Red Bull’s Bold Bet: Sergio Perez’s Two-Year Extension and Its Ripple Effects on F1

The unexpected two-year contract extension for Sergio Perez with Red Bull Racing will have significant ripple effects, as analyzed by Crash.net.

Sergio Perez has cemented his position in Formula 1 by signing a new two-year contract, demonstrating Red Bull's significant confidence in the Mexican driver.

In anticipation of the upcoming Canadian Grand Prix, Red Bull revealed that they have chosen to extend the contract of their 34-year-old driver, securing his position alongside Max Verstappen for the next two years.

What impact will this decision have on Red Bull and the other teams in the F1 lineup?

Red Bull's confidence in Sergio Perez

This latest agreement represents Red Bull's strongest vote of confidence in Perez.

In a press release, Red Bull team principal Christian Horner emphasized the need for "continuity and stability" as Formula 1 approaches its regulatory changes in 2026. The team has secured this by signing Perez to a two-year deal.

This could potentially be Perez's final contract in Formula 1, but it provides him with much-needed stability and significantly lessens the pressure he faces.

With Perez no longer having to anxiously check who's poised to take his place and external distractions minimized, Red Bull is optimistic that he will now have the liberty and self-assurance to perform at his peak.

A recent decline in performance has raised concerns about whether Perez might experience another slump and if he is still the best fit for Red Bull. However, the duo of Perez and Verstappen has successfully won five out of the last six available world championships and is likely to win two more this year.

Although facing growing competition from their Formula 1 adversaries recently, Red Bull finds no justification for altering their approach.

Another opportunity closes for Carlos Sainz

With Red Bull choosing to extend Perez's contract, Carlos Sainz faces another setback in finding a new team. This comes after he lost his spot at Ferrari to Lewis Hamilton.

Carlos Sainz, once part of the Red Bull junior program, was considered a potential candidate to replace Perez at Red Bull. Horner acknowledged that Sainz was indeed being considered for the position.

Despite his efforts, the Spaniard still hasn't secured a spot with Red Bull. Now, he must evaluate his choices and make a significant decision regarding his future.

Carlos Sainz was reportedly holding off on making any commitments to other teams, such as Sauber/Audi and Williams, until Red Bull decided on their driver roster for the 2025 season.

It appears that one of the two teams is now the top contender for Sainz, as Mercedes seems inclined to advance their highly-regarded young talent, Andrea Kimi Antonelli, from Formula 2.

Setbacks for Daniel Ricciardo and Yuki Tsunoda

In addition to Sainz, Daniel Ricciardo and Yuki Tsunoda have been passed over as well.

The duo races for Red Bull's affiliated team, RB, and have each been suggested as potential replacements for Perez at various times.

Certainly, Ricciardo was considered the leading candidate for Red Bull to replace Perez if Perez underperformed this year. However, Ricciardo's own performances in 2024 have dashed any hopes he had of a triumphant return to the main team.

It will be difficult for teammate Tsunoda to accept. The 24-year-old driver from Japan has shown excellent performance this season, demonstrating the steady and mature racing skills that were previously missing in the early stages of his Formula 1 career.

Up to this point in the year, Tsunoda has performed better than Ricciardo and might feel it is unfair that he is not being considered for a Red Bull F1 seat in 2025.

Given that there appears to be no opportunity to join the senior team until at least 2027, might Tsunoda now explore other opportunities outside of the Red Bull organization?

Has Red Bull increased their efforts to retain Max Verstappen?

Extending Perez's contract might be interpreted as a move to satisfy Verstappen and his influential supporters.

Even though Verstappen is under contract with Red Bull through 2028 and has consistently expressed that he plans to stay, rumors about his future persist due to Mercedes' open interest in him.

Verstappen has a good relationship with Perez and is confident he can outperform him. If he has a competitive car, Verstappen is a strong contender to win the championship this year and in 2025. Over time, Perez appears to have come to terms with his role as Verstappen’s support.

Why would Red Bull take the chance of upsetting their team balance by introducing a new, untested driver alongside Verstappen? A driven Sainz would come in eager to demonstrate his skills, much like ambitious young talents like Lando Norris or Oscar Piastri.

Red Bull is fully aware of the capabilities of Verstappen and Perez, and altering the driver lineup at this point would introduce an unnecessary risk that the team can easily avoid.

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