An F1 world champion believes Cadillac have already made a huge mistake

CADILLAC will be forced to pay a huge fee to enter Formula One in 2026.

The American manufacturer, backed by General Motors and Andretti, will be coming into F1 as an 11th constructor from next season.

Cadillac will pay a huge fee to enter F1 as the 11th team in 2026Credit: Cadillac F1 – FIA

The constructor will pay an ‘anti-dilution’ fee to its rivals to make up for their loss of earningsCredit: Getty

Cadillac announced its driver lineup, including Sergio Perez, earlier this weekCredit: Reuters

Mercedes reserve driver Valtteri Bottas is also joining the team from 2026Credit: PA

After months of speculation, on Tuesday, the team announced their driver lineup for the season, opting for veteran duo Valtteri Bottas and Sergio Perez.

And Cadillac will be hoping the two drivers can use their experience to help them sail smoothly into their first F1 season and finish in a strong position.

Constructors on the F1 grid are awarded prize money depending on where they finish.

The total prize pot for this is understood to be around 63 per cent of F1’s commercial revenue rights each season, as agreed under the terms of the last Concorde Agreement signed in 2021.

In 2024, F1 owners Liberty Media said they paid out £1.266billion to the ten constructors on the grid.

These payments include team performance over the last decade and a special legacy payment given to Ferrari for being F1’s longest-serving team.

But with the introduction of an 11th team, the slice each team gets will naturally reduce in size.

Under the existing Concorde Agreement expiring at the end of this season, it was stipulated new teams would pay an anti-dilution fee of around £150million to make up for the loss in earnings of the established grid.

However, with a new Concorde Agreement coming into place from 2026, Cadillac have agreed to pay a staggering £358m anti-dilution fee, according to the BBC.

Cadillac cars will be powered by a Ferrari engine until 2028, when they will then become a works team with an engine built by General Motors.

1997 F1 world champion and Sky Sports pundit Jacques Villeneuve believes the team has made a mistake with its driver lineup.

Speaking to ComeOn Ontario, the 54-year-old explained the team should have moved for four-time IndyCar champion Alex Palou.

Earlier this week, Palou, 28, was linked with a sensational switch to Red Bull to partner Max Verstappen in 2026, but he has since denied those rumours.

However, Villeneuve is concerned about the ability of Perez and Bottas to develop the car.

He explained: “They (Bottas and Perez) both have a lot of experience but is it the right experience? That’s what we need to find out.

“To know where you’re at, you need some form of experience with a completely new car next year.

“I’m surprised they didn’t take one experienced and one young driver. I’m very surprised that they didn’t take Alex Palou.

“He would have been great for them. I’m actually flabbergasted.

“But it has tended to be the experienced drivers that get kicked out to be replaced by younger rivals who are sometimes not good enough. At least Cadillac has gone the other way.”

The Canadian continued: “Just because an engineer was at McLaren or Red Bull while they were winning, doesn’t guarantee he’s any good.

“So, they both won races, so they both know what it takes to win. Now we’ll find out what kind of work they bring to the team.

“Driving fast within a car that can win is one thing, developing a car is completely different. And that’s something we don’t know if they’re capable of doing.”

F1 returns this weekend with the Dutch Grand Prix following the summer shutdown.

McLaren duo Oscar Piastri and Lando Norris lead the drivers’ championship by a considerable margin, with third-place Verstappen trailing by 88 points going into the four-time champion’s home race.

Ex-F1 world champion Jacques Villeneuve given his verdict on Bottas and PerezCredit: Alamy