Red Bull Racing’s high-stakes decision to part ways with Sergio Perez ahead of the 2025 Formula 1 season didn’t come cheap. According to Helmut Marko, the team’s advisor, the financial toll of terminating Perez’s contract early ran into “several millions,” marking a significant expense for the Milton Keynes-based outfit.
Perez, whose contract had been extended through 2026 just months earlier, was dropped following a lackluster 2024 season. His replacement, Red Bull junior Liam Lawson, steps into the seat alongside Max Verstappen, signaling a fresh direction for the team.
Perez’s Decline and Red Bull’s Painful Choice
Despite a strong start to the 2024 season, including four podium finishes in the opening five races, Perez’s form spiraled downward in the latter half. The Mexican driver managed only 21 points in the final 10 rounds, trailing an eye-watering 285 points behind Verstappen, who clinched the Drivers’ Championship with two rounds to spare.
Perez’s struggles not only affected his own standings but also contributed to Red Bull slipping to third in the Constructors’ Championship—a rare blow for the reigning champions. Speaking about the decision to let Perez go, Marko noted:
“He did not find that form again, and then it was judged that in this environment, that resurgence is not going to come either and that a farewell was best. That also immediately opens up plenty of possibilities for the future.”
The Cost of Change
Marko confirmed that the financial implications of Perez’s departure were significant, given the early termination of his contract. When pressed on whether the severance totaled “several millions,” Marko admitted:
“We are talking about Formula 1 here, yes…”
Despite the high costs, Marko described the agreement as “acceptable to both parties,” emphasizing that it was a necessary step for the team to realign its ambitions for the upcoming season.
Perez’s Uncertain Future
The decision came as a blow to Perez, who remained optimistic until the final race in Abu Dhabi that he could recover his form. Reflecting on Perez’s mindset, Marko revealed:
“Not at first, because he has always hoped to find his old form again. After all, he has won five grands prix with us and was once vice-champion [in 2023].”
As of now, all 2025 seats have been filled, leaving Perez on the sidelines for at least one season. However, Marko suggested that Perez could find a route back into Formula 1 with the introduction of new technical regulations in 2026.
“I think he still hopes for Formula 1. But if he sits on the sidelines for one year, then, of course, as an experienced driver, there can always be new opportunities for him.”
What’s Next for Red Bull?
With Liam Lawson promoted to the senior team, Red Bull is banking on fresh energy to help them regain their dominance. Meanwhile, Verstappen continues to lead the charge as the team looks to rebound from an uncharacteristically challenging season.
The move underscores Red Bull’s relentless pursuit of excellence, even at great financial cost. As for Perez, his F1 journey may be on pause, but his five race wins and vice-champion status serve as a reminder of his capabilities—should the right opportunity arise.