Daniel Ricciardo will reportedly receive a monster salary cut as part of his multi-year contract to join McLaren starting in 2021.
The 30-year-old Australian rattled the F1 grid when his contract with the English team was announced just days after Ferrari confirmed Sebastian Vettel would be replaced by Carlos Sainz at the end of the year.
Details of Ricciardo’s bold steps are now beginning to leak, according to a veteran French Formula 1 journalist.
Ricciardo has enjoyed one of the biggest payment packages in Formula 1 since joining Renault at the start of the 2019 season – but his challenging days for Lewis Hamilton and Sebastian Vettel on the list of top sports recipients now look numbered.
The former Red Bull driver reportedly faces a haircut of around $ 25 million a year in base salary, according to French reporter Marc Limacher.
The report claims Ricciardo was set to produce an amazing 25 million euros (41.5 million dollars) with Renault during the Formula 1 2020 season before the Aussie received a pay cut during the season imposed by the locked coronavirus virus.
Now Limacher claims Ricciardo’s agreement with McLaren is worth $ 17 million per year (10 million euros per year) – less than half of his current agreement.
A salary cut of 15 million euros per year would represent a 60 percent reduction.
However, the fine print in the contract reportedly includes a series of attractive bonuses for the Aussie, including:
– Ricciardo has guaranteed his status as racer No. 1 team
– Ricciardo’s contract is for two years with an option that benefits him for an extension of one year until the end of the 2023 season; and
– Ricciardo can open a series of reported bonus payments starting from 400,000 euros each time he collects championship points up to 1 million euros for each grand prix victory.
The Sun reports that Ricciardo began in 2020 as the third highest paid star in Formula 1, behind only Lewis Hamilton and Sebastian Vettel.
The German, who will leave Ferrari at the end of the season, gets $ 68 million per year, while Hamilton is the top dog with a salary of $ 78 million.
Vettel and Hamilton are both without contracts for the 2021 season, however, Hamilton is widely expected to re-sign with Mercedes.
Red Bull star Max Verstappen is the only other star who can cross the £ 10 million per season limit, with $ 26 million reported.