- Lewis Hamilton is reportedly weighing an offer from Mercedes that would pay him $77 million (£62 million) per year.
- It is said to include a 10-year, $270 million (£220 million) role as a Mercedes ambassador after he retires.
Lewis Hamilton and Mercedes are working on a new contract, and the latest reports suggest it will be a doozy.
Hamilton, 38, has one year left on his current contract with Mercedes, and he recently said he would like to race in Formula One for at least three more years. That would mean Hamilton would be racing until at least his age-40 season.
Mercedes boss Toto Wolff recently suggested that the two sides could be close to signing an extension, which wouldn't even kick in until 2024.
"We have a full year to go," Wolff said, according to PlanetF1. "We're so aligned. In the last 10 years, our relationship has grown that it's just a matter of him physically being back in Europe, sticking our heads together, wrestling a bit, and then leaving the room with white smoke after a few hours."
Hamilton would be owed more than $470 million over next 13 years
A report from the French outlet 20 Minutes offers details on the potential size of a new deal, what Hamilton would do after he retires, and who would pay for it all.
According to the report, Hamilton has been offered a contract that would pay him €70 million (US$76 million) per year for the 2024 and 2025 seasons.
That is a 55% raise over his current base salary of €45 million (US$49 million). It is also the same amount he would make — including a bonus — if he were to win the F1 championship under his current contract. In other words, the new deal would essentially pay him as if he won the title each year, even if he doesn't.
On the other side of the negotiating table, 20 Minutes reports that Hamilton is asking for an additional contract to act as a Mercedes ambassador after he retires that would pay him €250 million (US$270 million) over 10 years.
If the two sides agree on these numbers and Hamilton does retire after the 2025 season, he would make more than $470 million over the next 13 years (including the last year on his current contract).
Britain's richest person would pay for most of it
According to the report, Jim Ratcliffe, the founder of Mercedes sponsor Ineos, would finance 90% of the new deal, up from 33% of Hamilton's current contract.
Ratcliffe is also a part-owner of Mercedes F1 and a close friend of Hamilton.
Hamilton and Ratcliffe have also recently been linked as potential future owners of Premier League club Manchester United. Hamilton spoke about a possible partnership.
"Jim's part-boss but partner – I'd say we're more partners because we're in this together, and I hope in future to do something with Jim and build with him," Hamilton told the Manchester Evening News in September. "I don't know where that will be or what that will be, so I can't really say. I haven't had a call from him asking if I want to be involved in [a United bid] just yet. But I do want to get more and more involved in teams because I really do believe in Black ownership, there is a lack of it in sports. And Black equity, again, there is a real lack of that."
Hamilton's foundation is a key factor in the new contract
A big reason Hamilton and Mercedes are both seemingly eager to get an extension done is that both sides are heavily invested in Hamilton's foundation, Mission 44, and their joint charitable foundation, Ignite.
According to 20 Minutes, a large chunk of his next contract would go directly to Mission 44. Of the €70 million (US$76 million) salary, €15 million (US$16 million) would help fund the charity.
Mission 44 was founded by Hamilton to support "the ambitions of underrepresented young people." Ignite works closely with Mission 44 and was founded "to support greater diversity and inclusion in motorsport." The latter was founded after Hamilton opened Wolff's eyes to the lack of diversity in the Mercedes garage.
"Lewis said to me, 'Imagine you are going into the paddock, and you are the only white person, how would you feel about that?'" Wolff told Insider last season.
"Well, that will feel odd. And then he said, 'Have you ever thought about your skin color?' I haven't thought about my skin color. It has never had any relevance for me. So that is something we are in this media spotlight. We are a glamour sport. We need to be responsible in changing that and making it a more diverse environment."