within the sport.

Securing Financial Stability and a Robust Business Plan

Perhaps one of the most significant hurdles for any new team is the monumental financial demand of Formula 1. The FIA will rigorously assess “the ability of the team to raise and maintain sufficient funding to meet its financial obligations and to allow participation in the championship at a competitive level.” This isn’t merely about having start-up capital; it’s about demonstrating long-term financial sustainability and resilience. Applicants are mandated to provide “a detailed business plan (including financial projections) for the first five years of the project.” This comprehensive plan must convincingly outline diversified revenue streams (sponsorships, prize money, merchandise), detailed expenditure forecasts (car development, personnel salaries, logistics, entry fees), and robust contingency plans. It must prove the team’s capacity to withstand the sport’s substantial operational costs, which can easily run into hundreds of millions of dollars annually, even with the budget cap in place. Furthermore, any new team entering the championship would typically be required to pay a substantial anti-dilution fee, currently set at $200 million, to be distributed among existing teams, further emphasizing the financial commitment required.

Proven Experience and Expertise in Motorsport

Beyond financial backing, a team’s operational pedigree and human capital are vital. The FIA seeks compelling evidence of “the team’s experience and capabilities in the automobile and/or motorsport sector (including technical experience, racing experience, facilities, equipment, and engineering resources) and relevant staff headcount/ experience.” This criterion emphasizes a proven track record in high-performance motorsport. While direct F1 experience is highly advantageous, successful participation in other high-level motorsport categories such as Formula 2, Formula E, World Endurance Championship, or IndyCar can be highly advantageous, demonstrating an understanding of professional racing operations. The presence of experienced leadership, a competent technical director, skilled engineers, accomplished aerodynamicists, and a strong operational backbone is crucial for building a credible F1 team from the ground up. This collective expertise is essential for navigating the technical complexities and competitive pressures of Formula 1.

Upholding Integrity and Ethical Leadership

Crucially, hopeful entrants must indicate “whether the team and all individuals proposing to participate in the ownership, control, or management of the team are fit and proper persons.” This requirement ensures that the leadership and key stakeholders of any new team uphold the highest standards of integrity, ethics, and professionalism. The FIA aims to protect the sport’s reputation by rigorously vetting all key individuals involved in the ownership, control, or management, preventing any individuals or entities with questionable backgrounds from entering. This safeguard is paramount for maintaining Formula 1’s standing as a premier global sport and ensuring trust among competitors, partners, and fans alike. Transparency and ethical governance are non-negotiable foundations for participation.

Commitment to Sustainability, EDI, and Societal Benefit

In a significant evolution of its entry criteria, the FIA is now requiring applicants to provide “considerations of sustainability, EDI (Equality, Diversity, and Inclusion), and societal benefit” of their entry. This reflects a broader movement within motorsport towards greater environmental responsibility and social impact, aligning F1 with global best practices. Teams must detail how they intend to meet the FIA’s stringent sustainability benchmarks, which could include comprehensive plans for reducing carbon footprints across logistics and factory operations, implementing renewable energy solutions, promoting circular economy principles within their supply chain, and designing more environmentally friendly vehicles. Furthermore, robust commitments to diversity in recruitment, fostering inclusive team environments, and leveraging F1’s powerful platform for positive societal contributions (e.g., through STEM education initiatives, community engagement programs, or promoting accessibility in motorsport) will be closely scrutinized. This is a clear signal that modern F1 teams are expected to be more than just racing entities; they are to be responsible global citizens, contributing meaningfully to a better future.

Advert | Become a RaceFans supporter andgo ad-free

Adding Tangible Value to the Championship

Finally, the FIA will undertake an “assessment of the value that the candidate may bring to the championship, including consideration of its reputation and integrity.” This encompasses a team’s potential to attract new fan bases, broaden F1’s reach into new geographical markets, enhance the sport’s overall brand image, and contribute positively to the compelling narrative of Formula 1. A team with a strong, recognized brand identity, innovative marketing strategies, a passionate fan base, or a direct connection to a significant global automotive manufacturer could be seen as adding considerable intrinsic and commercial value. Such an entry would not only increase the number of competitors but genuinely enrich the overall spectacle and commercial appeal of Formula 1, justifying the expansion of the exclusive grid.

