Four-time world champion Max Verstappen has signed a four-year contract extension with Red Bull Racing worth a basic salary approaching £70million a year.
With win bonuses included, the 28-year-old Dutch driver could earn in excess of £100million per annum. That income puts him on the same footing as Lewis Hamilton at Ferrari, who remains Formula One's top earner at the age of 41.
The deal keeps Verstappen at Red Bull beyond 2028, extending his previous contract which he had previously indicated would be his last. The announcement comes ahead of his home race at the Dutch Grand Prix in Zandvoort this weekend.
Circuit Zandvoort, located in the sand dunes along the North Sea coast of the Netherlands, hosts the annual Dutch Grand Prix. Red Bull Racing, based in Milton Keynes in the United Kingdom, is funded by Austrian energy drink company Red Bull GmbH, based near Salzburg.
Interest from Rival Formula One Teams
The agreement ends interest from rival constructors who had explored securing Verstappen's services. As revealed by Daily Mail Sport, Verstappen held face-to-face discussions with McLaren team principal Zak Brown in June.
Brown decided to remain loyal to his existing lineup of world champion Lando Norris and Australian driver Oscar Piastri. The McLaren boss also doubted whether Verstappen would fit into the British team's environment.
Interest from long-time suitors Mercedes also dried up following the emergence of championship leader Kimi Antonelli. The Italian driver is considered the future of the German constructor.
Verstappen chose to maintain his commitment to Red Bull, the organisation that nurtured his early career. Red Bull handed him his Formula One debut as a 17-year-old prodigy at Toro Rosso, their junior feeder team based in Faenza, Italy.
Ferrari Unpredictability and Exit Clauses
Options elsewhere were limited, and Verstappen rejected potential interest from Ferrari due to concerns over the Italian team's operational unpredictability. Ferrari, based in Maranello, Italy, is the oldest team in Formula One history.
The contract extension also puts an end to speculation that Verstappen might retire from Formula One over his frustration with the sport's move to half-electric engines this season. Formula One introduced new power unit regulations requiring an equal energy split between internal combustion and electric power.
However, Verstappen retains a secret exit clause allowing him to leave the team under performance criteria if Red Bull fails to provide a competitive car over the coming seasons.
Tense Salzburg Contract Negotiations
Verstappen admitted he initially doubted his future in Formula One when talks began. He revealed he told Red Bull team principal Laurent Mekies after early races: "Don’t come to me with any kind of questions about the future because I don’t even know if I want to stay."
Addressing the process, Verstappen added: "Honestly, we always kept it very open."
Verstappen and Mekies maintain strong relations, but negotiations involved friction with Red Bull corporate leadership in Salzburg. Verstappen's agent Raymond Vermeulen told executives his client was invaluable, while Red Bull argued Verstappen would not have achieved his titles without the team. Red Bull ultimately knocked back the driver's largest pay demands.
Commitment to Motorsport Pinnacle
Verstappen, a 71-time race winner, affirmed his commitment to competing at the highest level. He said: "Even if I’m not entirely happy with how the package is, I still love racing. This is still the pinnacle of motorsport, so I still want to be here."
He added: "I was closer to retiring than changing teams."
The signing is a major victory for Mekies, who took over as team principal from Christian Horner last year. Mekies said: "He’s a lot more than the fastest driver in the world for us. He’s the central point of the team. He’s one we always refer to for all the strategic decisions we are making, and to know that he’s going to be with us in order to build that next winning cycle is phenomenal."
