McLaren CEO Zak Brown sent a formal letter to FIA President Mohammed Ben Sulayem requesting governance changes that would prohibit or tightly restrict common ownership structures across multiple Formula 1 teams. The letter, confirmed by multiple paddock sources, does not name specific entities but arrives four months before Audi finalizes its Sauber takeover and while the Andretti expansion bid remains unresolved.

Brown's timing is deliberate. The current Concorde Agreement permits single entities to hold stakes in multiple teams under narrow conditions—primarily legacy carve-outs and passive minority positions below 33%. But no binding FIA sporting regulation explicitly caps active ownership overlap. Brown's proposal would codify hard limits before the next ownership wave begins. Two teams—Haas and Williams—are expected to field serious buyer interest in 2026, and Alpine's Renault parent has not ruled out partial divestment if engine supply economics deteriorate further.

The governance gap Brown is targeting became visible in 2022 when Andretti Global's bid revealed structural ambiguity. Andretti's application included passive stakes in other racing assets, which triggered quiet FIA review but no formal disqualification. Brown, who sits on Formula 1's Strategy Group, watched that process stall without clear regulatory precedent. His letter now seeks to preempt similar ambiguity before the next applicant or buyer tests the boundaries. One team principal, speaking off-record, noted that Brown's move also boxes in any attempt by existing teams to consolidate through back-channel stake swaps as valuations climb past $1.5 billion per entry.

The commercial rationale is straightforward. McLaren competes for sponsor dollars, driver talent, and technical staff against nine other teams. If a single ownership group controlled two entries—even with separate operational management—resource allocation tilts. Brown has previously argued that common ownership creates conflicts around team orders, championship prize money distribution, and governance votes within the F1 Commission. His letter reportedly cites four specific scenarios where dual control would distort competition, including coordinated technical partnerships and shared wind tunnel time under the current Aerodynamic Testing Restrictions.

Brown's letter also arrives as F1's equity structure itself shifts. Liberty Media is preparing a partial public listing of the F1 Group by mid-2025, which will introduce new institutional shareholders into the commercial entity. Those investors will care about franchise value stability, which depends on competitive balance. A governance regime that allows ownership creep between teams undermines that stability. Brown's proposal, if adopted, would functionally lock in the current ten-team structure and force any future entrant to arrive as a standalone entity with no pre-existing team ties.

The FIA has not yet responded publicly, but Ben Sulayem's office is expected to circulate Brown's letter to all ten team principals before the next F1 Commission meeting in early February. Two teams—Red Bull and Mercedes—have historically opposed expansion or ownership restrictions that could limit future optionality, and their votes carry weight. Brown's letter does not require unanimous support to prompt FIA rulemaking, but any governance change affecting ownership would trigger a Concorde Agreement review, which does require seven of ten team approvals.

Watch for counterproposals before the February meeting. Red Bull Motorsport Advisor Helmut Marko has already suggested that any ownership cap should include carve-outs for engine manufacturers, which would protect scenarios where a powertrain supplier like Honda or Ford acquires equity in a customer team. That would blunt Brown's intent. Also watch Alpine's next earnings call: if Renault signals any intent to monetize its F1 asset, Brown's letter instantly becomes the relevant governing framework for buyer structure.

The letter's existence is now public. The question is whether Brown filed it early enough to close the door before someone walks through it.