Navigating F1’s Political and Commercial Landscape

While the FIA sets the sporting and technical framework, the commercial realities and political dynamics of Formula 1 are equally influential in the entry process. The FIA noted that F1’s commercial rights holder, Liberty Media, “may also impose additional selection criteria/conditions (to be advised separately during the application process).” This highlights the unique dual governance structure of F1, where both the regulator (FIA) and the commercial proprietor (Liberty Media) hold significant sway over the sport’s direction and composition. F1 CEO Stefano Domenicali has previously voiced his resistance to expanding the grid beyond its current 10 teams, citing concerns about maintaining the exclusive value, competitive viability, and financial shares of existing franchises. Any new entry must therefore not only satisfy the FIA’s rigorous sporting and technical criteria but also gain the endorsement of the commercial rights holder, a process that includes navigating the aforementioned significant anti-dilution fee, currently set at $200 million, designed to compensate existing teams for a smaller share of the sport’s substantial revenues.

The FIA anticipates the final deadline for applications to be submitted will be April 30th, 2023, with a decision expected to follow swiftly by June 30th. It’s imperative to note that “no new applicant has an automatic right of entry to the championship,” and the grid remains capped at a maximum of 12 teams up to and including the 2025 season. Furthermore, the federation explicitly stated that “existing F1 teams will be given priority over new applicants.” This safeguard ensures the stability and ongoing investment of the current ecosystem. Should no applicant be deemed suitable by both the FIA and the F1 Commercial Rights Holder, no new F1 team(s) will be selected, reinforcing the exceptionally high bar set for entry into this elite championship.

A Vision for Growth: Mohammed Ben Sulayem’s Perspective

FIA President Mohammed Ben Sulayem, who last month initiated the plan to open this application process, articulated a forward-looking vision for Formula 1’s future. He declared that “the growth and appeal of the FIA Formula One world championship is at unprecedented levels,” making it an opportune and strategic moment for carefully considered expansion. “The FIA believes the conditions are right for interested parties, which meet the selection criteria, to express a formal interest in entering the championship,” Ben Sulayem added, highlighting the sport’s robust health, expanding global traction, and increasing commercial value.

He particularly emphasized the groundbreaking nature of the new sustainability and societal impact requirements: “For the first time ever, as part of the selection conditions, we are requesting that candidates set out how they would meet the FIA’s sustainability benchmarks and how they would make a positive societal impact through sport.” This strategic move firmly aligns Formula 1 with global environmental and social priorities, projecting an image of a forward-thinking sport committed to more than just on-track performance. It reinforces F1’s commitment to being a platform for positive change and responsible innovation.

Advert | Become a RaceFans supporter andgo ad-free

Ben Sulayem also strategically connected this initiative to recent regulatory successes, stating: “The process is a logical extension of the positive acceptance of the FIA’s 2026 F1 power unit regulations from engine manufacturers which has attracted Audi to Formula 1 and created interest among other potential entrants.” The stability, cost-efficiency, and relevance offered by these future engine regulations have clearly emboldened major manufacturers and investors, making the prospect of joining F1 more appealing and financially viable. This long-term vision for powertrain development is a key driver behind the renewed interest in grid expansion.

Industry Response and Future Outlook

An F1 spokesperson confirmed to RaceFans that it is “positive to have a clear process” for new teams to enter the series. They reiterated that “As the FIA have said this will involve the relevant stakeholders and any interest will be assessed by us together and consider what is best for the championship.” This collaborative stance between the FIA and Liberty Media, despite past tensions over grid expansion, suggests a unified approach to carefully evaluate potential newcomers. The entry of a new team into Formula 1 is a monumental undertaking, fraught with immense financial, technical, and logistical challenges. However, the undeniable allure of competing at the pinnacle of motorsport, coupled with the sport’s ever-growing global audience and increasing commercial value, continues to attract serious contenders. The detailed application process ensures that only those truly prepared to elevate the championship, both on and off the track, will be considered, setting an exceptionally high benchmark for the next chapter of Formula 1 history. The potential for a revitalized grid with fresh competition and diverse perspectives promises an exciting future for fans worldwide.

2025 F1 season

• Firing Lawson after two rounds wasn’t my call, claims Horner
• Alpine keep the faith in Colapinto but was he clearly more competitive than Doohan?
• Was that Stroll’s best or worst season yet alongside Alonso?
• Hadjar impressed Red Bull but Lawson showed he deserves a proper chance
• Antonelli justifies Mercedes’ faith in him after rocky mid-season alongside Russell

Browse all 2025 F1 season articles