As part of the new Concorde Agreement signed by the formula one teams for the next 5 years, any team that wants to join the grid from 2021 onwards must have a long-term plan to stay because they will have to pay $20M to each of the other teams in the grid, which sums up to a total amount of $200M, just to enter the sport, they have agreed this new fee that any new team will have to pay if they want to enter the grid from 2021 onwards.
One of the most important parts of the new agreement is the fairer distribution of commercial income between the teams. However there were concerns about possible ‘not serious’ new teams. These ‘spontaneous’ teams would reduce big teams’ incomes just to disappear from the grid again in a few years.
Keeping in mind that the budget cap from 2021 onwards will be $145M, new teams will need over $300M for their first year if they want to be competitive. A similar amount to Red Bull’s current budget.