The agreements promote professionalism and increase the commercial success of Formula 1. The most important factor in achieving this was the requirement for teams to participate in each race, making the sport more reliable for channels that should invest heavily in acquiring television broadcasting rights. In return, a percentage of the sport`s commercial revenues were guaranteed to the teams. The new agreement is a big step in the right direction for a healthier sport, and while the teams have all contributed to it, Liberty deserves real recognition for this situation. A new trade agreement to reduce financial disparities between teams, to bridge competitive conditions and to close the performance gap is the next part of this process. In 1995, the FIA decided to transfer the commercial rights from Formula 1 to the Formula 1 administration for 14 years. In exchange, Ecclestone would make an annual payment. McLaren, Williams and Tyrrell protested by rejecting the proposed Concorde Agreement (negotiations for which it began in 1993). Ken Tyrrell, in particular, was outraged that Ecclestone, as president of OFZL, negotiated the transfer of the organization`s rights to his own company. Tyrrell also objected to the agreement`s endorsement being kept secret and argued that the secrecy of the agreement would only benefit Ecclestone (by weakening the bargaining power of the other parties). The three teams refused to sign the proposed concorde agreement, initially with the support of the remaining teams. On September 9, 1996, the new Concorde agreement was signed by all teams except McLaren, Williams and Tyrrell.
The agreement was to apply from January 1, 1997 to 2002. “We are pleased to have reached an agreement between the 10 teams by August on plans for the long-term future of our sport,” said Chase Carey, F1 CEO. “All our fans want more races, bike action and every team has a chance to get stormed on the podium. On July 29, 2008, the ten participating teams created the Formula One Teams Association (FOTA) to negotiate the terms of the contract.