In a recent and somewhat surprising announcement, Red Bull Racing confirmed the extension of Sergio Perez’s contract, securing his place alongside F1’s dominant force, Max Verstappen, until 2026. The decision raised eyebrows throughout the motorsport community, sparking debate as to whether it was a reward for Perez’s improved performance or something else entirely.
According to RTL reporter and F1 expert Felix Gorner, the latter is more likely. At the end of last year’s Formula One season, there was considerable doubt over Sergio Perez’s future with Red Bull Racing. His performance was widely regarded as below par and rumours circulated that the Austrian outfit might even cut ties with Verstappen’s team-mate early.
Improved, but way behind Verstappen
Despite this uncertainty, Perez’s strong start to the current season has seemingly strengthened his position, leading to the surprise announcement of a two-year contract extension.
Commenting on the decision, Team Principal Christian Horner said:
“Now is an important time to confirm our line-up for 2025. Continuity and stability are important for the team. Both Checo and Max are a successful and solid partnership that secured the team’s first double victory in the championship last year.”
However, Horner’s statement glossed over a glaring disparity: despite driving the superior Red Bull car, Perez scored just 285 points to Verstappen’s 575.
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Known for their ruthless approach to driver management – as evidenced by their treatment of former drivers Alex Albon and Pierre Gasly – Red Bull have shown an unusual willingness to retain faith in Perez.
Perez’s contract extension is also a victory for Red Bull Team Principal Christian Horner amid reports of an internal power struggle. Helmut Marko, a prominent figure within Red Bull, has been vocal about his preference for promoting younger talent such as Liam Lawson.
Marko’s critical stance on Perez, including controversial public comments, contrasts with Horner’s approach.
The decision to extend Perez’s contract highlights Horner’s growing influence and preference for stability over radical changes in the rider line-up. Marko’s admission of a “truce” with Horner further underlines the significance of this extension, suggesting a broader strategy to maintain a cohesive team environment as Red Bull navigates internal dynamics and external competition.
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Dr Helmut Marko: Sergio Perez has ‘mental problems’
A manoeuvre by Kevin Magnussen forced Perez into the wall just after the first corner, ending the race prematurely for the six-time Grand Prix winner. Had the Mexican qualified better, he wouldn’t typically starting his races in the middle of the pack, just where such incidents tend to occur on the first lap of a Grand Prix.
Red Bull Motorsport Advisor Helmut Marko believes that Perez’s continued struggles cannot be solely attributed to such incidents.
“It is not the fault of the car, you can see that with Max,” Marko told ServusTV, suggesting that Perez’s problems may be psychological by then saying “I think it’s more psychological.”.
Marko pointed out that Perez’s struggles have been evident since joining the team, and this pattern of performance is worrying. Perez’s qualifying performance for that Monaco race, the Mexican being knocked out in Q1, in which he finished just 37 thousandths of a second behind Alpine’s Pierre Gasly in 15th place, was another example.
“It was close,” admitted Marko, adding that the changing conditions added to Perez’s difficulties.
“But the fact that it is the third time is painful.”
As Red Bull Racing continues to navigate these challenges, the focus on Perez’s psychological resilience will be crucial.The team’s decision to extend his contract reflects a complex mix of financial strategy, internal politics and a belief in his potential to overcome the current hurdles.
READ MORE – Marko: “Perez has mental issues”
Real reason: Financial implications over sporting merit
Felix Gorner, a veteran RTL reporter with deep insight into Formula One, offers a different perspective. He claims that Perez’s contract extension is driven more by financial considerations than sporting merit.
Gorner told sport.de: “The background to Perez’s two-year contract is financial sponsorship commitments that will end up with Red Bull Racing with the Perez package.”
This suggests that Perez’s continued presence in the team is less about his on-track performance and more about the financial benefits he brings.
“In other words, it’s a financial decision to be able to afford a driver as expensive as Max Verstappen in the future,” Gorner continued. The implication is clear: Perez, once a celebrated talent, has now fallen into the role of ‘pay driver’ – a term often used disparagingly in motorsport to describe drivers who secure their seats through financial backing rather than skill.
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The decline of a once-promising career
Despite signing a new two-year contract, Sergio Perez’s recent performances have raised eyebrows within the Formula One community. His continued struggles were highlighted at the Canadian Grand Prix, where he retired in Q1 and only managed 16th place on the grid and then promptly retired from the race the following day.
This pattern of qualifying woes stands in stark contrast to Red Bull Racing’s decisive vote of confidence in extending his contract until 2026.
The notion that Perez, at the age of 34, is now considered a ‘pay driver’ marks a significant shift in his career narrative.
“It’s hard to believe, but Checo Perez has actually become a pay driver in the twilight of his career, and that’s a shame,” concluded Gorner.
Perez’s recent performances have done little to counter this narrative. He currently sits fifth in the Drivers’ Championship with just 107 points, a staggering 87 behind Verstappen. His struggles were epitomised at the recent Canadian Grand Prix, where he started 16th and eventually retired, once again failing to support Verstappen as an effective ‘wingman’.
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The future of Red Bull Racing
As Red Bull Racing looks to the future, the decision to retain Perez underlines the complex interplay between financial considerations and sporting ambition in Formula One.
While Perez’s presence ensures valuable sponsorship and financial stability, the stark contrast between his and Verstappen’s performances continues to fuel debate about the true motivations behind his extended contract.
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As the news embargo ended at 15:30 local time in Canada, Christian Horner confirmed Yuki Tsunoda will remain with the RB team for the next two years. The Japanese driver was rumoured to be living the team the end of last season, as insiders close to the team revealed Christian Horner wanted him out and Liam Lawson in.
Tsunoda’s team mate Daniel Ricciardo, who was brought back by Horner to beef up the Red Bull junior squad following his exit from McLaren, was expected to eventually replace Sergio Perez who at the time was suffering a poor run of…READ MORE ON THIS STORY
With over 30 years of experience in Formula 1 as an insider journalist, I have built trusted connections across the paddock, from race engineers and mechanics to senior team figures. At The Judge 13, I and a handful of trusted colleagues share exclusive Formula 1 news, expert analysis and behind-the-scenes stories you will not find in mainstream motorsport media.
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You might want to set the difference between resign and re-sign. 2 different definitions.