F1 Rumor: Sergio Perez Set To Receive Huge Multi-Million Fee For Red Bull Replacement

Sergio Perez may receive up to $16 million to terminate his Red Bull Racing contract early due to underperformance.

Oracle Red Bull Racing driver Sergio Perez talks to media at the Formula 1 Pirelli United States Grand Prix at Circuit of the Americas on Thursday, Oct. 17, 2024. / Aaron E. Martinez/American-Statesman / USA TODAY NETWORK via Imagn Images

Sergio Perez's tenure with Red Bull Racing may meet an early conclusion despite the two-year contract extension he signed earlier this year. Talk of Perez's potential exit has gained momentum as he finished the 2024 season in the 8th position in the Drivers' Standings, a significant gap to his teammate Max Verstappen who clinched his fourth title. Rumors suggest that the Mexican driver could receive up to $16 million as a payoff to end his contract prematurely.

Sergio Perez, who joined Red Bull Racing in 2021, seemed set to remain with the team through the 2026 season after Red Bull renewed his contract in June 2024. Yet, as the 2024 season progressed, Perez's performance dwindled. Failing to consistently finish on the podium, as witnessed by his early Q1 exit in Mexico and a disappointing 11th-place finish in Brazil, Perez has struggled to regain form.

These lapses in performance have prompted Red Bull's team principal, Christian Horner, and advisor, Helmut Marko, to consider the difficult possibility of parting ways with Perez, despite recognizing the "contractual obligations" that complicate any immediate departure without financial implications.

The rumored financial settlement by Red Bull to sever ties with Perez could be as high as $16 million. Former F1 champion Nico Rosberg commented on the situation during the Sky Sports F1 broadcast of the Abu Dhabi Grand Prix, explaining:

“Perez is one of the mysteries of recent times, how he can lose such form.

“He is so far back, he struggles to get within six or seven tenths of Max which is huge in F1.

“All the rumors are that he’ll be out but he hasn’t confirmed it because he has a contract for next year.

“The rumor is that it’s around $16m! He wants his money, at least, so he won’t go away easily.

“There will be lawyer discussions.”

The impending decision to potentially replace Perez opens another chapter of challenges for Red Bull. Eyeing internal candidates, Red Bull is considering promoting either Liam Lawson or Yuki Tsunoda from its sister team, VCARB. Lawson, despite being an unproven newcomer, poses risks due to his inexperience, though Rosberg indicated support for this potential choice, describing it as a necessary gamble.

“It’s a hard decision. The options are not so fantastic because of the lack of experience on Lawson’s side," Rosberg added.

“The rumours are that they will go for Lawson.

“It’s not an obvious one, either. Against Tsunoda it’s not like he’s been on a different planet, he’s been there or thereabouts.

“That’s the gamble that they will take, and they should take it.”