Why It Fell Apart: 10 Surprising Reasons Red Bull Let Go of Sergio Pérez

As Red Bull faces the challenges of the 2025 Formula 1 season, the team is navigating significant changes in strategic direction and addressing the ramifications of an underwhelming 2024 performance. This retrospective examines the pivotal moments that influenced Red Bull’s decision to part ways with Sergio Perez, their efforts to reclaim dominance on the track, and the internal and external pressures shaping their future in the fiercely competitive world of Formula 1.

10. Red Bull’s Changing Strategic Priorities for 2025

JEDDAH, SAUDI ARABIA – APRIL 18: Max Verstappen of The Netherlands and Oracle Red Bull Racing prepares in the garage next to Christian Horner, Team Principal of Oracle Red Bullduring practice ahead of the F1 Grand Prix of Saudi Arabia at Jeddah Corniche Circuit on April 18, 2025 in Jeddah, Saudi Arabia. (Photo by Alex Pantling/Getty Images) // Getty Images / Red Bull Content Pool // SI202504200102 // Usage for editorial use only //

Red Bull entered 2025 with a new strategic focus after losing their dominance to McLaren. Following performance issues that affected driveability, the team implemented a recovery plan including McLaren-inspired brake modifications and a staged upgrade package for the European rounds, culminating in major changes at Imola. Perez’s inability to score consistently while adapting to these technical shifts ultimately sealed his fate, as team principal Horner emphasized that “consistency will be key” in the tight 2025 championship battle.


9. Management’s Tough Negotiations

SPIELBERG, AUSTRIA – JULY 09: Sergio Perez of Mexico driving the (11) Oracle Red Bull Racing RB18 talks with race engineer Hugh Bird in the garage prior to the F1 Grand Prix of Austria Sprint at Red Bull Ring on July 09, 2022 in Spielberg, Austria. (Photo by Bryn Lennon/Getty Images) // Getty Images / Red Bull Content Pool // SI202207090479 // Usage for editorial use only //

The exit process was far from smooth, with negotiations beginning around the Qatar Grand Prix. Despite signing a two-year extension in mid-2024, Perez revealed everything “happened really late in the season.” Red Bull executives reportedly offered up to $16 million as compensation for early contract termination, reflecting the difficult financial implications of their decision.


8. Failed Recovery Attempts

NORTHAMPTON, ENGLAND – JULY 01: Sergio Perez of Mexico and Oracle Red Bull Racing prepares to drive in the garage during practice ahead of the F1 Grand Prix of Great Britain at Silverstone on July 01, 2022 in Northampton, England. (Photo by Mark Thompson/Getty Images)

Despite Red Bull identifying technical issues with Perez’s car and team members apologizing for not finding them sooner, his on-track performance never improved. The team showed uncharacteristic patience with him throughout 2024, but by the Qatar Grand Prix, negotiations for his exit had begun. His inability to recover form ultimately sealed his fate for the 2025 season.


7. Impact on Constructors’ Championship

LUSAIL CITY, QATAR – DECEMBER 01: George Russell of Great Britain driving the (63) Mercedes AMG Petronas F1 Team W15 and Max Verstappen of the Netherlands driving the (1) Oracle Red Bull Racing RB20 lead the field into turn 1 at the start during the F1 Grand Prix of Qatar at Lusail International Circuit on December 01, 2024 in Lusail City, Qatar. (Photo by Mark Thompson/Getty Images) // Getty Images / Red Bull Content Pool // SI202412010399 // Usage for editorial use only //

Perez’s poor form in 2024 directly cost Red Bull their constructors’ title. Scoring just nine points in his last eight races, his underperformance saw the team not only fail to defend their title but drop to third place behind Ferrari, resulting in significant prize money losses and reduced team bonuses.

6. Loss of Team Confidence

NORTHAMPTON, ENGLAND – JULY 03: Max Verstappen of the Netherlands and Oracle Red Bull Racing prepares to drive on the grid prior to the F1 Grand Prix of Great Britain at Silverstone on July 03, 2022 in Northampton, England. (Photo by Mark Thompson/Getty Images) // Getty Images / Red Bull Content Pool // SI202207030646 // Usage for editorial use only //

Despite signing a contract extension through 2026, Red Bull’s leadership lost faith in Perez’s ability to perform consistently. Team principal Christian Horner described his 2024 season as “terrible,” with the team planning to evaluate “all options” despite his contract. Red Bull’s third-place finish in the constructors’ championship behind McLaren and Ferrari was likely the final blow to their confidence in the Mexican driver.


