Car Manufacturers, FIA, Liberty Media: ALL to blame for F1's current state | Drivers FORCED changes

[00:00:00] Let's not kid ourselves, Formula 1 in 2026 is hardly perfect. If anything, it feels like one of the driest years in the history of this sport since 2014 and even that was a whole new low. Now, on paper, having a season where Lewis Hamilton wins with Ferrari, where we could see the youngest Formula 1 world champion, where we're seeing two fallen world champions struggling to make do and one of them potentially even leaving their team, all of this makes for a very good story.

[00:00:28] But it hasn't quite been that way in real life. And it's clear, Kunal, the batteries are causing a problem. We agreed to this set of regulations. We agreed to make it 50-50. We agreed to make the cars lighter and introduce the cost cap and everything that comes along with it to facilitate more manufacturers. Does our dream actually hold color and weight in real life? Do you think F1 2026 has delivered on what it promised?

[00:00:54] Wow, what an explosive start. There's actually a blame game going on in Formula 1. And let's just enlist it. So this, you know, you want to quote your favorite driver and what he said about the FIA Samuel because that's where it started, right? Because Carlos Sainz said, who in the FIA saw this Formula for F1 in 2022 and said, yeah, that's good. Let's go racing. And then the FIA said, well, actually, technically, we are the FIA Formula 1 world championship. We give the name and the rights for it.

[00:01:24] But we don't control the governance. We wanted a car that's lighter. We wanted batteries that either last longer or don't have as much impact. We wanted the internal combustion engine to power you more. We wanted to reduce harvesting, reduce super clipping, let you have full power, reduce downforce, reduce tire pressures as well.

[00:01:44] When you actually sit to make a list, which you and I did, they said we wanted the perfect formula for Formula 1. But guess what? We couldn't get it because the teams told us you can't. They didn't vote. We didn't have the super majority. So is the governance structure to be fixed before we have to actually fix Formula 1? There's so many questions. And if you start to take that governance power away from the teams, will it even be Formula 1? Because that's the essence of it all.

[00:02:11] The teams came together to form the Formula 1 Constructors Association, which was owned by, of course, rather managed by Bernie Eccleston, which eventually resulted in Formula 1 management, which is what we see right now. It's the teams that came together to form this. And essentially, they are part of the whole equation. Anyway, you see it, the Concord Agreement has also been signed. So at least for the next, what is it, nine odd years now, since I think it was signed last year, the next nine odd years, it's not changing.

[00:02:39] So where do we go from here? We're stuck with a set of regulations that will now require at least some manufacturers to accept it was wrong and then agree to a solution, which may well actually go against their strategic interests. And I'm not just talking about mood and whim here. Kunal, they've made multi-million dollar investments into technical facilities and staff that they have designed according to this set of regulations. So we can't really move away from it for too long now.

[00:03:06] What you said is very crucial because of manufacturers. So we spoke of the blame game. There's drivers blaming FIA, FIA blaming manufacturers, manufacturers saying this is what the boardrooms want. This is what the future of mobility is. But at no point are the team bosses, are the manufacturers, are the representatives of the team saying that this is a wrong formula for Formula One. The FIA wants to go big on changes to deliver us big racing, but the teams think this is fine.

[00:03:33] The drivers need to get smarter, make changes, learn, adapt, which is also true because Formula One driving, your driving needs to adapt to the formula of Formula One, which is also what we've learned. But for the first time, the driving doesn't need you to be flat out. That's the problem-ish and algorithms are coming into play. And what you said, you know, about teams making rules and the Concord Agreement and so on.

[00:03:57] One of the most unique distinctions Formula One as a sport has with pretty much every other sport in the world is this is a sport where the participants actually are part of the rulemaking process. Because they say, if you make a rule, we are the ones who are investing those millions and billions towards helping the sport go racing. So we need to have a say in on the rules. And then it's a political matter. It's about who can take that meeting in their direction.

[00:04:24] And actually, not just one meeting, the whole regulation set every last detail, including wind tunnel time and number of people you can hire and what actual cost goes into a cost cap and what doesn't as well, because there were political battles for that too. So lots of stuff that goes on. And there's a reason why Formula One has come to this point, right?

