F1 News: How McLaren saved money by paying Ricciardo $18 million to leave the team
Although McLaren has been questioned for paying a hefty $18 million fee to replace Daniel Ricciardo with Oscar Piastri, the British team saved money with this decision.
Daniel Ricciardo's performances before 2021 put him in a strong position during contract negotiations, allowing the Australian to secure significant salaries from Renault and then McLaren.
It is no secret that McLaren paid the 33-year-old handsomely for his services, but the details of Ricciardo's contract are often overlooked.
According to a report from sportune.20minutesfr, Daniel Ricciardo was due to receive a pay increase from McLaren in 2023.
When the two parties initially agreed on a three-year deal, Ricciardo accepted a slight pay reduction (compared to his Renault agreement) in the first two years of this contract.
However, Ricciardo was set to receive a pay rise in his final season with the team (which would have been 2023), which would have been a return to his salary with Renault.
With McLaren deciding to replace Ricciardo before the end of his contract, the British squad actually avoided paying the increase in salary the 33-year-old was due to receive.
The decision also allowed McLaren to capitalise on Alpine's indecision regarding Oscar Piastri, acquiring one of the most highly sought-after talents in motorsport.
With McLaren unable to identify the reasons behind Ricciardo's persistent struggles at the team, an aggressive decision was taken throughout the summer.
It cannot be said that the ordeal was especially positive for the team's image, particularly given Ricciardo's adamance early in 2022 that his future was with McLaren.
In any case, unlike rivals Alpine, the Woking-based team were able to sign their target for the 2023 season.
Oscar Piastri's journey to F1 is one of the most dramatic in recent memory, so his progress at McLaren will be closely observed over the year.