The massive compensation package Red Bull must pay Checo Pérez

Mexican driver Sergio 'Checo' Pérez has ended his working relationship with Red Bull Racing. The decision was a mutual agreement between Checo and the team, explains Infobae.

"After four successful seasons together and following the conclusion of the longest Formula 1 season in history, Sergio Pérez and Red Bull Racing have agreed to part ways in 2025," says the official statement, according to Marca.

According to Sport, the team will have to pay the full amount for the year remaining on his contract, which was originally set to expire at the end of 2025. The amount, according to this source, is expected to be $14 million.

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Checo Pérez said, as reported by Marca: "I am incredibly grateful for the past four years with Red Bull Racing and for the opportunity to compete with such an amazing team. Driving for Red Bull has been an unforgettable experience and I will always fondly remember the successes we achieved together."

With the team, Checo claimed victory at the Monaco Grand Prix and secured two wins at the Azerbaijan Grand Prix, earning him the nickname the 'F1 King of the Streets'. He also helped Red Bull secure two Constructors’ titles in 2022 and 2023 and ensured the team’s first-ever one-two finish by ending as the drivers' championship runner-up last year.

Checo Pérez’s departure from Red Bull Racing also marks the end of his participation in Formula 1. According to Infobae, the Mexican driver will no longer be part of the Formula 1 grid. While there were rumours that he might remain as a driver, his father Antonio Pérez Garibay has confirmed his retirement.

"Today marks a total retirement; there's nothing more. There’s no 'plan B,' no 'plan C,' this was the plan, and today, at this moment, he is closing the chapter on Formula 1 just as he closed it before joining Red Bull," said Pérez Garibay in an interview with Foro TV.

The driver’s father also emphasised that Checo will now prioritise his family and that he's not worried about what the future holds. The decision was made consciously, he says, weighing up all the positives and negatives.

According to Marca, Checo will be replaced by Liam Lawson, a 22-year-old New Zealand driver from the Visa RB junior team. Lawson will take the seat as Max Verstappen’s teammate in the second Red Bull car.

As the same newspaper recalls, Checo has cemented his name in the history of Mexican Formula 1. He surpassed Ricardo and Pedro Rodríguez, the two great pioneers of the sport in the country, leaving behind a significant legacy for Mexico.

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