The Monaco-based company "Monaco Increase Management" has expressed interest in entering Formula 1 if the planned $ 200 million participation for new teams is canceled as announced by new Formula 1 CEO Stefano Domenicali.
In late 2019, Monaco Increase Management expressed interest in entering Formula 1 in 2021 when new technical rules were to take effect, and they were to team up with the Campos Racing Team team from Spain which already has winning teams in Formula 3 and Formula 2.
MIM and Campos had hoped that the new revenue distribution and new technical and sports rules would be a great opportunity for smaller teams to compete in Formula 1, but then a pandemic ensued that postponed the new rules, apart from budget constraints, to 2022.
Another reason why MIM and Campos have cooled off from the idea of joining F1 is the proposal to pay a $ 200 million co-payment for new teams as their entry will divide the prize pool into a larger number of teams.
Dividing the prize
Dividing the prize pool into more teams means less revenue for each team, so $ 200 million in participation would be shared by the current teams, which would compensate them for the reduction in annual prize income.
“If you believe in the growth of the value of the Formula 1 franchise then you will return that $ 200 million later, it protects the value of current teams,” commented Zak Brown at the time the said participation was first mentioned before signing the new Concorde agreement.
“I think we as an industry have tried to stop what we had in the past, and that is for someone like USF1 to announce their arrival in Formula 1 and then never show up on the track. That 200 million is there to ensure that someone who wants to get into the sport has the means to do so, not that we have various announcements that people will come to F1 and never show up on the track.
” The new CEO of Formula 1 Domenicali announced that the mentioned participation could be canceled in the right circumstances, which prompted the managing director of MIM, Stefan Gandolf, to announce yesterday about the possible entry into F1.
“The Monaco F1 Racing Team Project is the first project to actively negotiate with the Liberty Media Group on the possibility of joining F1 back in 2019, and we believe recent statements by new F1 boss Stefano Domenicali, who suggested a $ 200 million co-payment could be abolished, a step in the right direction.
” "We appreciate the open stance of both Stefan and the FIA who are ready to take the necessary steps to finalize our application."