The FIA and Formula One Management (FOM) have finally reached a formal operational agreement after nearly a year stalemate. Essentially, F1 has been running without a formal structure since the last agreement expired on December 31, 2012.

The Concorde Agreement underlines the operational and monetary principals around the sport, giving teams and management a unified framework for series decisions moving forward.

The agreement will run from 2013 until 2020 and outlines a new set of rule-making principals and a smaller F1 committee.

Following the agreement with FOM, the Concorde will now be passed to the teams for approval. During the last set of negotiations, teams argued that the structure was too favourable to winning and longstanding teams like Red Bull and Ferrari, but the new deal should provide a more unified framework for each team to benefit.

Speaking on the conclusion of the deal, FIA President Jean Todt said, “We can be proud of this agreement, which establishes a more effective framework for the governance of the FIA Formula One World Championship. The FIA looks forward to continuing to fulfill its historic role as the guarantor of both regulation and safety in F1 for many years to come.”