Christian Horner’s potential departure from Red Bull Racing may result in the 51-year-old securing a substantial settlement.
With more than five years to run on his existing contract, it’s estimated Horner could pocket a pay-out worth more than 50 million pounds.
Horner was relieved of operational duties at Red Bull Racing on Tuesday, with the Milton Keynes workforce advised the following morning.
It brings the curtain down on a 20-year career at the squad, one which netted eight Drivers’ Championships, six Constructors’ titles, and 124 race wins.
Former Racing Bulls team principal Laurent Mekies has been installed as Red Bull Racing’s new CEO in Horner’s place.
But with more than five years left on his current contract, it’s expected Horner’s exit will come with a significant price tag.
According to its most recently filed accounts, the highest-paid director of Red Bull Technology – the company that controls Red Bull Racing – earned 8.915 million pounds in 2023. Believed to be Horner, that increased from 8.044 pounds the previous year and is likely to have risen further off the back of Max Verstappen’s Drivers’ title last year.
That could see Horner entitled to a pay-out of more than 50 million pounds, with The Telegraph suggesting it could rise as high as 60 million pounds once other income is accounted for.
Horner’s contribution to Red Bull Racing went beyond simply managing the team’s operational needs and is understood to have played an integral part in landing several commercial deals for the operation.
Indeed, it’s believed he had a role in Visa and Cash App finding their way to Red Bull’s other F1 operation, Racing Bulls.
Under current financial regulations, as one of the three highest-earning staff members, Horner’s remuneration is understood to have fallen outside the cost cap.
However, it is unclear how Horner’s potential pay-out sits within the regulations, as an exemption for Termination Benefits exists only for the 2021 and 2022 reporting years.
The current cost cap for the F1 2025 season is 140.4 million dollars (approximately 104m pounds), though that will rise to 215 million dollars (159m pounds) next year as a number of currently excluded items fall under the cap.
Since news of his Red Bull exit was announced, Horner has been linked with a swift return to the F1 paddock.
Ferrari is known to have coveted his signature previously, making an approach following Mattia Binotto’s exit at the end of 2022. It’s understood there has been further contact in recent weeks, with Fred Vasseur out of contract in Maranello at the end of this year.
That was also rejected, with Horner telling PlanetF1.com soon after that his “heart and soul” remained with Red Bull.
There have been suggestions that Alpine could be an option too, with the organisation in desperate need of settled leadership.
Following a number of years of seemingly constant change, the Enstone operation has recently announced the signing of Steve Nielsen as managing director, a move revealed by PlanetF1.com.
Horner is known to have a positive relationship with Flavio Briatore, who currently oversees the operation as an advisor to the outgoing Renault CEO Luca de Meo, with the controversial Italian poised to remain in place despite the leadership change.
Aston Martin is another possibility, though former Mercedes engine boss Andy Cowell has recently been installed as team principal in place of Mike Krack.
The Silverstone squad has invested heavily in personnel and facilities in recent years and has made no secret of its desire to challenge for World Championships in the near future.
That was underscored by the signing of Adrian Newey last year, the design legend having been afforded stock in the operation to woo him over from under Horner’s employ at Red Bull.
The precise reason for Horner’s axing from the team he headed for two decades has not been revealed.
It’s been a bumpy ride for the outfit over the past 18 months, with its on-track performances sliding off the back of the dizzying heights it reached in 2023, when it won 21 of 22 races in the year.
Further to that, Horner was embroiled in a scandal at the start of 2024 after allegations were levied at him by a staff member. Though two separate investigations cleared him of wrongdoing, the ordeal did much to weaken his position within the broader Red Bull operation.
Max Verstappen’s future is also thought to be a contributing factor, with performance clauses allowing the Dutchman to leave the team should he sit lower than fourth in the Drivers’ championship following the Hungarian Grand Prix early next month.
Animosity between the Verstappen camp and Horner has existed for some time, with the suggestion that the four-time World Champion is more likely to remain with Red Bull under different leadership.
Finally, changes within the Red Bull ownership structure could have also played a role.
Previously, Chalerm Yoovidhya was the majority owner with 51 per cent of the organisation under his control; 49 per cent of that through TC Agro Trading Company and a two per cent personal holding.
The remaining 49 per cent of the business is owned by Mark Mateschitz, son and heir of the late Dietrich Mateschitz.
Documents filed in Austria in late May reveal that two per cent has been transferred to Fides Trustees SA. The exact reason is unclear but it marks the first significant ownership change in the company’s history and has the potential to change the balance of power.
Yoovidhya was understood to have been a staunch supporter of Horner throughout 2024 and is thought to have played a significant role in saving his job at the height of the early-season turmoil last season.
That support has reportedly waned of late, such that Horner no longer enjoyed the protection from the Thai side of the parent company he once did, leaving him vulnerable as a result.
Whatever the reason for his sacking, it looks set to be a costly decision for the organisation.
