According to reports published by The Telegraph, Christian Horner could be entitled to a substantial severance package following his dismissal from Red Bull Racing.
In what has quickly become one of the major twists of the Formula 1 summer break, Christian Horner, who led the Red Bull Formula 1 team for two decades, has officially been removed from his operational role. The announcement from the team stated that he had been “relieved of his operational duties,” although he technically remains an employee of the Red Bull organisation.
At present, Christian Horner’s legal representatives are in the process of negotiating the financial details of his severance package. As The Telegraph reports, the British team principal had a contract in place that was set to run for another five and a half years, expiring in the year 2030.
Recent financial statements from Red Bull Technology Ltd indicate that the team’s highest-paid principal—clearly referring to Christian Horner—saw his salary increase from £8.04 million in 2022 to £8.92 million in 2023. This represents a salary increase of approximately 11%, further reinforcing his status as the highest-paid team principal on the Formula 1 grid.
Moreover, this amount is expected to grow further given that the Red Bull Racing team secured the 2024 Formula 1 Drivers’ Championship, a success that likely triggered additional contractual bonuses and performance-related incentives.
Due to the duration of his contract and the increase in earnings, Christian Horner could now be entitled to a severance payout worth more than £50 million. However, according to The Telegraph, that figure could climb to as much as £60 million once all bonuses, incentives, and additional income streams are included in the final calculation.
Christian Horner’s contributions to Red Bull Racing have extended far beyond the traditional responsibilities of a team principal. Over the years, he played a pivotal role in shaping the team’s commercial strategy and securing major sponsorship agreements. Notably, he was instrumental in brokering deals with major brands such as Visa and Cash App—companies that later became key sponsors of Racing Bulls, Red Bull’s sister team in Formula 1.
Severance clause may clash with Formula 1’s financial regulations
There is a potential complication regarding the financial aspect of Christian Horner’s departure. Under the current Formula 1 financial regulations, any severance or compensation package awarded to one of the three highest-paid team personnel must be counted under the cost cap regulations. Horner’s compensation, therefore, is likely to fall outside the scope of current exemptions and may surpass the budget cap restrictions.
At the moment, the financial regulations only exempt severance payouts made during the 2021 and 2022 seasons. As such, there is considerable uncertainty surrounding how Horner’s multimillion-pound severance will be treated under the present rules.
For context, the current budget cap for the 2025 Formula 1 season has been set at $140.4 million, which is roughly equivalent to £104 million. This limit will rise to $215 million—or approximately £159 million—in the 2026 season. Given the size of Horner’s severance, the payout alone could consume a significant portion of the team’s operational budget if it is deemed ineligible for exemption.
Christian Horner’s next move remains uncertain
Looking ahead, there is growing speculation about what the future holds for Christian Horner. While no official announcements have been made, rumors have circulated regarding a potential move to Scuderia Ferrari, where he could hypothetically replace current Team Principal Frédéric Vasseur. However, at this stage, such reports remain unconfirmed and are purely speculative.
After two decades at the helm of Red Bull Racing, Christian Horner leaves behind a legacy of dominance, having overseen multiple Drivers’ and Constructors’ World Championships, helped develop star drivers like Sebastian Vettel and Max Verstappen, and built one of the most successful operations in the modern era of Formula 1.
If confirmed, Horner’s exit would not only mark the end of an era for the Milton Keynes-based outfit but could also have long-lasting financial and structural implications for the team’s future in the sport.
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