Hamilton said he was not comfortable negotiating a "big contract" when so many around the globe had lost their jobs to the pandemic.
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As the COVID-19 pandemic continues to grip the world, sporting personalities from across the globe have been forced to take pay cuts. The same can be said for Formula 1 (F1) drivers, including the likes of Lewis Hamilton and Sebastian Vettel. Hamilton’s new contract with Mercedes was a matter of speculation throughout last season. Questions over whether he would be the F1’s highest earner riddled the minds of fans and experts.
Speculations over Hamilton’s new Mercedes contract were rife last season, since the Englishman was on course to a record-equalling seventh F1 championship. That would have undoubtedly skyrocketed his already high market value. Reports claimed that the driver asked for a pay rise to $50 million, but Hamilton played down these claims.
On his previous contract, the British racer was believed to be on $40 million, which came down to over $2 million per race. However, due to the coronavirus pandemic, the season was cut short and there were 17 races instead of 22.
After he and Mercedes CEO Toto Wolff contracted COVID-19, Hamilton agreed to a one-year deal with the German carmaker. The deal was announced in February and a report in news portal Race Fans suggests that Hamilton took a pay cut. He will be given a fee of $30 million for the season, which means a $1 million cut from the previous season. There will, however, be a bonus package, as it is with all drivers.
Having already surpassed former football player David Beckham as Britain’s highest-earning sportsperson of all time, Hamilton is in a position where he can afford to take a pay cut. The British racer said he was not comfortable negotiating a “big contract” when so many around the globe were losing jobs due to the coronavirus pandemic.
Hamilton is not the only one who will take a pay cut. Aston Martin’s Sebastian Vettel will be, reportedly, earning half of what he was during his final season with Ferrari. He and teammate Lance Stroll are to be paid directly by the manufacturer and not the team.
Veteran racer Fernando Alonso is believed to earn more than Vettel this season. The Alpine driver is set to be the third-highest earner this season behind Hamilton and Max Verstappen.
F1 teams have to, for the first time, operate within a budget cap this year. Although that does not cover payment to drivers, there is no certainty if that will remain the case in the future.
