Upon winning a bid, you choose to keep a driver for 1, 2, 3 or 4 seasons. The longer a contract the more money up-front a team will have to pay out. The discount rate applied for retaining a driver also differs depening on the contract length, as does the 'Base Value' of the contract. The 'Base Value' is simply the minimum value of the contract. This is related to the winning bid and is calculated before any discounts are applied. The variations for each length of contract are detailed in the table below.
Length |
Winning Bid |
Length Fee |
Discount |
Base Contract |
1 Year |
£ X,XXX,XXX |
£0 |
0%/25% |
100% |
2 Years |
£ X,XXX,XXX |
£1,000,000 |
25% |
80% |
3 Years |
£ X,XXX,XXX |
£2,000,000 |
20% |
60% |
4 Years |
£ X,XXX,XXX |
£3,000,000 |
15% |
40% |
For a 1-year deal, there is no additional length fee. The discount is either 0% if the driver is new to the team, or 25% if the driver is already contracted with that team. This remains the case for the first year of every length of contract. The amount paid will be the amount bid (minus discount if applicable).
For a 2-year deal, the team must pay £1,000,000 extra at the start of the contract. The second year of this contract will be subject to a 25% discount. The 'Base Value' of the contract would be 80% of the total of the winning bid (before discounts are applied) - e.g. if the winning bid was £10,000,000 then the 'Base Value' of the contract would be £8,000,000. The amount paid for the first year of the contract will be the amount bid (minus discount if applicable). The amount paid for the second year of the contract will be equal to wherever the driver finishes in the Championship or the 'Base Value' of the contract, whichever is higher (minus 25% discount).
For 3-year and 4-year deals, the premise is the same except the values change as per the table above.
Note that there are now two ways a contract can be broken.
The team can break the contract themselves by paying - upfront - half of the remaining value of the contract. This will be determined by the 'Base Value', with any discounts not applicable.
Alternatively, the contract can be broken by what is known as a "Performance Clause". If the driver finishes lower in the Championship than the equivalent 'Base Value' of their contract, then the contract will be voided (e.g. Winning bid of £10,000,000 on a 3-year deal sees a 'Base Value' of £6,000,000. This is equal to 9th position, so if the driver ends the season 10th or lower, the contract will be voided). When a contract is voided, all future years of the contract (with the exception of the immediate upcoming season) are removed and the driver goes back onto the driver market (e.g. in 2022 Driver X for Team Y finishes lower in the Championship than the 'Base Value' of their 4-year contract. Driver X will continue to race for Team Y in 2023, however will be eligible to be bid on by other teams for 2024).
For a 2-year deal, the team must pay £1,000,000 extra at the start of the contract. The second year of this contract will be subject to a 25% discount. The 'Base Value' of the contract would be 80% of the total of the winning bid (before discounts are applied) - e.g. if the winning bid was £10,000,000 then the 'Base Value' of the contract would be £8,000,000. The amount paid for the first year of the contract will be the amount bid (minus discount if applicable). The amount paid for the second year of the contract will be equal to wherever the driver finishes in the Championship or the 'Base Value' of the contract, whichever is higher (minus 25% discount).
For 3-year and 4-year deals, the premise is the same except the values change as per the table above.
Note that there are now two ways a contract can be broken.
The team can break the contract themselves by paying - upfront - half of the remaining value of the contract. This will be determined by the 'Base Value', with any discounts not applicable.
Alternatively, the contract can be broken by what is known as a "Performance Clause". If the driver finishes lower in the Championship than the equivalent 'Base Value' of their contract, then the contract will be voided (e.g. Winning bid of £10,000,000 on a 3-year deal sees a 'Base Value' of £6,000,000. This is equal to 9th position, so if the driver ends the season 10th or lower, the contract will be voided). When a contract is voided, all future years of the contract (with the exception of the immediate upcoming season) are removed and the driver goes back onto the driver market (e.g. in 2022 Driver X for Team Y finishes lower in the Championship than the 'Base Value' of their 4-year contract. Driver X will continue to race for Team Y in 2023, however will be eligible to be bid on by other teams for 2024).