The FIA “rejects bids” for new Formula One teams, including one boasting a $1 billion investment.
In an effort to add more teams to the existing 10 in F1, several teams submitted proposals through the FIA’s Expression of Interest process earlier this year.
All but one of the applications submitted by those seeking to establish new Formula 1 teams will be rejected by the FIA.
Earlier this year, the organization that oversees the sport invited potential teams to submit their plans through its Expressions of Interest process.
The FIA has been going through the submissions from the four parties who met the deadline with a fine-tooth comb for several months.
As a successful motorsport team in several top categories, Andretti Global is the most well-known bidder.
Additionally, a partnership with automobile manufacturer General Motors through its Cadillac brand strengthens its argument.
However, Andretti was not the only business to make a proposal.
The Asian start-up LKY SUNZ joined the two Formula 2 teams Hitech Grand Prix and Rodin Carlin in making an offer.
Three of those bids, according to Motorsport .
com, are expected to be turned down. Only the Andretti-Cadillac bid is thought to have advanced to the FIA’s decision-making stage.
Andretti would still need F1 to approve its admission even if the FIA gave final approval.
Additionally, the existing teams are still largely opposed to the idea of an 11th team joining because the current £163 million dilution fee falls far short of the level of financial compensation they would prefer.
The bare minimum needed for that stance to soften is probably a figure three times that size.
In a press release on Friday, LKY SUNZ stated that it had obtained funding from an American billionaire and that it was prepared to pay the much higher dilution fee.
The reasons behind the rejection of the offers from LKY SUNZ, Rodin Carlin, and Hitech are currently unknown. But it is apparent that each of those bids fell short of the stringent standards set by the FIA for environmental and financial sustainability in at least one way.
Andretti is continuing to build a brand-new racing facility in Fishers, Indiana, which will serve as the operation’s future administrative center.
If granted permission to join, it projects that the building will be operational by 2025, marking its anticipated entry date into F1.
