Formula 1: Charles Leclerc's New Contract With Ferrari

Charles Leclerc - F1 Grand Prix of Hungary - Final Practice

(Photo : Dan Mullan/Getty Images) BUDAPEST, HUNGARY - Charles Leclerc of Monaco driving the (16) Ferrari SF-23 prepares to drive in the garage prior to final practice ahead of the F1 Grand Prix of Hungary at Hungaroring on July 22, 2023 in Budapest, Hungary.

Scuderia Ferrari driver Charles Leclerc recently reached a multi-year extension to continue racing for the Prancing Horse team.

The announcement was made at the end of last month, on Thursday, January 25. However, the team did not disclose additional details, such as the length and value of the deal.

Leclerc's previous contract was set to conclude at the end of the 2024 Formula 1 season, earning him $19 million in 2023. This figure included a $14 million base salary and $5 million in bonuses, making him the fifth-highest paid driver on the grid, according to Forbes.

Details of Charles Leclerc's new Ferrari contract

A few days following the initial announcement, details about Charles Leclerc's contract extension with Scuderia Ferrari started to surface through the Italian publication Corriere della Sera.

Leclerc's new contract with Ferrari is reportedly set to last until the conclusion of the 2028 Formula 1 season.

This commitment ensures that the Monégasque will have the opportunity to spend at least five more seasons behind the wheel of the iconic car adorned in the team's distinctive red livery, provided all goes well in terms of performance for both the vehicle and driver.

By the conclusion of the new agreement, Leclerc would have raced for Ferrari for a total of 10 seasons, starting in 2019.

Charles Leclerc's new Ferrari contract value

As part of the new agreement, Leclerc's annual earnings are said to see an increase, reaching $30 million per season.

While it remains unclear if his earnings for 2024 will also receive a boost, the reported span of the new deal, covering the years from 2025 up to 2028, suggests that Leclerc is projected to earn $120 million in base salary, excluding incentives from the pact.

Additionally, the 26-year-old driver has the potential to increase his income through performance bonuses, with the opportunity to earn up to an additional $5 million for accomplishments such as race victories and championships.

He could be the third-best-paid driver on the grid with that amount, trailing only reigning world champion Max Verstappen of Red Bull Racing, as well as his future Ferrari teammate and current Mercedes driver Lewis Hamilton.

Charles Leclerc's new Ferrari contract clause

Leclerc's contract includes a crucial break clause that becomes effective each year after the 2026 season, aligning with a major overhaul in Formula 1 regulations.

This clause grants Leclerc the option to potentially part ways with Ferrari if the team does not provide a competitive car capable of contending for the championship.

This provision introduces an element of flexibility, enabling Leclerc to reassess his position based on the team's competitiveness in the aftermath of significant regulatory changes in Formula 1 during that year.