Sergio Perez signed a new deal at Red Bull in June. It was a one-plus-one arrangement, which meant 2025 was supposed to be guaranteed with an option for 2026.
Perez started the season at the level Red Bull required. He finished second behind Max Verstappen in three of the first five races, and scored a podium in four of them.
But he started to wobble from Imola onwards. While Verstappen won, he only finished eighth after a Q2 exit.

A Q1 elimination in Monaco followed, and he crashed out of the race on lap one after a tangle with Kevin Magnussen. Red Bull hoped to boost his confidence by extending his deal.
But it hasn’t worked, with Perez slipping down to eighth in the drivers’ standings and potentially costing his team the constructors’ title. Now it’s far from certain that he’ll be in the car next year.
Liam Lawson is in pole position to partner Verstappen, based on reports this week. The New Zealander is auditioning for the drive after replacing Daniel Ricciardo at junior team RB.
Martin Brundle tells Red Bull they ‘can’t just break’ Sergio Perez’s contract amid Liam Lawson rumours
Speaking on Sky Sports F1 at first practice at the Mexico City Grand Prix, Perez’s home race, Martin Brundle suggested the discussion had been oversimplified. He says the team will have to untangle a contractual and commercial web if they want to make a driver change.
The last time the Contract Recognition Board made the headlines was 2022, when Alpine tried to sign Oscar Piastri. He was part of their driver academy but agreed to race for McLaren.
Indeed, the CRB sided with Zak Brown’s squad. Alpine had to look elsewhere for Fernando Alonso’s successor and instead recruited Pierre Gasly.
“Contracts are in place,” Brundle said. “There’s the Contract Recognition Board where they’re all lodged. You can’t just break them. You can agree to go your different ways.
“It’s not easy just to stand here and say ‘oh yeah they’ll change him in a heartbeat’. There are contracts in place. There’s heavy commerciality involved with that.”
Sergio Perez leaves reporter ‘gobsmacked’ with interview answer at Mexico City Grand Prix
Much will depend on the specifics of Perez’s contract. Only he and Red Bull will know the details for sure, but multiple outlets have pointed to the existence of a vital break clause.
Apparently, Perez is in breach of contract because he fell more than 100 points behind Verstappen before the summer break. The team protected themselves by inserting certain performance requirements into their agreement.
During his interviews, Perez has consistently expressed confidence that he’ll remain with the team. But he also accepts that he’s underdelivered.
Perez left one reporter ‘gobsmacked’ when he said he’d had a ‘terrible’ season. He was praised for a ‘refreshingly honest’ take, and clearly knows a huge improvement is required.
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