Formula 1: The surprising reason Sergio Perez was not replaced

After starting the 2023 season in very sharp form, Sergio Perez’s decline happened quite quickly. Despite having the fastest car last season and arguably one of the fastest cars this season, his lack of consistency has been costing Red Bull.

The fact that the Mexican driver was handed a new two-year contract extension a few months ago shocked many, as it was improbable given the current circumstances. However, it seems that Perez could still be dropped by the Milton Keynes-based team once the 2024 season ends.

There was strong speculation about the 34-year-old being dropped once the summer break began, especially given how far he has been behind Max Verstappen.

Perez even satisfied a clause in his contract that warranted his dismissal from Red Bull, as he is now more than 100 points and five places behind his teammate in the standings.

All signs pointed to Perez being dropped, until he wasn’t.

After Perez's lackluster performances in Hungary and Belgium, his dismissal seemed inevitable and imminent, as a filming day was scheduled by the team right after the Belgian Grand Prix involving RB driver Daniel Ricciardo and reserve driver Liam Lawson.

When it was confirmed that Red Bull had decided to keep Sergio Perez until at least the end of the 2024 season, it was rather surprising, as their lead in the constructor championship has been falling consistently to McLaren over the eight most recent race weekends going back to mid-May.

However, reports later emerged that Formula 1 owners Liberty Media had some influence on Perez continuing with Red Bull for the remainder of the season. It seems that they urged Christian Horner and Helmut Marko to reconsider their stance on the situation and prolong this decision until after the season concludes with December's Abu Dhabi Grand Prix.

The likely reasoning behind this request from Liberty Media is revenue. From a revenue standpoint, Perez is a massive figure in Mexico, and with the Mexico City Grand Prix scheduled to take place in late October, his dismissal would have resulted in the potential for lots of lost revenue.

This decision indicates that Liberty Media need more time to figure out what other areas in which they need to maximize potential revenue, especially the event that Perez is indeed replaced by Red Bull after the 2025 season.

The whole situation is an unprecedented one, as nobody would have expected Liberty Media to step in and have some influence on a team's driver lineup. If they were able to influence a decision made by the two-time reigning constructor champions and current championship leaders, what else could be manipulated by Formula 1’s owners going forward?