The Formula 1 driver market merry-go-round is often referred to as the “time of fools”, but this year it was more foolish and earlier than ever before.
“The driver market exploded in April – and normally nobody talks in April,” noted Red Bull motorsport advisor Helmut Marko earlier this month.
The rush was triggered by Lewis Hamilton’s premature decision in February, when he announced that he would leave Mercedes at the end of the year and move to Ferrari.
This effectively freed up a top cockpit that many had thought was already secure – and it also meant that the successful Ferrari driver Carlos Sainz suddenly needed a new team.
The picture became even murkier a few weeks later when an investigation was launched into alleged inappropriate behavior by Red Bull team boss Christian Horner towards a female employee. Horner denied the allegations and was cleared by an investigation conducted by a lawyer at the company’s request, but his accuser appealed the decision.
The situation left world champion Max Verstappen’s future at Red Bull uncertain, although it seemed he was set to stay until the end of 2028. Last week, however, he confirmed he would stay until 2025.
Yet the wider driver market had already been shaken up by Sauber’s new owner, Audi. Audi wanted to get a head start on driver selection, stressing that it wanted to be a “player” in the market, not a spectator. That meant pushing its main candidates – Sainz and Haas’ Nico Hülkenberg (the latter now confirmed) – into early signings to help Sauber acquire the best technical staff it believes it needs to climb the grid.
Sauber’s efforts to get decisions from this duo in turn forced other teams and drivers to make decisions.
Red Bull had to weigh up whether to hold on to Sergio Peréz or bring in Sainz, but ultimately opted for continuity. Sainz then seemed to stay with Mercedes as long as possible (which seemed in no rush to resolve the situation) and was also courted by Williams.
The market was in full swing and other drivers were afraid of missing out – especially with the expected newcomer Oliver Bearman (19 years old and signed by Haas this week) from Formula 2. He could be followed by Andrea Kimi Antonelli (17 years old and about to move up to Formula 1 for Mercedes).
This battle for drivers takes place against the backdrop of a very tight F1 grid, where talent is more important than ever and it is unacceptable to lose a few tenths of a second just because someone who does not meet the standards is in the cockpit.
That’s why Mercedes team boss Toto Wolff says the salaries of drivers like Max Verstappen and Lewis Hamilton – around $60 to $70 million – are not absurd.
“Drivers are very valuable,” says Wolff. “Put a great driver in a car and it makes all the difference, especially in a field where there are six or eight tenths (of a second per lap) between P1 and P15.”
While a driver’s advantages can be judged by his influence on the Constructors’ Championship standings – where each place is worth around $10 million – the benefits potentially go far beyond that.
McLaren boss Zak Brown says: “I don’t think there is any prize money aspect that justifies this jump (in terms of prize money alone, i.e. a higher salary). But the more successful you are, the more sponsors you get. You can also attract the best talent because people want to go to the best team.”
At a time when teams are watching every dollar spent because of Formula 1’s cost cap – which mainly limits spending on the performance of the cars – driver salaries are rising. This has put the power in the hands of the drivers and their managers and means salaries are unchecked while the value of the top stars rises.
“I think this will drive up drivers’ salaries because some teams seem to have unlimited checkbooks,” Brown notes.
However, top drivers are in danger of being pushed out of the market by rapidly rising salaries if teams believe they can achieve just as much with an up-and-coming star who would be much cheaper.
Rookies like Oscar Piastri – who likely make less than $10 million per season – are a bargain compared to some more established star drivers who make four or five times that.
Mercedes faces the dilemma of paying a superstar or hiring a young driver next year, with the rise of Formula 2 star Antonelli as Hamilton’s successor drawing ever closer. The difficulty of making such a decision is mitigated by the fact that the team is unlikely to be in contention for the title.
Wolff says: “If you look at the situation at Mercedes, I think we can go for a newcomer because as it stands we are not fighting for the championship and the chances of doing that in 2025 are – if you are realistic – quite slim. So this can be an environment in which a young driver can be trained for the future. The counter argument is that you want to have an experienced driver who will help you catch up faster because he knows how the car should drive.”
While there is a possibility that top salaries could exceed $100 million in the next few years, one driver executive who wishes to remain anonymous believes it is a high price worth paying.
“It’s completely crazy among civilians, but when you look at the impact Lewis has had on Ferrari’s profile and what Max has done consistently with Red Bull, it would be hugely costly if we were to miss out on all those victory photos and incredible images in the future,” says the driver manager.
“The teams see all the numbers and can sign the check without hesitation,” he adds. “They don’t have a gun to their head – they sign the contract because that’s the amount they have to pay.”
