Formula One's 10 teams have committed to the sport until at least the end of 2025 by putting their signatures to a new commercial Concorde Agreement, which sets out the terms of their participation.
"This year has been unprecedented for the world and we are proud that Formula 1 has come together in recent months to return to racing in a safe way," Formula One Chairman Chase Carey said in a statement on Wednesday.
Formula One’s finances have been hard hit by the COVID-19 pandemic, with races so far being run without spectators, while others such as the showcase Monaco Grand Prix have been canceled.
"We said earlier in the year that due to the fluid nature of the pandemic, the Concorde Agreement would take additional time to agree and we are pleased that by August we have been able achieve agreement from all 10 teams on the plans for the long term future of our sport,” Carey said.
"The new Concorde Agreement, in conjunction with the regulations for 2022, will put in place the foundations to make this a reality and create an environment that is both financially fairer and closes the gaps between teams on the race track."
Formula One’s three oldest and historically most successful teams — Ferrari, McLaren and Williams — were the first to sign the Concorde Agreement.
The teams signed the document on Tuesday, the first day that the sport’s 10 teams could sign with rights holders Liberty Media and the governing FIA. McLaren were first to confirm they had done so, followed by their Italian and English rivals.
F1 confirmed the remaining seven teams including Mercedes, Renault and Alfa Romeo, had also agreed the new terms on Wednesday morning.
The deadline was the end of this month. The new terms include a more equitable distribution of prize money and a revised governance structure.
“This is the right deal at the right time for the sport, its owners, its teams and, most of all, the fans,” McLaren Racing CEO Zak Brown said in a statement on Tuesday.
“A more equitable sport is better for everyone: greater balance in the sharing of revenues among all the teams and clearer, simpler governance that cuts through vested interests and puts the sport first,” Brown said.
Ferrari CEO Louis Camilleri said it was an important step to ensure the sport’s stability and growth.
“We are very confident that the collaboration with the FIA and Liberty Media can make Formula One even more attractive and spectacular, while preserving its status as the ultimate technological challenge,” Camilleri said in a statement.
Ferrari are the only team to have raced in every world championship season since the first in 1950 and have won 16 constructors’ titles and 15 drivers’ crowns.
Williams, the third oldest and most successful team who are currently struggling, said the new deal was “vitally important” and represented “a significant opportunity for Williams to continue on our journey back towards the front of the grid.”