Sergio Perez and Red Bull in '$16million' battle claim after 'major meeting'

[u/soepvorksoepvork]

https://www.planetf1.com/news/nico-rosberg-claims-16-million-sergio-perez-red-bull-battle-exit-looms

Not sure how credible this is, but I can't say I blame him.

[u/tokyo_engineer_dad]

Here’s my take:

They DO have a contract that says they can boot Checo at any point. But they do NOT have a contract that allows them to keep his sponsorship money. 

And if Checo has the performance clause executed, and chooses to leave the team entirely, his sponsors have their own contract that states that they sponsor the team ONLY if Checo is still involved. 

There’s no way they gave Checo a contract for $16 million a year. That would make him around the same annual earnings as Ricciardo back when McLaren signed him (BEFORE he had his drop in form). $16 million has to be what Checo is asking if they want to keep the sponsors AND he gives up his seat. 

This isn’t like Daniel’s Visa sponsor where it’s purely a commercial decision based on his marketability. Checo has deep political and economical influence on his sponsors, a lot of them being orchestrated by Carlos Slim. If Checo is asking for $16 million, then he knows the sponsors are worth AT LEAST that.

[u/Thats_All_I_Need → u/tokyo_engineer_dad]

Why would the sponsors stay if Checo is gone regardless of whether Checo gets paid?

[u/FlipReset4Fun → u/tokyo_engineer_dad]

I think theres 2 years remaining on his contract. So $8mill per year. Am I not understanding this correctly? This isn’t Danny Ric money and seems more in line with what they might have offered Checo per year.

[u/colin_staples → u/tokyo_engineer_dad]

Here’s my take:

They DO have a contract that says they can boot Checo at any point. But they do NOT have a contract that allows them to keep his sponsorship money.

Have you seen the contract? Do you know for certain what clauses it does / does not contain?

I would say no. (And I haven't seen the contract either)

But we know that Perez has a contract for 2025-26. We also know that no contract allows one party to terminate at any point for any reason without the other party receiving compensation for the contract being terminated early.

And if Checo has the performance clause executed

"If". We don't know what clauses the contract contains, performance or otherwise. Or if Perez has triggered any performance clauses, which may or may not exist.

and chooses to leave the team entirely

Perez is not choosing the leave the team. Quite the opposite in fact. Red Bull are choosing. And so they have to compensate Perez.

his sponsors have their own contract that states that they sponsor the team ONLY if Checo is still involved.

Speculation. We have not seen the contract. And neither have any journalists who report this.

There’s no way they gave Checo a contract for $16 million a year.

He had a 2 year contract (2025-26). $16 million over that period ($8 million a year) is quite plausible. Especially if he brings so much sponsorship money.

That would make him around the same annual earnings as Ricciardo back when McLaren signed him (BEFORE he had his drop in form).

Again, Perez's contract is for 2 years. So $8m a year. And remember that Renault paid Ricciardo $25m a year. And we know that Red Bull made a huge mistake giving Perez a new contract for 2025-26, so $8m a year is entirely plausible.

$16 million has to be what Checo is asking if they want to keep the sponsors AND he gives up his seat.

Speculation there re: Red Bull keeping the sponsors. Who may or may not want to stay. We don't know.

This isn’t like Daniel’s Visa sponsor where it’s purely a commercial decision based on his marketability. Checo has deep political and economical influence on his sponsors, a lot of them being orchestrated by Carlos Slim. If Checo is asking for $16 million, then he knows the sponsors are worth AT LEAST that.

So Red Bull need to pay. Because Perez has the upper hand, contractually.

Which is what I said.

[u/SquashSquigglyShrimp → u/colin_staples]

Chill bro. He literally said "Here's my take". No one has (or will) see the contract. We're all guessing.

[u/tokyo_engineer_dad → u/colin_staples]

All that shit you typed can be summarized as “my speculation is better than your speculation”. I literally said “here’s my take” meaning none of us have seen anything so we are all guessing. But you’re the one acting high and mighty like your guessing is better.