The huge anti-dilution fee GM has agreed to pay for F1 entry

General Motors will reportedly pay a $450m (£358m) anti-dilution fee to join the F1 grid in 2026.

That is according to BBC Sport, who report that “senior sources in F1” have revealed that GM and the US group TWG Global will pay the huge sum to order to secure their entry.

The reported figure is more than double the current $200m anti-dilution fee set out in F1’s existing rules.

F1 teams have been pushing for a major increase to the fund that any new entrant would have to pay as part of the new Concorde Agreement which needs to be finalised for 2026 onwards.

The anti-dilution fee is designed to offer compensation to the current teams when a new entrant joins the grid and subsequently dilutes the prize money.

Around 63% of F1’s income is paid out to the teams, but that will be split 11 ways instead of 10 once General Motors enters with its Cadillac brand.

F1 announced on Monday that an agreement in principle had been reached for General Motors to enter the sport in 2026.

"With Formula 1's continued growth plans in the US, we have always believed that welcoming an impressive US brand like GM/Cadillac to the grid and GM as a future power unit supplier could bring additional value and interest to the sport,” said Greg Maffei, the outgoing president and CEO of F1 commercial rights holder Liberty Media.

"We credit the leadership of General Motors and their partners with significant progress in their readiness to enter Formula 1.

"We are excited to move forward with the application process for the GM/Cadillac team to enter the Championship in 2026.”

It follows a push from the FIA and its president Mohammed Ben Sulayem to expand the F1 grid.

"General Motors is a huge global brand and powerhouse in the OEM (original equipment manufacturer) world and is working with impressive partners,” Ben Sulayem said.

"I am fully supportive of the efforts made by the FIA, Formula 1, GM and the team to maintain dialogue and work towards this outcome of an agreement in principle to progress this application to bring a GM/Cadillac branded team onto the grid for the 2026 FIA Formula One World Championship.

"All parties, including the FIA, will continue to work together to ensure the process progresses smoothly."