[00:04:46] We wanted to make sure that more car manufacturers like Audi and Cadillac, which was intended to also include Porsche and in a greater capacity for although what they're doing now is still decent. We wanted all these people to come in and make Formula One bigger, kind of take it to the level of the 2000s. But you stuck up on a very key point, Kunal, drivers not being able to go flat out. But honestly, I think we could, and this is just a bold prediction, like a hot take or something.

[00:05:13] It doesn't matter if the combustion ratio is not 50-50 or if it's even like 60-40 towards the electric. I think broadly it won't make a difference as long as drivers can go flat out. And with electric power right now, we can't. We have to conserve it because batteries are limited in how much they can deploy at a high performance limit. So we're going to be handicapped by this. And yes, do you see that the new changes that are going to come up are something that can tweak this a little bit?

[00:05:39] Like the way the battery power allocation is now going to shift from 53-47 more towards the combustion side? I mean, these are, you know, plaster fixes because they realize deep down, which we'll never hear publicly, but they know that these needs to be fixed. The 60-40 change, although happens just in 2028, not even in 2027. They're making incremental changes. But the moot point, without getting very technical about this, Somal, is the fact that this is the FIA Formula One World Championship,

[00:06:09] but they do not have the political power, even if they have the will, to make changes as they want, especially when it comes to the rules. Or do you think that's more unfair or the fact that even Formula One, the owners of the sport, can't make a change just by themselves? Well, you know what I mean? But I'll put it this way. Formula One doesn't really own the sport or Liberty Media. They only own the commercial rights.

[00:06:37] It's the positioning perception that we, because we own the commercial rights, we also own the sport. But actually, it is the FIA Formula One World Championship. So, which is when the Sean Todd, Max Mosley, and now the Mohammed Ben Salaam of the world come and, you know, hog all the limelight, meet the drivers, mess their hair, go up on stage, give a medal. It's essentially to show that this is still the FIA Formula One World Championship,

[00:07:01] even if they don't have full control on the rules set and how the cars will be and how fast they'll go and so on. And it's very interesting because it was not always the case this way. There was a time when the FIA could just decide as they wanted. Just the way Ben Salaam decided that he wanted 11th team, he wanted it to be American. And then he said, as the FIA, I decide that and they need to go and find a solution with the commercial rights holder,

[00:07:27] which actually is one of those interesting loopholes within the FIA-FOM relationship. Because tomorrow, if Ben Salaam says, I want a 12th team and a 13th team, I don't believe there are guardrails put in place to stop him from doing that. He's already said we should have a 12th team, we should be Chinese. So the way he's able to add teams to the sport, he's not able to make changes to the formula or Formula One. And this actually goes back to when Max Mosley had made ad hoc changes.

[00:07:56] You remember when you were still dreaming of being a broadcaster, then Max Mosley would say, okay, now if you are actually going to work to a budget cap, you can build a cheaper car that can actually go faster. And then he gave three new teams entry, which none of them are still on the grid. Okay. So ever since Max Mosley sort of put, you know, so much aggression in rules and decision making at that time is when the teams united and said, we either need a seat at the table.

[00:08:26] So none of these ad hoc changes happen or thank you very much. We are going to have a breakaway series of racing, which was also very, very seriously discussed less than what, 20 years ago, I believe. 2009. There we go. Yeah. Yeah. So it's not too long ago. It's, it's a very weird time. So that just gives me a bit of, bit of fire into thinking of this idea that we have long thought about. Can the teams run Formula One themselves? Does Formula One need car manufacturers?

[00:08:55] Because it's clear that the interests of the automobile world are very different from what Formula One intends to be. Formula One is now about the lifestyle and cars are a part of it, but they're not the whole picture. The flights are a big part about it. You see sleep-based sponsors in Formula One, crypto-based sponsors in Formula One, although to a lesser extent now. Claude, AI-based companies is just one that comes up to mind. So a lot of these things are also taking over the world of Formula One.

[00:09:22] And I believe, sure, you need a Ferrari for it to be Formula One, but can the idea that independent private teams can run Formula One by themselves? Because theoretically, not all the manufacturers actually even own the teams fully. Like Mercedes has only a part share in Mercedes. And McLaren are owned by the Bahrain family, like the Royal family over there. So very interesting thing. You know, Somhil, firstly, very interesting. So let's assume the teams start a breakaway series. Let's just assume that. And they say, we're going to just deliver a racing product.

