$40M Sponsorship Reported to Save Sergio Perez’s Seat as Max Verstappen Loses 10-Year-Old Patron

Despite clinching his fourth consecutive world championship this year, Max Verstappen has lost his long-time sponsor, Jumbo. Meanwhile, his teammate Sergio Perez, who couldn’t win a single race in 2024, and whose Red Bull seat is in jeopardy, is not short on sponsorship backing.

The brands associated with the Mexican reportedly pump in around $40 million to Red Bull, out of which $10 million covers Perez’s salary. This explains Red Bull boss Christian Horner’s dilemma. If they replace Perez with a faster and more consistent driver who can be closer to Verstappen in performance, then they lose the sponsorship money the Mexican driver brings in.

Several of Perez‘s sponsors are pushing for his stay at Red Bull racing. Marca reports that the 34-year-old has also landed some new sponsors from business magnate Carlos Slim’s group. Apparently, the potential addition to Perez’s financial contribution to Red Bull may keep his seat secure for 2025.

Some of the companies that sponsor the #11 driver include Telcel, Claro, Infinitium, Kit-Kat, Banorte, Uber Mexico, and many more. If Perez has to leave Red Bull, all these sponsors will also leave the Milton Keynes outfit.

Helmut Marko: “We have to have two drivers who finish in the points. Max is more than 200 points ahead of Sergio”

“For now the main thing was to win the championship for Max but for our employees it is a disappointment because they will not receive their bonuses, as they… pic.twitter.com/hV3t7N7RNf

— RBR Daily (@RBR_Daily) November 24, 2024

As for Verstappen, Jumbo was his sponsor for around 10 years, a relationship that began during his F3 days. It’s exit is due to developments outside of racing economics.

The supermarket chain’s erstwhile CEO has been involved in a money laundering case, leading Jumbo to pull out of all sports sponsorships. But since their contract with Verstappen ran till the end of 2024, they had to honor it.

What is holding Red Bull to cut off ties with Perez?

Perez has been rather staunch in his claim that he will stay on as a Red Bull driver in 2025 amid the constant reports of the team looking to sack him. This confidence from the 34-year-old indicates that there may be a big financial leverage he holds in his contractual ties with the Austrian team.

There have been reports that Red Bull may have to give a hefty payout amount to make Perez leave the team. The Mexican has a valid contract for 2025, which he signed in mid-2024. Some reports claim that the Bulls may have to pay him a severance amount of $16 million. Meanwhile, some other reports have given even more amplified amounts.

Nevertheless, even a $10 to 15 million payout can shake a team’s finances in the budget cap era in F1. While driver salaries are not part of the cap, teams cannot afford to lose out on such significant amounts which can be beneficial to the team’s long-term plans in the sport.

As a result, Red Bull is trying to negotiate around these complications in Perez’s situation. There has been a notion that the Mexican driver could stay with the team as a third ambassador driver, a role that Daniel Ricciardo essayed in the first half of 2023. Even David Coulthard has a similar dynamic with the Bulls.

In this manner, Red Bull may not lose the sponsorship money, and may even get a better driver in their second race seat. However, this seems easier said than done.