F1 News: Analysts Reveal Red Bull's Rumored '75 Million Euros' Sergio Perez Buyout Dilemma

Saajan Jogia | 16 Hours Ago

Oct 19, 2024; Austin, Texas, USA; Oracle Red Bull Racing driver Sergio Perez (11) of Team Mexico waves to the crowd during a fan forum before the Sprint Race in the 2024 Formula One US Grand Prix at Circuit of the Americas. Mandatory Credit: Jerome Miron-Imagn Images / Jerome Miron-Imagn Images

Viaplay's Formula 1 analysts Van de Grint and Allard Kalff believe Red Bull is currently in a dilemma on whether to let Sergio Perez go by paying him a huge sum of €75 million since he signed a 2-year contract extension in June this year, or retain him in the team amid his underperformance that cost Red Bull the Constructors' Championship win this season.

Perez's position at Red Bull is under scrutiny after a notable drop in performance. He began the season strong, but his results faltered significantly, with no podium finishes after the Chinese Grand Prix in April. This decline was reflected in the standings, where his teammate Max Verstappen cruised to a fourth straight World Championship, while Perez found himself a distant eighth.

The contrast in performance contributed to Red Bull losing the Constructors' Championship to McLaren after the Baku race, followed by the loss of the runner-up spot to Ferrari. This has sparked speculation and rumors about Perez's future at Red Bull. Reports suggest that the team is in discussions with the Mexican driver to reach a mutual agreement on his departure. Additionally, Red Bull had been evaluating Liam Lawson and Yuki Tsunoda from its sister team, VCARB, as potential replacements for Perez.

The decision regarding the driver lineup was expected to be made after a meeting with Red Bull's shareholders following the Abu Dhabi Grand Prix. Van de Grint and Kalff suggest that Perez's buyout money is currently being negotiated between his legal team and Red Bull’s representatives, with an official announcement regarding his departure yet to be made. Speaking on Viaplay, as reported by Planet F1, Van de Grint said:

“It is not clear to me yet.

“I think he is not leaving, he refuses to resign.

“There are two possibilities, he drives next year or he gets an awful lot of money. The question is what such a buyout amount does to the story.”

Estimating the value of the buyout, Kalff reckoned it could be "somewhere between 50 and 65 million euros." However, Van de Grint believes it is "75 million euros" since they have to buy him out for "two years of his contract."

Kalff added that Red Bull will have to weigh this year's prize money, the sponsorship money Perez would bring in, and the buyout money. That is one reason why Red Bull had to bring the shareholders into the picture. He said:

“That’s why Helmut Marko [Red Bull senior advisor] says that the shareholders have to judge, because they can’t decide this themselves.

“He simply has a contract, and Red Bull now says, ‘Maybe we shouldn’t do it after all’.

“Then you start talking about money. You have to buy out two years of the contract, and you don’t get any money from Carlos Slim [Mexican business investor] for two years. That’s a huge amount.

“The Thai and Austrian shareholders have to decide on this. Marko and Christian Horner can’t decide this together. Maybe they’ll say later, ‘This is too much, stay put’.

“We’ve known for a long time that they want to get rid of him.”

Van de Grint remarked:

“He’s in a good position.

“In hindsight it was not a good move [from Red Bull], but it was a move by Horner to motivate him, and to get some peace in the house.’"