Red Bull and Max Verstappen make a smart move with new contract by dodging possible salary cap for F1 drivers
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Max Verstappen
Max Verstappen broke Mercedes domination in Formula One claiming the 2021 World Championship title. After multiple wheel-to-wheel duels, he clinched his maiden title on the last race of the season in Abu Dhabi. And Red Bull Racing has awarded their prodigal driver a contract extension with a massive raise.
Verstappen has signed a new contract with his team that will see him stay with the Austrian team until the end of the 2028 season. The driver will reportedly earn around $53.3 million in a season making him the joint-highest earner on the grid alongside rival Lewis Hamilton.
With the new contract, Red Bull have tied down Max Verstappen through his prime and given him a contract that equals the 7-time World Champion Hamilton. With the Dutchman yet to race through his prime, the new contract seems to be a masterstroke by Red Bull.
Although critics may say the new contract decision was rushed or that Verstappen does not deserve the Multi-million dollar salary, the news was smartly crafted by his team and manager Raymond Vermeulen. With Formula 1 is trying to implement salary caps, the decision seems to be one of the best deals for Red Bull
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Max Verstappen contract a win for Red Bull
After an epic season where the Dutchman shared a thrilling contest with Mercedes’s Lewis Hamilton, the 24-year-old made a last-lap overtake after a controversial decision by the then Race Director Micheal Masi. But the noise has died out and Max will be defending his title as the new season unfolds.
Formula One has implemented cost caps to all constructors ahead of the 2022 season. All teams have a total of $140 Million which can be utilised on building and manufacturing of the car and Power Units. And Formula One seems to make the sport more cost-effective by implementing Salary caps to driver salaries.
Formula One drivers have been known to live a lavish lifestyle and with every driver raking in millions of dollars per season, the sport has come into the limelight of being a ‘Classist’ sport. Drivers have been called out to earn millions and live in Tax havens like Monaco. Teams have also been known to say new talent by tempting them with shiny contracts. And hence, Formula One is looking for a solution.
With the new contract, Red Bull need not worry if the Salary cap is imposed as the team has negotiated the deal beforehand. The team has committed its interest in Verstappen’s hands and will focus on him to secure more titles in the future. But if the salary cap is introduced in the coming six years then the Dutchman’s contract will no longer be negotiable.
Also Read: Why Max Verstappen’s long-term association with Red Bull could turn out…
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Tejas Venkatesh
(366 Articles Published)