Ferrari, McLaren and Williams have signed up to the new Concorde Agreement which will govern Formula 1 from 2021 to 2025.
The contract, which sets out the commercial terms of the sport, was first introduced in 1981.
The remaining teams have until the end of August to sign the deal if they wish to continue racing beyond 2020.
World champions Mercedes had reached an impasse with F1 over the new proposals, but they have now been resolved.
Toto Wolff, their team boss, believed Mercedes would be “the biggest victim in terms of revenue loss” but has since said the team “are at a good point” to sign the agreement.
Ferrari chief executive Louis Camilleri said the new deal was “an important step to ensure the stability and growth of the sport”.
McLaren chief executive Zak Brown added: “This is the right deal at the right time for the sport, its owners, its teams and, most of all, the fans.”
And Claire Williams, deputy team principal of Williams, said: “This next era will be characterised by closer and more exciting racing as a result of the new platform of regulations, which include more equitable revenue distribution and a first ever cost cap for our sport.”
The new deal is designed to end what many consider to be an unfair revenue system, whereby the top teams earn disproportionately more prize money, a system that has created a disparity in competitiveness down the grid and locked in an advantage for Mercedes, Ferrari and Red Bull.
Tuesday marked the end of the early signing period, during which teams received a financial bonus for committing. Both deadlines had been pushed back by a week after teams – including Mercedes – had called for revisions to the deal.
Article courtesy of BBC Sport
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