The startling details behind Lewis Hamilton's £352 million Ferrari contract

Lewis Hamilton's chapter at Mercedes ended with a fourth-place finish at the Abu Dhabi GP. The Brit now looks forward to some rest, before embarking on his next adventure in Formula 1 at Ferrari.

Hamilton’s arrival at Ferrari in 2025 is going to be one of the biggest talking points of the sporting year – with the superstar driver expected to help restore the Scuderia to their former glory.

And it’s hard to imagine Ferrari will settle for anything less than a triumphant return to their winning days based on the deal that has been handed to him.

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Bringing a driver of Hamilton’s caliber, now aged 39, to Ferrari was always going to come with a hefty price tag. So far, that price is reported to be $446 million (£352 million/€412 million), making it one of the most lucrative contracts in F1 history, as revealed by Planet F1. This staggering figure includes multiple elements that emphasize Hamilton’s immense value, both on and off the track.

Hamilton’s new deal with Ferrari is reportedly worth over $100 million (£79 million/€92 million) annually, structured to grow over the contract’s duration. This figure includes his base salary, performance bonuses, image rights, and a significant allocation toward charitable initiatives. 

The deal spans two years initially, with an option for extension, as Motorsport Weekly reported, and places Hamilton as Ferrari’s highest-paid driver in history, showing just how much confidence it is placing in his ability to deliver results but to also improve the overall performance of the team as a unit.

Hamilton’s base salary for 2025 is $87 million (£69 million/€80 million), as Planet F1 reports, with the remainder of his pay packet, reportedly $20 million (£16 million/€18.5 million), being contributed to his charity Mission 44.

Mission 44, which Hamilton founded in 2021, focuses on creating equitable opportunities for young people, particularly from underrepresented backgrounds. Its work includes funding education programs, supporting STEM (science, technology, engineering, and mathematics) initiatives, and breaking systemic barriers for emerging talent.

Hamilton has consistently leveraged his position in the sport to promote these causes. The arrival of Hamilton seems to have sparked a noticeable shift in the philanthropic efforts at Ferrari.

Another key example of this is the joint investment fund. Ferrari’s parent company, Exor, will establish a joint investment fund valued at over $272 million (£215 million/€251 million), with Lewis Hamilton serving as an ambassador. This fund is said to be used for further charitable efforts that Hamilton will be involved in alongside the Italian racing giant, as Planet F1 reported.

Hamilton’s agreement is also structured as an "upward" contract, meaning his base salary increases over the duration of the agreement, as Sporting News reported. It is currently unknown, however, just how much the contract will increase each year and how much will be going to Mission 44 after 2025.

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That’s not to say there won’t be further business opportunities linked to the deal either, with Planet F1 reporting in November 2024 that Hamilton’s non-alcoholic tequila company Almave was in line to sponsor Ferrari for his upcoming season, bringing in invaluable exposure for the brand.

While the financial terms underscore Ferrari’s confidence, the partnership is not without risks. Ferrari has faced operational and strategic challenges in recent years, and integrating a strong personality like Hamilton into the team’s culture could present hurdles.

However, both parties have a shared motivation: to challenge Red Bull’s dominance and write a new chapter in Ferrari’s storied history.

Hamilton’s switch from Mercedes – where he achieved six of his seven titles – is also a gamble. Earlier this year Hamilton describe leaving Mercedes as "one of the hardest decisions I have ever had to make," the Formula 1 website reported. 

Leaving a team he helped build into a powerhouse is a bold move, but it demonstrates his hunger for fresh challenges and his unwavering belief in Ferrari’s potential.

This historic contract is more than just numbers; it’s a declaration of intent. Hamilton’s arrival signals that Ferrari is ready to compete at the very top once again, combining his experience with their iconic brand. Only time will tell if this partnership can deliver the championships that both parties seem to be looking for. 

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