A Surprising Contract Extension
Sergio Perez may not have had the best Christmas, but he certainly received one of the most expensive Christmas presents in Formula 1 this year. While the Mexican driver found himself without a seat for 2024, he was still the beneficiary of a significant gift just before the holiday season. In June 2023, Red Bull Racing surprised the motorsport world by announcing Perez’s contract extension for 2024, despite his recent struggles. At that time, Perez had just delivered disappointing performances in Monaco and Imola, failing to reach Q3 and crashing in Monaco.
The Early Decision Amid Struggles
Perez’s extension, announced early in the season, raised questions, particularly because his results weren’t improving compared to previous seasons. While he did manage to make the podium four times in the first five races, Red Bull’s dominance played a large role, with teammate Max Verstappen claiming victories. Perez was also consistently more than three-tenths slower than Verstappen, making it clear that the gap between them was only going to grow as the season progressed.
The Performance Struggles
Despite hopes from team principal Christian Horner that the contract would boost Perez’s confidence, it had the opposite effect. Perez was repeatedly outqualified by Verstappen in Canada, Spain, and Austria by large margins, and failed to progress to Q3 in multiple races. Only in Belgium did he manage a second-place starting position, though he finished seventh in the race. These struggles highlighted the ongoing gap between the two drivers, and even Red Bull’s previous experience with Perez’s mid-contract slump cast doubt on the wisdom of his early extension.
The Removal of the Performance Clause
The most puzzling detail of Perez’s new contract was the removal of the performance clause, which meant Red Bull could not simply part ways with him without financial implications. As the season progressed, it became clear that Perez, armed with a 2025 contract, was not going to retire voluntarily. Horner had hoped Perez would come to his own conclusion, but the negotiations eventually led to Perez losing his seat for 2024.
A Strategic Move for Support
Why Horner chose to extend Perez’s contract without a performance clause remains unclear. Some suggest Horner was under pressure to secure support from Perez’s financial backer, Carlos Slim. This expensive ‘gift’ may have been Red Bull’s way of ensuring loyalty, but ultimately, Perez now faces a different future in Formula 1.
