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Will the DOJ's intervention in the Andretti saga make or break F1's future in America?

Do you think that the Paris Olympics are the most viral sports event right now? If yes, then F1’s viewership stats will change your mind. In recent years, Formula 1 has reached an all-time high in terms of popularity for ‘n’ number of reasons. Of course, F1 has captured a vast American audience across the pond thanks to the Netflix show ‘Drive to Survive’. But even apart from that, Liberty Media has revealed that the addition of the new races in China and Emilia-Romagna this year has increased the revenue by $150 million. If adding two new races can have this effect, what will be the result of adding an entirely new team to the F1 mix?

Well, a dozen racing team owners are dying for a seat in Formula 1 and Andretti is one of them. The American motorsport giant, led by the father-son duo of Mario and Michael Andretti, the team runs in Formula E, IndyCar, Extreme E, etc. However, seeing their team race against the stalwarts like Mercedes and Ferrari in this pinnacle of motorsports is what the Andrettis want. They came oh-so-close to this goal when the FIA accepted Andretti-Cadillac’s bid to enter F1 by 2026 in October 2023, but problems arose when Formula One Management rejected their proposal.

Andretti Autosport has its roots in the US and Michael Andretti has stated his wishes to form an all-American team. The entry of this squad in Formula 1 would have ensured a huge hike in US viewership of the motorsports franchise. And who would love this added profit more than the F1 owners–Liberty Media? The American group has already worked hard to establish three huge races in the US to make Formula 1 a household name in the continent. And it wants to give another chance to the Andretti bid too. Thus, the President and CEO of Liberty Media, Greg Maffei, has announced there would be an investigation by the Department of Justice to look over Andretti’s F1 bid.

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This morning, we announced that there is a DOJ investigation. We intend to fully cooperate with that investigation, including any related requests for information,” Maffei has said to the NY Times. Liberty Media has already claimed that, in the second quarter of 2024, they have seen an increase in profits from $724 million dollars to $871 million. Now, if the DOJ overturns FOM’s rejection, the US will get its own F1 team with both drivers coming from an American background. This can amp up the success of the Grand Prix that takes place across the pond.

Thus, all of this is at stake as the DOJ’s verdict will be important for determining the American viewership numbers at the upcoming races like the Las Vegas GP. If you are surprised about why the DOJ is getting involved, you must know that Andretti’s F1 entry is an issue of political importance in the US right now–but how did it become so?

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Origin of the DOJ debacle involving Andretti’s F1 rejection

For an eleventh team to join the elite F1 grid, clearance from a number of organizations, including the FIA and the FOM is a must. While the FIA had no problems with Andretti-Cadillac’s bid, the FOM did. Ever since the news of a new squad’s possible entry into the competition came up, several Team Principals of the existing F1 teams have protested against this. Among them, Mercedes’ Toto Wolff and Ferrari’s Fred Vasseur have voiced concerns about the new addition to F1. And, the FOM sided with them and decided against letting Andretti enter into Formula 1.

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Will the DOJ's intervention in the Andretti saga make or break F1's future in America?

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However, six US senators who wish to see the representation of their country at the pinnacle of motorsports believe Andretti-Cadillac deserves a spot. In May, they had sent a letter to Jonathan Kanter, the assistant attorney general for the antitrust division of the Department of Justice as well as Lina Khan, the chair of the Federal Trade Commission. The petitioners wanted their government to investigate the FOM’s decision to reject Andretti’s bid to join the grid. They had even suggested in the letter that “it is possible that such a refusal to deal — especially if orchestrated through a group boycott could violate U.S. antitrust laws.”

Of course, the term “group boycott” has been included here because several F1 teams have been against Andretti-Cadillac’s F1 bid from the start. Now, the DOJ will look into matters and their decision will probably make or break the F1 market in the USA. What do you think will happen to Andretti’s F1 journey after this? Share in the comments.