The F1 Concorde Agreement is a contract between Formula 1, governing body the FIA and the teams that compete in F1.
The agreement, among other things, is a commercial document that defines how F1’s television revenues and prize money will be distributed. The agreement was set to expire at the end of 2020 and was replaced by a new version that will run until the end of 2025.
One of the biggest changes in the new agreement is the introduction of the Cost Cap.
To compete in F1, every team must sign the Concorde Agreement and new teams must buy in to receive a share of the revenue.
Its name is due to the first iteration of the document, which was drafted in 1981, being discussed at the FIA offices, on the Place de la Concorde in France's capital Paris.