Red Bull F1 Insider Reveals Shocking Cost of Sergio Perez's Exit

Alex Harrington | Dec 29, 2024

Oct 19, 2024; Austin, Texas, USA; A view of the crowd as seen in the sunglasses of Oracle Red Bull Racing driver Sergio Perez (11) of Team Mexico as he speaks 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 departure from Red Bull Racing is raising eyebrows as reports emerge about the shocking costs involved. After a tough 2024 season, the decision to buy Perez out of his contract led to huge financial implications for the team.

Perez's exit from Red Bull came after a season marked by substantial performance issues, with the driver finishing eighth in the drivers' championship. This was his worst performance with Red Bull, and he failed to secure any race wins or pole positions. Perez had started the year strongly, earning four podiums in the first five races, but his performance rapidly declined. Ultimately, he had only 152 points by season's end. This decline contributed to Red Bull's loss of the Constructors' Championship to McLaren, with the team trailing by 77 points.

the Mexican's on-track challenges forced the team to make difficult decisions about his future.

Despite these issues, Perez had extended his contract with Red Bull in May 2024, ensuring his place with the team until the end of 2026. However, the contract reportedly lacked performance-related clauses that might have made it easier for Red Bull to release him given his downturn. The initial hope that Perez would regain his top form faded as the season progressed, making the decision to part ways unavoidable for Red Bull. It was clear that despite the potential for a comeback, his struggles made his exit a necessary step.

The financial cost of Perez's departure from Red Bull is a topic of interest, with differing reports on the amount required to buy out his contract. Some sources suggest that Perez demanded an approximate $20 million for an exit, while others speculate that the figure could be as high as $82 million to cover the remaining two years of his contract. Additionally, the team could face further financial implications due to the loss of sponsorships associated with Perez, as well as the cost of securing a new driver. Red Bull elected to promote Liam Lawson from their junior team to fill the vacancy, avoiding larger financial outlays that might have been involved in acquiring a driver from another team.

Helmut Marko, consultant for the team, highlighted the financial stakes involved.

"We are in Formula 1, so yes," hje said, confirming it cost the team millions. Helmut Marko has also admitted that Sergio Perez understood the impossibility of reversing his fortunes, stating that his departure was deemed the best course of action for both parties. Discussions between Perez, Marko, and team principal Christian Horner reached a consensus that it was a mutual decision to give Perez a break for the time being.

Perez will maintain a relationship with Red Bull by participating in promotional activities in 2025, signaling a potential, if uncertain, path back to the Formula 1 grid by 2026.