[00:09:51] We don't care about sustainability goals and net carbon zero and whatever. They cannot call it Formula One. Because if you want to call it the Formula One, you've got to race under the umbrella of the FIA. So only the FIA adjudicated championships can be called the Formula One World Championships. And my belief is that in these years, Liberty Media has made the brand of Formula One so strong that you wouldn't want to race outside of that umbrella. That's the thing. Right.

[00:10:21] Because Formula One is about fastest cars and drivers all over the years. So if Fernando Alonso went to IndyCar, you'd watch IndyCar. Okay. But with F1, like you pointed out, is so much more than racing. There are people who would say, we're going to watch Formula One for all the stories. So even if Alonso leaves and he leaves with a certain number of fans watching him race elsewhere, there is still a large number of fans who will still watch F1 because F1 is building affinity with F1.

[00:10:49] And I think very interesting business case scenarios. Is it though? Is it though this year? That's the question. Is it really though? Because I see this in real life too and I hate to say it, but interest is fooled a little bit. You think so? Yeah. I, in fact, think the exact opposite because the number of new fans joining in, the number of people watching is blown through the roof.

[00:11:14] And number of people watching, even in India with three languages, the only country with broadcast in three languages, English, Hindi, which you and I do along with Chetan and then Tamil. Number of people even watching the Hindi and the Tamil feed is so many. And I'll, in fact, put it to you the other way. In this blame game, again, there is another set of blames being put in place. What is that blame?

[00:11:37] Old fans are blaming new fans for the reason why Formula One is where it is today, where there is lack of focus on racing and more on fashion and more on luxury, lifestyle, travel and the whole experience. And the new fans in turn are blaming the old fans of gatekeeping. They're saying, you're not allowing us to come closer to the sport. But the truth is, we can all work in unison to actually make Formula One reach a billion fans on the planet.

[00:12:06] I think there's space for all of us. There's space for all of us. And honestly, so many perspectives too. So everyone can have their own thought process behind it. You can watch it just for the software or just for the engineering or just for the travel or just for the lifestyle. I think that's great. But I don't know. I think, at least in the circles that I'm in, we're all a little more excited by more combustion-based racing. Let's just put it that way. Like super clipping is just such a dagger to our hearts. And yes, it's still Formula One.

[00:12:36] We still love all the other stories around it. The driver market, the contracts, the tech, the emergence of new drivers. And now, Kunal, even silly season, which is about to start. I mean, it's almost underway, basically. We're still hearing rumors. But official confirmations will start coming now by this point of the season as well. So it's going to get more exciting for sure off the track. And there's also a title battle to look forward to now. There is a title battle to look forward to.

[00:13:02] And we'll break down some of those individual race-by-race stories like we always do with previews on our show. But, you know, for now, it's crucial to stay. If you're a new fan of Formula One, stick on. If you're an old fan of Formula One, stay on. Be strong because there are, you know, yes, there is wrong direction taken, if we may all admit to that. But there are full efforts being made to correct that.

[00:13:27] And again, just to go technical, you mentioned the budget cap, Samuel, earlier in the show. The FIA and Formula One are working to increase the budget cap. So teams can run a new chassis next year where they can then probably have a larger fuel tank to allow for more fuel flow rates as well. So a lot of these changes are incremental. You can't just say scrap these cars and build brand new ones. Scrap these power units and build brand new ones. That's a way of demolishing the sport.

[00:13:55] The bottom line is, yes, the blame game will continue. I think it feeds all the social media algorithms and clicks and engagements. But the truth is that people who actually are in power, who understand that they need to be more responsible, are doing all they can in the back end. So let's be patient and let's enjoy 12 races in 15 weekends, which you and I are going to share so many of those on Fancord. But for now, be patient and keep tuning in to the InsideLine F1 podcast.

[00:14:23] Remember to subscribe and check out all our live streams because we are pretty much going live every week, even through the long summer and the winter break period. So thank you very much. And we shall catch you at a live stream very soon.