Red Bull’s monster payout to get rid of Perez as replacement emerges

Red Bull will have to pay a massive amount to get rid of Sergio Perez as speculation mounts that the team has settled on his replacement.

Sergio Perez has two years left on his F1 contract but there is growing doubt he’ll be on the start line next season as Red Bull held an audition of sorts to find his replacement.

Perez finished eighth in the drivers standings, 285 points behind teammate and world champion Max Verstappen.

Red Bull extended the Mexican’s contract until the end of 2026 earlier this year but his form, particularly in qualifying, fell off a cliff in the second half of the year.

Recent reports suggest it’s a matter of time until Perez is sacked.

Watch every ball of Australia v India LIVE & ad-break free during play in 4K on Kayo | New to Kayo? Get your first month for just $1. Limited time offer.

Team principal Christian Horner made the unusual move of declaring Red Bull had given Perez the choice to continue or retire, leaving the decision up to the driver.

The first day of postseason testing was held in Abu Dhabi on Tuesday and the two drivers for Red Bull’s junior team VCARB, Yuki Tsunoda and Liam Lawson, were put through their paces in an audition to be Verstappen’s teammate.

After completing his fourth year with VCARB, Tsunoda finally got his first chance to drive Red Bull’s F1 car in a testing session and posted the 17th fastest lap time of the day.

Ferrari’s Charles Leclerc was fastest, Carlos Sainz was second fastest in his first hit out for Williams, while Lawson was 13th quickest in the VCARB as the Kiwi completed a whopping 159 laps in a marathon day of testing.

Who will be Max Verstappen’s teammate in 2025? (Photo by Mark Thompson/Getty Images)

Australia’s Jack Doohan was eighth fastest in his Alpine. But fresh off winning the constructors’ championship, McLaren’s Lando Norris and Oscar Piastri weren’t pushing too hard, finishing 16th and 19th fastest respectively, out of 23 drivers.

Lawson replaced Daniel Ricciardo for the last six races of the season and the fact VCARB haven’t yet confirmed who will be driving alongside Tsunoda next season has increased speculation the 22-year-old New Zealander is the frontrunner to replace Perez at Red Bull.

F2 runner-up Isack Hadjar is a Red Bull junior and is a candidate to take the spot at VCARB if Lawson is promoted to Perez’s Red Bull seat.

Former F1 world champion Nico Rosberg believes Perez won’t want to walk away from his contract without a hefty payout.

The 2016 champion told Sky Sports: “All the rumours suggest that he’s on his way out, but he hasn’t confirmed it yet, because he does have a contract apparently for next year.

“We’ve heard rumours it’s around $16 million (A$25 million) there at play. He wants his money at least, so he’s not going to go away that easily. And I think there’s a bit of lawyer discussions going on at the moment.

“Who should replace him? Yeah, it’s such a hard decision, and the options are not so fantastic also because of a lack of experience on Lawson’s side.

Liam Lawson is the frontrunner to replace Perez. (Photo by Mark Thompson/Getty Images)

Yuki Tsunoda finally got a drive in Red Bull’s car. (Photo by Mark Thompson/Getty Images)

“But I guess the rumours are, again, that they’re going to go for Lawson, which is the new driver that they brought in just recently in the Racing Bull’s car.

“And, yeah, I mean, that’s not an obvious one either because against Yuki Tsunoda it’s not like he’s been like on a different planet, he’s been there or thereabouts. But I guess that’s the gamble they will take, and they should be taking Red Bull.”

Paying drivers out of their contract is hardly ideal but not uncommon in F1. McLaren paid Ricciardo around A$24 million to sack him when he had one year left on his deal.

McLaren boss Zak Brown said at the time the team “had to write a big cheque” to get rid of Ricciardo and he would try to make future driver contracts more flexible in the team’s favour.

F1 commentator Marin Brundle said Perez’s year reminded him of Ricciardo’s final moments in the sport, where a sacking appeared inevitable.

“I feel the same way about Sergio as I did about Daniel Ricciardo, actually,” Brundle said on Sky Sports.

“I have the utmost respect for the person and the driver and the victories he’s had and some of the great overtakes and all the things we’ve seen Sergio do.

“Sometimes in subpar cars, as well, he’s won races without the fastest car on the track. Total respect.

“But I’ll be slightly relieved when it’s over. It must be purgatory for him at the moment.

“He’s lost his mojo, he’s lost his way and all the pressure that’s being heaped on that, it must be (difficult).

“To turn up to the track every day must be painful.”

Sergio Perez's career is fading like Ricciardo's did. Photo: Getty.

Brundle noted there is no obvious replacement for Perez, adding Red Bull would be cautious of blooding a young driver too soon, given the struggles Alex Albon and Pierre Gasly had earlier in their careers sharing the garage with Verstappen.

“Red Bull are paying the price for having the brilliance of Max Verstappen in the team,” Brundle said. “They don’t really have the obvious solution.

“For me as a driver, to be able to go in against the guy who’s won four world championships and is well seasoned … he’s been in that car for a long time.

“That car is almost … not developed around him, but he’s been a massive part of developing that car and understands it very well.

“When you see all the data that he brings in, for me as a driver to be alongside that, to be able to learn from him and have all that access, I think that’s what’s exciting for me about the opportunity … if that opportunity was to come in the future.”

Ricciardo’s F1 career appears over but Cadillac joining the grid as the sport’s 11th team could open the door for a return.

The 35-year-old has also been linked to a move to Toyota, with the manufacturer reportedly willing to do whatever it takes to lure Ricciardo out of retirement.

Toyota has strong motorsport roots around the world, featuring in NASCAR and, as of 2026, will join Australia’s Supercars Championship with its GR Supra.

Originally published as Red Bull’s monster payout to get rid of Perez as replacement emerges