Red Bull’s decision to end their partnership with Sergio Perez has made headlines, not just for the timing but also for the high cost involved, with team advisor Helmut Marko confirming that the Mexican driver’s exit deal cost several million dollars.

“Taking into account the contract, it is an agreement that is acceptable to both parties,” Marko told Sport.de.

When asked if the amount was in the millions, he simply replied, “We are talking about Formula 1 here, yes.”  

Perez’s exit follows a difficult season where his performance dropped sharply after a promising start. Despite starting the 2024 campaign with four podium finishes in the opening five races, Perez’s form declined dramatically and he wasn’t able to reach the podium again after the Chinese Grand Prix.

On top of that, he scored just 49 points over the next 18 races, which made him look very bad, especially after an impressive 2023 season, when he finished second in the championship.

Despite his obvious struggles, Red Bull renewed Perez’s contract mid-season with a one-plus-one-year deal, showing faith in his ability to recover. However, his form didn’t improve.

“Not at first, because he has always hoped to find his old form again,” Marko said when asked if Perez expected to leave.

“After all, he has won five Grands Prix with us and was once vice-champion. However, 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.”

The decision to release Perez was further complicated by the financial burden of his contract. The payout, though significant, was necessary to make way for a fresh start with Liam Lawson, who will partner Max Verstappen in 2025.

“That also immediately opens up plenty of possibilities for the future,” Marko added, pointing to Red Bull’s plans to move forward.  

While Verstappen dominated the Drivers’ Championship in 2024, Perez’s struggles hurt the team’s overall results. Red Bull finished third in the Constructors’ standings, far from their usual dominance, which they are hoping to recover with Lawson next year.