Monster Energy must cough up Hamilton's more expensive salary in 2021'

Mercedes would like to remain active in Formula 1, but is really looking to reduce costs in the sport in the coming years. Lewis Hamilton's million-dollar salary does not fit into that picture, but the team has found a solution for that.

Bigger contract for Hamilton?

With the arrival of Ola Kallenius a lot of questions were asked immediately. Does Daimler still want Mercedes to remain active in Formula 1 and if so, what would be the budget? It is therefore not surprising that Mercedes supports the proposal to reduce costs in F1 with a bearing budget cap, but that is not the only thing.

Where most costs will limited, the salary of the drivers is not included in that budget and drivers can (and will) demand more and more. Lewis Hamilton is expected to receive a salary higher than his current salary for a new contract in 2021, but isn't that crazy if cuts have to be made everywhere else at Mercedes?

Sponsors pay salary

Mercedes has therefore decided to further tighten the tyres with Monster Energy. The energy drinks brand is sponsor of both Mercedes and Hamilton and reportedly already pays ten million euros a year of Hamilton's current salary. Both parties have decided, according to thejudge13.com, to increase the sponsor's share.

In this way, the share of Mercedes can remain the same or perhaps even be reduced with a new deal and it can also keep there organization largely as it is. It is not an unknown construction in F1. For example, the salary of 30 million euros of Fernando Alonso at Ferrari was completely paid by the Spanish bank Santander.