F1 News: Red Bull's Sergio Perez Contract Decision Revealed By Sources

Red Bull is expected to part ways with Sergio Perez, likely replacing him with Liam Lawson.

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

Sergio Perez's tenure with Red Bull Racing appears to be approaching its conclusion, as sources close to the team indicate that an official announcement concerning his departure is expected before Christmas, as reported by ESPN.

This comes amid ongoing discussions about Perez's role with the team for 2025 and beyond, with options ranging from an ambassadorial role to a complete severance of ties.

The Mexican driver signed a two-year contract extension earlier this year. This contract, reportedly drafted under the broader Red Bull umbrella rather than a specific racing team within the company, signified the team's confidence in his potential contributions. However, his performance in the 2024 season fell short of expectations. After securing four podium finishes in the first five races, Perez's performance waned significantly, with no podium finishes since the Chinese Grand Prix in April. This drop in form was a huge factor in Red Bull's inability to retain their Constructors' Championship title, as McLaren and Ferrari surpassed them in the standings.

Red Bull team principal Christian Horner has been vocal about his disappointment with Perez's performance, a sentiment that reportedly influenced recent contract negotiations. In these post-Abu Dhabi Grand Prix negotiations, the possibility of Perez transitioning to an ambassadorial role or severing ties completely was discussed. While this implies a potential end to his active racing with Red Bull, it also opens new horizons for his career within or outside the Formula 1 circuit.

An announcement clarifying Perez's future is anticipated this week, though it remains unclear if Red Bull has imposed a specific deadline for a decision. Meanwhile, Red Bull is preparing for life after Perez, with Liam Lawson poised to take up the mantle. The New Zealand driver has garnered attention following his 11 Grand Prix appearances with Red Bull's sister team over the 2023 and 2024 seasons. Following Lawson's promotion, Isack Hadjar, the Formula 2 runner-up, is expected to step into Lawson’s former role. Yuki Tsunoda is also set to continue his journey with VCARB into a fifth consecutive season.

With all Formula 1 seats occupied for the 2025 season, Perez's options within the sport are limited. However, leaving Red Bull could present opportunities in other racing series. Further speculation suggests that Perez might return to Formula 1 in 2026, potentially joining the Cadillac team, backed by General Motors, which aims to debut on the F1 grid that year.

While letting go of a seasoned driver like Perez is undoubtedly challenging, it underlines the ruthless aspect of Formula 1.