McLaren Racing CEO Zak Brown has formally requested the FIA prohibit common ownership across multiple Formula 1 teams, escalating a governance debate that has simmered since the sport capped the grid at 10 teams in 2020. Brown's letter to the governing body, disclosed this week, argues that shared control structures undermine competitive integrity and complicate sponsor conflicts when a single owner fields entries under different liveries.
The timing matters. Red Bull has operated two teams—Red Bull Racing and AlphaTauri (formerly Toro Rosso)—since 2006, a structure that predates the current Concorde Agreement but has drawn renewed scrutiny as the grid's $200 million cost cap forces teams to optimize every resource advantage. Brown's letter does not explicitly name Red Bull, but the target is clear: no other team principal or ownership group currently controls multiple entries. The FIA and Formula 1 Management declined comment on whether a rule change is under consideration.
Brown's push arrives as F1's enterprise value climbs past $17 billion in private valuations, making team ownership stakes increasingly attractive to sovereign funds and family offices sizing sports assets. The Andretti Global bid for an 11th team—rejected in January despite FIA approval—exposed tensions between existing teams protecting dilution and Liberty Media's reluctance to split commercial revenue 11 ways instead of 10. Common ownership offers a workaround: buy two teams, consolidate operations where legal, avoid the new-entrant $200 million anti-dilution payment the Concorde Agreement now requires. Brown's argument is that this path should be closed before a bidder tests it.
The competitive case is narrow but real. Red Bull's dual-team structure allows driver development and technical personnel rotation that single-team operations cannot replicate. AlphaTauri has served as a proving ground for Max Verstappen, Daniel Ricciardo, and Carlos Sainz before their promotions or departures. Sponsor conflicts are murkier: Oracle cannot title-sponsor both teams, but second-tier partnerships in non-competing categories remain negotiable. The FIA's existing rules permit common ownership with disclosure; Brown wants prohibition.
What matters for team operators is the precedent. If McLaren succeeds, any future ownership consolidation—say, Audi buying Haas after entering through Sauber in 2026—would require divestment of one entry or a regulatory carve-out. For sponsors, clarity improves: a brand buying grid exposure would know no single owner can dilute that investment by fielding a rival team with overlapping category rights. For allocators, the calculus shifts. A dual-team structure offers operational leverage but regulatory risk if Brown's camp gains traction in the World Motor Sport Council, which sets F1's sporting code.
The path forward depends on whether Brown has votes. The F1 Commission requires majority support from teams, the FIA, and Liberty Media to recommend rule changes. Haas, Williams, and Alpine have publicly opposed grid expansion, fearing revenue dilution; they may view an ownership ban as a complementary protection. Ferrari and Mercedes have said little, but neither operates a second team, and both benefit from the current 10-team split of commercial revenue. Red Bull will oppose. The other six teams decide whether Brown's letter becomes a vote or a headline.
Watch for lobbying at the Spanish Grand Prix paddock in late May, when team principals convene for the next F1 Commission meeting. If Brown tables a formal proposal, the FIA must respond by the June World Motor Sport Council session in Monaco. Red Bull's 2025 AlphaTauri rebrand to Racing Bulls—announced in November—suggests the energy-drink company sees no immediate regulatory threat, but corporate restructurings take months. A rule change effective 2026 would still allow time to spin off or sell the junior team before penalties apply.
Brown's letter does not mention Andretti, but the subtext is clear: if the grid stays closed at 10, then those 10 slots cannot be gamed through shared control. The FIA's response will clarify whether F1's governance prioritizes competitive purity or ownership flexibility. Red Bull has 21 months until the next Concorde cycle opens for renegotiation in 2026.
The takeaway
Brown's FIA letter targets Red Bull's dual-team model as F1's rising valuations invite consolidation plays that could bypass new-entrant fees.
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