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Hamilton now facing rush to sign new deal after driver salary cap agreed

Hamilton now facing rush to sign new deal after driver salary cap agreed

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Hamilton now facing rush to sign new deal after driver salary cap agreed

Hamilton now facing rush to sign new deal after driver salary cap agreed

Formula 1 is set to introduce a driver salary cap from 2023 following unanimous approval from all the teams which could have significant ramifications for Lewis Hamilton.

GPFans understands an exact figure has yet to be determined, although it is believed a total of $30million combined for a team's two drivers is likely to be the bar. The teams will then determine its own split.

The plan was discussed during Monday's F1 Commission video conference call involving FIA president Jean Todt, outgoing F1 CEO Chase Carey and successor Stefano Domenicali, as well as representatives from the 10 teams.

Although the proposal was universally agreed upon, the exact details have yet to be finalised. Once achieved, they will then be put forward to the World Motor Sport Council for ratification.

The decision would now appear to advance Hamilton's talks with Mercedes if he is to sign a new multi-million-pound contract, while it also potentially scuppers the possibility of the 35-year-old simply signing a one-year holding extension to his current deal.

Mercedes motorsport boss Toto Wolff has previously made clear he and Hamilton have yet to find the time to sit down and discuss a new contract, although there was no rush to do so given the relationship between the two and the desire of the six-time F1 champion to continue.

For Hamilton, it is now a question of when the details of a driver salary cap are finalised.

If Hamilton signs a new three-year contract up to and including 2023 before the cap becomes part of the regulations, Mercedes would be obliged to honour that contract for its duration.

If he does so afterwards, while he would be paid the new terms for 2021 and 2022, he would then be capped for 2023.

As it is understood Hamilton currently earns in the region of £30million [$38m] per year, the drop in salary for 2023 would be considerable given the combined two-driver total could be $30m [£22.7m].

A potential one-year extension on current pay, that would then have allowed Hamilton and Wolff more time next season to discuss a longer-term deal from 2022 onwards, has also been mooted, only for the impact from '23 to kick in.

Wolf has previously expressed a desire to avoid that scenario. He said: “We are in a new world and COVID really has changed the way we do business and the environment.

“I think everything should be done this year. I don’t want to go into any other negotiation mid-year next year and drag it on again.

“We all need to be concentrated on our job - Lewis driving, me running this team and Ola [Kállenius, Daimler chairman] turning the big wheel.”

The F1 Commission has also agreed to a cap on the salaries of the three highest-paid team members outside of the drivers. In many cases that is likely to be a CEO, team principal and technical director.

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Comments (3)

TcE0

Without fact checking the article, my observation is that Lewis doesnt add value when the car is consistently the fastest over a season, that Bottas could have won if Lewis hadn't rather tells that Lewis is actually a luxury they dont have to pay for. Ferrari would welcome him and pay anything he wants. As for allegedly looking to beat a deadline that would result being paid significantly less, sounds like a Tory tax Dodger. Speaking of taxes. He doesnt pay any because he domiciles in havens. None of his salary will actually pay into taxes to help hungry black kids back in Stevenage. But it will allow him to bling up his jet plane that he avoided paying taxes on. He doesnt need that salary. He doesnt earn it. Yet Mercedes will doubtless pay it any way. I say dump Lewis and bring in George Russell.

3 4  Reply
David

That's a stupid decision. Like Footballs cap of the 1950s. There will be ways round it. I guess if a no hoper like France Mole has a rich daddy who pays $90M fo drive the no 2 car they can pay Louis Hamster $120M to drive the no 1 car keeping to the $30M cap. That way Moley can maybe get a top fifteen finish while Louis wins both Constructors and Drivers Championship single handed.

Nothing at all is wrong with paying drivers shed loads of money, ( unless they drive round at the back complaining the sponsors engine has no power) big problem with no hopers buying a drive.

2 0  Reply
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