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Red Bull negotiating Sergio Perez exit with compensation as Liam Lawson eyes F1 seat: Report

Rumors around Sergio Perez's Red Bull exit have been floating around the paddock since the 2024 Belgium GP. However, with the season coming to an end, reports suggest that Checo is likely to be dropped from the seat, with Liam Lawson emerging as the favorite to replace him. The Mexican still has a contract in place though, with Red Bull reportedly negotiating the terms with him.

Sergio Perez signed a new contract with Red Bull midway through the 2024 season. Checo’s previous contract was bound to end after the current season. The new contract was signed until the end of the 2026 season, which means the Mexican still has two years left on his deal.

According to sources including Telegraaf.nl, Sergio Perez will continue at Red Bull and fulfill the ambassadorial role. The Milton Keynes outfit will honor the timeline of his contract if the ambassadorial role negotiations succeed. However, sources also suggest that Checo will be financially compensated for losing his full-time seat.

Sergio Perez’s exit rumors started during the mid-season break, as Red Bull allegedly wanted to put Daniel Ricciardo in the Mexican’s seat. However, a reported intervention from Liberty Media kept Perez at Red Bull. Soon Ricciardo himself was sacked for Liam Lawson, raising the question of whether the New Zealander could replace Checo.

According to recent reports, Lawson is the first line to take Perez's place at Red Bull, with Isack Hadjar replacing the New Zealander in the junior team. Perez's subpar performance, with only 152 points on board, is arguably the reason behind Red Bull losing the constructor's championship.

Christian Horner reveals why Sergio Perez was offered the contract extension

Sergio Perez started the 2024 campaign strongly with Top 5 finishes in the first six races, including four podiums. However, the Red Bull RB20 started leaking pace and Checo's performances were nowhere at his level from the start of the season. However, by this time, Perez was already offered a contract by Red Bull.

F1 Grand Prix of Qatar (IMAGE: Getty)
F1 Grand Prix of Qatar (IMAGE: Getty)

Christian Horner recently said, (via Motorsport)

“Obviously, at the time (start of the season), Sergio was performing extremely well. I think he had four podiums in the first five races and, in order to settle his mind and extend that run of form for the rest of the season, we elected to go early - which obviously didn't work. That's just life sometimes.”
He continued, “We've got two talented drivers in VCARB [RB], so until the situation is clear with Sergio and what he wants to do, everything else is purely speculation.”

The F1 community was shocked at the time, as Checo was under consideration to be sacked midway through the season. The Mexican, however, came out with a contract extension in hand.

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