Despite ongoing rumors linking Max Verstappen to a departure from Red Bull, especially with Mercedes as a prime contender for his signature, any potential transfer remains uncertain due to contractual constraints. Verstappen’s current agreement with Red Bull, which extends through the end of 2028, gives the team significant control over whether he can join another F1 outfit before 2029, effectively blocking any premature move.

Understanding the Binding Nature of Verstappen’s Red Bull Contract

Rumors surrounding Verstappen’s future have intensified amid Red Bull’s recent struggles with performance levels. While Mercedes and Aston Martin—where he would reconnect with renowned designer Adrian Newey—are frequently mentioned as possible next destinations, Verstappen is still officially tied to Red Bull. He signed this contract shortly after winning his first world championship, locking him in until 2028.

In Formula 1, all driver contracts are regulated by the Contract Recognition Board (CRB), an FIA-established authority with exclusive power over contractual disputes governed by the Concorde Agreement. This setup ensures that any conflict about contract validity is handled solely through this body rather than courts or other entities.

The CRB’s role is formalized through clauses commonly integrated into driver agreements, emphasizing the Board’s exclusive jurisdiction. As stated in one clause:

“Accordingly the parties hereto expressly submit to the exclusive jurisdiction of the Contract Recognition Board with respect to matters to be determined by such Board pursuant to such Clause 7 and in particular expressly exclude the jurisdiction of any competent judicial or other body as regards interim or conservatory measures in that respect.”

Insights from the Alpine and Oscar Piastri Contract Dispute

The procedure and authority of the Contract Recognition Board were spotlighted in 2022 during the Alpine-McLaren dispute over Oscar Piastri’s contract. After signing a deal, teams must submit a sealed, redacted contract along with key contract details to the CRB Secretary in Geneva. These details include the execution date, whether it’s a new or renewed contract, parties involved, contract duration, and any renewal options.

The CRB maintains a register of all valid F1 contracts and issues confirmations to drivers, a prerequisite for securing the FIA Super Licence needed to compete in Formula 1. It is critical that no driver is registered under multiple contracts covering overlapping time periods.

This was underscored by the following passage from the hearing related to Piastri’s case:

“A driver is not entitled to participate in the FIA Formula One World Championship unless he is in possession of Formula One Super Licence issued by the FIA. To be entitled to such a Super Licence the driver’s name has to appear on a Confirmation issued by the Board.”

What Happens if Multiple Contracts Are Claimed for the Same Driver?

If two teams submit contracts for the same driver covering identical or overlapping periods, these are termed “Conflicting Contracts” under Article 7 of the Concorde Agreement. The CRB prioritizes the contract that was registered first, assuming validity of both, and if disputes arise, a Tribunal judges the matter.

As explained in the Piastri case Tribunal:

“Assuming both Contracts to be valid the first in time has priority,”

and

“If there is any dispute as to which has priority a CRB Tribunal is appointed to rule on the issue.”

The Board usually remains inactive unless a conflict emerges, at which point it informs all parties to resolve the dispute through a hearing where the sealed contract is reviewed and a final decision issued publicly.

For Verstappen, since he holds a valid contract with Red Bull, any new contract submission by another team such as Mercedes would trigger a conflict notification from the CRB. Ultimately, it would be Red Bull’s choice whether to allow Verstappen to leave or to enforce the existing contract.

Without Red Bull’s consent to break the agreement, another team’s contract offer alone is insufficient for Verstappen to switch allegiance prior to 2029.

The Historical Lesson from Jenson Button’s Contractual Battle

The situation is not unprecedented. In 2005, Jenson Button faced a protracted contract crisis between Williams and BAR, where he had to pay £18 million (approximately £32 million adjusted for inflation) to exit his Williams deal. That buyout was crucial for him to continue racing with BAR rather than Williams.

Button’s early exit depended entirely on Williams agreeing to the financial terms. Had Williams refused, Button would have been bound to the Grove team for the subsequent season.

This episode highlights how a driver cannot simply disregard a binding contract due to dissatisfaction or competitive reasons; it necessitates approval from the current employer. Reports have suggested that any buyout fee for Verstappen might be around £100 million—a figure likely undervaluing the Dutchman given his significantly higher earnings compared to Button’s at the time.

From Red Bull’s perspective, even a substantial payout like £100 million is a minor factor. The parent company, Red Bull GmbH, reported £3.2 billion in revenues last year, up 16% from 2023, supported by sponsors and prize money, indicating no pressing need to release Verstappen for financial gain.

Why Red Bull Would Retain Max Verstappen at All Costs

Aside from monetary considerations, Red Bull’s reluctance to allow Verstappen’s departure also stems from competitive factors. Losing the reigning world champion would leave the team scrambling for a replacement driver in a stagnant market, with George Russell as one of the few viable candidates.

Moreover, letting Verstappen leave risks strengthening a rival team, a scenario Red Bull plainly wants to avoid. By enforcing the contract, Red Bull maintains leverage over Verstappen’s services and controls the driver market dynamics.

This firm position places Red Bull firmly in control of Verstappen’s future. While the team could permit a transfer, there is no obligation to do so, effectively giving it veto power over any potential moves before 2029.

Our Reader’s Queries

Q. Is Max Verstappen a millionaire?

A. According to Celebrity Net Worth in December 2024, Verstappen’s net worth is about $200 million. He has earned this money through endorsements, investments, and a high-paying Formula 1 salary. Before 2020, however, his salary was not as high as other top F1 drivers.

Q. Did Max Verstappen apologize?

A. Christian Horner shared that Max Verstappen said sorry to the Red Bull team. This was after his crash with George Russell at the Spanish Grand Prix. The incident caused Verstappen to fall from fifth to tenth place at the finish line because of a 10-second penalty.

Q. Who did Max Verstappen lose respect for?

A. Max Verstappen mentioned that he “lost all respect” for George Russell following a stewards’ hearing in Qatar related to a qualifying incident in Formula 1.

Q. Has Max Verstappen apologized to Lando Norris?

A. He doesn’t have to apologize. I’m not looking for one. In my opinion, he doesn’t need to say sorry.

I believe it was good racing, sometimes right at the edge. We talked about it, and we’re both ready to race again.