Andretti’s rejection leads to an investigation by the House Judiciary Committee

Andretti Global’s offer to join the Formula 1 grid was rejected, prompting an investigation by the House Judiciary Committee. The committee, led by Representative Jim Jordan, is investigating the reasons for rejecting the partnership between Andretti and General Motors.

The House Judiciary Committee has shown great interest in Formula 1’s decision-making processes, particularly the recent rejection of Andretti Global’s bid to join the racing series in 2025 or 2026.

Andretti Global, backed by a significant American automotive presence through General Motors (Cadillac), had targeted entry into Formula 1 for the 2025 or 2026 season. The FIA, which is responsible for monitoring Formula 1’s technical and sporting standards, approved the offer in October last year. However, the commercial rights holder, Formula One Management (FOM), ultimately rejected the offer in late January, leaving a window slightly open for a possible future entry in 2028.

Representative Jim Jordan’s direct involvement had serious consequences. In the stern letter to FOM and Liberty Media, the questions raised were not only procedural in nature, but also pointed to deeper concerns about competition and economic justice. The letter, reported by NBC, said:

“Delaying Andretti Cadillac’s entry into Formula One for even one year will harm American consumers and benefit failing Formula One teams.”

“Limiting the number of teams in Formula 1 will increase the cost of sponsoring or purchasing an existing Formula 1 team. As the Committee considers this matter and considers possible legislation regarding the structure and competition of sports leagues, we write to request a staff briefing at the level of the decision to reject Andretti Cadillac’s application to join Formula 1.

The existing teams, all ten of which are said to have reservations about the addition of an eleventh team, fear a dilution of their share of the sport’s revenue streams.

The Concorde Agreement, which binds these teams financially to Formula 1, is about to expire in 2025 and negotiations are likely to be complex, especially given this new political spotlight. Jordan’s comments and support from other policymakers underscore the key concern that Andretti’s rejection may reflect issues inherent in the sport’s current financial and regulatory framework. The letter added:

“Formula 1 claimed that a new team could only add value to Formula 1 if it “fights for podiums and race wins.” However, the FIA ​​had already analyzed and approved Andretti (Cadilac) (sic)’s technical capabilities to compete with the current teams, and most current teams in Formula 1 do not meet the Formula 1 standard of regularly competing for podiums and race to fight wins.'”

The letter from Jordan also requests various documents:

“All documents and communications between or between Formula One Group or Liberty Media and the ten current Formula 1 teams relating to or relating to the entry of one or more new teams into Formula 1. All documents and communications relating to or relating to the Entry Fee or Dilution Fee in the current Concorde Agreement and possible changes to the Entry Fee or Dilution Fee in a future Concorde Agreement.

Despite the rejection, Andretti continues the development of his Formula 1 car and team. During an interview with Lydia Mee on Sports Illustrated, Mario Andretti commented:

“We work on this continuously every day, regardless of what has been presented to the press so far. I think we have a valid approach to this.”

“The FIA ​​​​has demanded everything from us, if you will, so that we are able to meet all the criteria and we have another blessing from the FOM that we need, but we have an important meeting coming up us, and hopefully we will have some positive results from it.

The 1978 Formula 1 champion added:

“From the beginning, we never stopped working. We already have a car, a wind tunnel and so on. At the moment the goal is to be at the start in 2026.”

“There are so many key elements here that need to be defined once we have an overall result: ‘Okay.’ Because even staff, very experienced people, who want to join us, and we have to have a positive ‘yes’ beforehand that we’re leaving.” We are of course extending a contract.

“Once we get the ‘okay’, we don’t start from scratch. We are already on our way.”