Red Bull Stuck in $17 Million Worth Catch-22 With Sergio Perez’s Seat

Red Bull’s decision to retain Sergio Perez despite the Mexican’s underwhelming form is still being questioned by the fans. Some reports suggested that it was Liberty Media who intervened and convinced the team to retain him because of his massive popularity. Joe Saward has now come out to unearth the secret behind Perez’s retention.

In his blog — Green Notebook — Saward wrote, “Dropping him [Perez] is still an option, but he is hugely popular in the Americas, where a lot of Red Bull is drunk and sponsorship worth $17 million is at Red Bull because of him. Red Bull bosses say (quietly) that they will bench him if he does not get better.”

: Ralf Schumacher claims Sergio Perez’s sponsorship money is crucial for Red Bull’s budget, aiding in covering Max Verstappen’s $70 million salary. Perez’s sponsors include Disney, Telcel, and Mobil. Despite recent struggles, a contract extension for Perez is reportedly… pic.twitter.com/QnUKO8lKk9

— F1 Naija (@f1_naija) June 3, 2024

Perez is a superstar in North America and brings in immense sponsors for Red Bull. The team’s sponsors include brands like Disney, Telcel, Mobil, Claro, Nescafé and KitKat.

Even if Perez’s seat is given to someone like Liam Lawson, there is no guarantee that Red Bull will win the championship, especially given the current state of the RB20 in which even Max Verstappen struggles. Saward explained how letting Perez go without any guarantee of securing the championship would further hurt the team financially.

Not only will the prize money be reduced, but the Milton Keynes outfit may end up losing Perez’s sponsors as well. Since Red Bull find themselves in such a Catch-22 situation, the F1 pundit added, “The problem with this argument is that racing people like winning, and even if the books balance, the team does not want to be second.”

Kym Illman’s take on Perez’s future

As per the reports, Helmut Marko and Christian Horner wanted to replace Perez until Liberty Media convinced them not to. Illman now suggests that Red Bull might drop Perez after the Mexican GP.

He said, “There’s a chance after Mexico they’ll say, right, if Sergio’s not doing well, perhaps they’ll take Sergio out because he’s fulfilled his excitement with the Mexican fans. Put Daniel in, Liam might get the early drive there.”

Regardless, it seems difficult for Perez to retain his seat next season. Red Bull have some talented drivers in the wings like Liam Lawson and Isack Hadjar, who are eagerly waiting for their opportunity.