5. Pressure from Potential Replacements

MELBOURNE, AUSTRALIA – MARCH 16: Liam Lawson of New Zealand and Oracle Red Bull Racing looks on prior to the F1 Grand Prix of Australia at Albert Park Grand Prix Circuit on March 16, 2025 in Melbourne, Australia. (Photo by Clive Mason/Getty Images) // Getty Images / Red Bull Content Pool // SI202503160034 // Usage for editorial use only //

Perez’s Red Bull exit was hastened by growing speculation around his seat, with Liam Lawson emerging as a top internal candidate to replace him for 2025. The team’s willingness to promote Lawson, combined with intensified media scrutiny, ramped up the pressure on Perez in the latter part of the 2024 season.

4. Regrettable Contract Extension Decisions

MIAMI, FLORIDA – MAY 04: Christian Horner, Team Principal of Oracle Red Bull Racing, looks on in the garage prior to the F1 Grand Prix of Miami at Miami International Autodrome on May 04, 2025 in Miami, Florida. (Photo by Mark Thompson/Getty Images) // Getty Images / Red Bull Content Pool // SI202505043188 // Usage for editorial use only //

Red Bull’s decision to grant Perez an early contract extension through 2026 backfired dramatically. Team Principal Christian Horner admitted that the June 2024 extension “didn’t work” despite being intended to settle Perez’s mind after a strong start with four podiums in five races. His performance declined immediately after signing, ultimately leading to a mutual contract termination in December 2024.


3. Car Development Issues and Narrow Performance Window

IMOLA, ITALY – MAY 19: Sergio Perez of Mexico driving the (11) Oracle Red Bull Racing RB20 on track during the F1 Grand Prix of Emilia-Romagna at Autodromo Enzo e Dino Ferrari Circuit on May 19, 2024 in Imola, Italy. (Photo by Lars Baron/Getty Images) // Getty Images / Red Bull Content Pool // SI202405190646 // Usage for editorial use only //

Red Bull’s 2024 car was notoriously tricky, with a narrow performance window that exposed Sergio Perez’s struggles. While the team identified and apologized for some setup issues, Perez’s confidence and pace never fully recovered. This mismatch between car development and driver comfort played a critical role in his exit.

2. Poor Performance in the 2024 Season

IMOLA, ITALY – MAY 19: Sergio Perez of Mexico driving the (11) Oracle Red Bull Racing RB20 on track during the F1 Grand Prix of Emilia-Romagna at Autodromo Enzo e Dino Ferrari Circuit on May 19, 2024 in Imola, Italy. (Photo by Rudy Carezzevoli/Getty Images) // Getty Images / Red Bull Content Pool // SI202405190789 // Usage for editorial use only //

Sergio Perez endured his toughest season at Red Bull in 2024, with results falling well below expectations. He scored just 25.8% of Red Bull’s total points and only managed one qualifying win against Verstappen all year. Shockingly, Perez was ahead of his teammate on track just 6.3% of the time.


1. Massive Points Gap to Verstappen

– Red Bull Content Pool

The yawning points deficit between Sergio Perez and Max Verstappen was impossible for Red Bull to ignore. By late 2024, Perez trailed Verstappen by a staggering 251 points, highlighting a persistent performance gap. This imbalance undermined Red Bull’s Constructors’ Championship bid and prompted leadership to reconsider their driver lineup for 2025.

Conclusion:

BAKU, AZERBAIJAN – JUNE 12: Race winner Max Verstappen of the Netherlands and Oracle Red Bull Racing and Second placed Sergio Perez of Mexico and Oracle Red Bull Racing celebrate in parc ferme during the F1 Grand Prix of Azerbaijan at Baku City Circuit on June 12, 2022 in Baku, Azerbaijan. (Photo by Mark Thompson/Getty Images) // Getty Images / Red Bull Content Pool // SI202206130294 // Usage for editorial use only //

Red Bull’s turbulent journey through the 2024 season and the subsequent reevaluation of their strategies underscore the importance of adaptability and foresight in Formula 1. As the team shifts its focus to regain competitive edge in 2025, the lessons learned from Perez’s tenure and the challenges faced provide valuable insights for their path ahead. With a renewed emphasis on consistency and a readiness to embrace change, Red Bull aims to solidify its position and reclaim its status as a formidable force in the championship battle.