Sergio Perez’s reputation took a massive hit in 2024 because of his staggering performance deficit to teammate Max Verstappen, which directly contributed to Red Bull falling back in the Constructors’ Championship. Now, the Mexican driver is set to take a financial beating, too, with a clause in his recently signed contract forcing him to make personal budget adjustments.
In 2024, when Red Bull handed Perez a multi-year deal midway, many were astounded. His performances were so bad that they warranted a sacking, but the team kept their faith. However, there were certain stipulations.
One of them included him taking a pay cut from his $14 million salary if he finished 150 points or more behind Verstappen. Perez had over a dozen races to rectify that number from when the deal was signed, but now, with just three races left until time runs out, the 34-year-old is 242 points behind.
Multiple sources, including veteran photojournalist Kym Illman, confirmed the presence of this clause. Illman even spoke about it in a recent video. “Of course, these are put in place to keep a driver motivated and focused. After all, big dollars are at stake and teams cannot afford to have drivers slacking off,” the Aussie revealed.
Perez can’t reduce the 242-point deficit to within 150. For that, he would have to outscore Verstappen by 92 points or more in three weekends, which is out of the question with only 86 maximum points available. Red Bull, as a result, will have no choice and will likely not feel too bad about cutting his pay considering how much he cost the team in 2024.
Perez is not worried about getting sacked
Of course, there is one way Perez could avoid the pay cut — getting fired. Rumors suggest that Red Bull has considered this, which wouldn’t be surprising given their meticulous evaluation of Liam Lawson’s performances for the team.
Perez, however, has insisted multiple times that he will be part of the grid in 2025. While it could seem like big talk to ones only evaluating his performances, there are off-track factors that help the Guadalajara-born driver immensely.
A new sponsorship deal for Perez may see him stay at Red Bull despite struggles.
Perez already has many sponsors from billionaires Carlos Slim and Interprotección. They are said to take care of Perez’s salary, plus transfer around $30 million annually to Red Bull.#F1 #RedBull pic.twitter.com/eiSK5B0ACc
— F1Reports (@F1Reports_) November 12, 2024
Perez is very popular in Mexico and brings in millions of dollars into the team with sponsorships from companies owned by Carlos Slim, one of the richest men in the world. Plus, Marca recently claimed that he has secured another personal sponsor, who is ready to dish out $40 million a year to Red Bull — a figure very difficult to turn down.
As such, his nonchalance is not surprising, and Perez will probably line up alongside Verstappen once again next campaign.
