Private Law Theory

ABSTRACT
The sport of Formula 1 (F1) is governed by a web of contracts, with arguably the most significant being that between a driver and the team they represent. The contractual framework governing the Formula 1 drivers is extremely complex, spanning from performance-related clauses to intellectual property protection and image rights. This paper examines the enforceability of such agreements and the laws governing the same, along with the adjudication of breaches and the remedies available to teams and drivers. The regulatory oversight is primarily done by the Fédération Internationale de l’ Automobile (FIA), with disputes being subject to the FIA’s Contract Recognition Board (CRB), an arbitral body that delivers binding resolutions. Case studies are an integral part of the study through which the enforceability of F1 contracts can be better understood. High-profile disputes surrounding drivers such as Oscar Piastri, as well as the infamous decisions of Oracle Red Bull Racing regarding the removal and demotions of its second drivers like Daniil Kvyat, Pierre Gasly and Alex Albon over the years are studied. These cases raise questions regarding the scope of performance-based clauses and the extent to which teams can unilaterally exercise contractual discretion as well as the merit of informal assurances provided such as the ‘handshake agreement’ that ultimately led to driver, Daniel Ricciardo’s exit from Red Bull Racing, as opposed to formal contractual obligations. The paper argues that while the CRB ensures efficiency and confidentiality, its limited transparency prevents the development of broader jurisprudence in sports law, especially in cases that lack precedents. As a result, enforceability in F1 driver contracts relies heavily on private arbitral precedent and established team practices rather than public legal rulings.

Makki Sudheer, Shreya, Enforceability of Formula 1 Driver Contracts (September 21, 2025).