Claire Williams assures us: "There is enough money for 15 teams" in F1

Cadillac's arrival as the eleventh team this season has reignited the debate about the championship's actual capacity to expand the grid. Initially rejected by the sport's commercial management, the bid originally submitted by Andretti was only approved after months of intense negotiations and the payment of a so-called "indemnity." "anti-dilution"intended to compensate for the potential decrease in revenue for existing teams.

For Claire WilliamsThis reasoning is almost a thing of the past. She remembers the discussions around the strategy group table, at a time when every new entry was perceived as a direct threat to the financial stability of the existing structures. "We figured that each team could lose 10 to 15 million if a new team came in, and that wasn't particularly fair."she explains on the podcast Business of Sports.

But the context has radically changed. "Today, a team probably has 10 to 15 million sitting on their couch. It's no longer a cause for concern. There's enough money in the pot of the Formula 1 to accommodate an eleventh team. There's probably enough for 15 teams. A theoretical ceiling that contrasts with reality: the discipline has not filled all 26 available places on the grid since the mid-1990s.

Revenue sharing, a real red line

Although she believes the overall finances of the championship allow for an expanded grid, Claire Williams remains clear-sighted about the internal obstacles. "The team managers will refuse, because they don't want to share.", she says.

She nevertheless acknowledges the legitimacy of this caution: the teams have invested considerable sums to reach their current level. "A new team should not automatically be entitled to the same share of the prize money distributed by Formula 1 as existing teams. There should be a progressive system."she argues, suggesting a phased model rather than an immediate and equal sharing.

Behind the sporting question lies a major economic issue: the distribution of a pie that has become larger than ever. The governing body, the FIA, had initially approved Cadillac's application in the autumn of 2023, before the commercial division rejected it, then reversed its decision a year later. For the British company, the integration of the eleventh team was never a given. "This must have required enormous negotiations. It's never a given."

An economic revolution since 2017

According to her, the change in the financial dimension dates back to Liberty Media's takeover of the commercial rights in 2017, replacing CVC Capital Partners. Before this transition, Formula 1 was going through a period of stagnation, exacerbated by the 2008 financial crisis. "At the end of my era, title sponsorship deals were being signed for eight or nine million. You can't run a team with a main sponsor at that level."she recalls. At that time, teams were competing for limited budgets in a market dominated by advertisers.

Today, the balance of power has reversed. Sponsors are scrambling to get involved in a championship that has become a global platform for entertainment and marketing. “In my budget, we were aiming for 20 to 30 million for a title sponsor. Now, some are selling that status for 80 or 90 million.” A spectacular inflation that reflects the renewed attractiveness of the discipline, driven by its expansion in the United States, its digital strategy and the introduction of the budget cap, which has secured investments. 

According to Claire Williams, Formula 1 is currently robust enough to avoid uncontrolled expansion. She believes the sport will be able to protect itself from an excessively large grid.

But his observation highlights a structural tension: while the finances would allow for more participants, the collective will of the existing teams remains the main obstacle. Between economic growth and protecting established interests, Formula 1 is walking a tightrope. The era of fragile budgets and sponsors difficult to convince seems to be over. It remains to be seen whether this prosperity will one day translate into a larger grid, or whether stability at ten or eleven teams will remain the preferred compromise for the paddock's decision-makers.

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