George Russell New Mercedes Deal Make Him Third Highest Paid F1 Driver

George Russell has officially signed contract extension at Mercedes for 2026 Formula 1 season. The new contract was announced on 15th October 2025 which comes with 2026 season contract plus Mercedes holding the option to extend until 2027. His base salary was increased to massive £30 million million per year making third highest paid driver in Formula 1.

Numbers behind the Deal:

George Russel will earn guaranteed $40 million (£30m) per-year salary plus performance and team success bonuses upto $8 million a-year. Initial contract is for 2026 F1 season but Mercedes hold the option to extend until 2027.

Russel will become third highest paid F1 driver on the grid starting from 2026 season. Only Max Verstappen's and Lewis Hamilton will be earning more then him with their respective deals at Red Bull and Ferrari.

What This Means for the F1 driver salary negotiations & expectations?

Mercedes has made the statement that the team believes, with George Russell behind the wheel, they can challenge for the 2026 F1 Championship.

However this deal also put cold water on Max Verstappen rumours joining Mercedes anytime before 2028, meaning Russell now carries the full weight of Mercedes’ championship hopes. His new contract, worth $40 million per year, sets a new benchmark for future F1 driver negotiations considering he negotiated massive base salary without winning F1 title 

With this kind of base salary, Russle will have to be competitive at the very top and will be judged if he is not in title contention come end of the season. Max Verstappen's $75 million contract put him at the very top of Formula 1 highest earners followed by Lewis Hamilton's $60 million package.