Ferrari and Charles Leclerc have sent shockwaves across the Formula 1 world after announcing a monster contract extension on Wednesday.
The Monagesque driver’s big news comes on the eve of the sport’s most iconic race weekend at the Monaco Grand Prix, beginning on Friday night.
The team has not confirmed the details of Leclerc’s contract extension other than to release a statement saying the 28-year-old has signed a multi-year extension.
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Details about the contract have dropped throughout Thursday morning with estimates Leclerc has received a massive pay upgrade as part of a contract that ties him to Ferrari through to the end of the 2030 season.
There is speculation the contract could extend beyond that year.
The most staggering speculation to emerge on Thursday was a suggestion Leclerc’s new deal comes with an upgraded salary of around $80 million (50 million euros).
With Lewis Hamilton making the bombshell move from Mercedes to Ferrari before the 2025 season, it was reported the 41-year-old’s contract runs through to the end of 2027.
According to reports, Hamilton’s salary is around $98 million (60 million euros).
This would make the 2027 Ferrari line up the most expensive in the history of the sport, according to racingnews365.com.
It is the first time a combined driver pairing will be paid more than 100 million euros.
It was estimated Leclerc’s previous deal was worth around 34 million euros.
To put the numbers into perspective, Aussie Oscar Piastri has a base salary of $15 million.
That number was inflated dramatically as a result of performance bonuses tied to the driver’s championship and the team’s constructors championship triumph.
According to the SMH, Piastri received a payday of $41 million at the end of the 2025 season, making him the fourth highest paid driver behind teammate Lando Norris, Hamilton and Max Verstappen.
The shockwaves of Leclerc’s new deal will stretch across the grid.
It takes Leclerc off the board while Red Bull reportedly attempt to put together a Plan B, should Verstappen make good on his sensational threats to quit the sport.
Piastri has previously been linked with a shock move to Red Bull, however, McLaren team principal Andrea Stella said last month it was just a “silly season” rumour.
If Piastri and Leclerc are both locked down to their current teams, Carlos Sainz appears to be the most logical option left for Red Bull to turn to in the emergency scenario of Verstappen walking away, f1oversteer.com reported.
It was reported recently Sainz’s manager has been in contact with Red Bull.
Speculation across the grid suggests Sainz could be available at the end of the 2026 season, given he is out of contract with Williams.
Meanwhile, Leclerc will begin the first practice session on the Monaco street track knowing his future is clear.
The racer has been with Ferrari since 2019, winning eight Grand Prix — his last victory was in 2024 — with his highest finish in the world championship being runner-up to Max Verstappen in 2022.
“Scuderia Ferrari HP announces the renewal of its agreement with Charles Leclerc, who will continue to wear the team’s colours for the coming seasons of the Formula 1 World Championship,” read a Ferrari statement on their website.
Leclerc, who sits in third position in this year’s title race, just three points ahead of teammate Lewis Hamilton, said that he was ecstatic to continue his dream drive with Ferrari.
“It’s the team I’ve loved and dreamt of being part of since I was a child, and after all these years it has become a second family,” he said.
“Together we’ve shared incredible moments and some tougher ones, but I believe in this team more than ever, and I’m deeply grateful that we will keep pushing side by side toward our shared goal of bringing the World Championship back to Maranello.
“Being a Ferrari driver is a dream, but it’s also a responsibility I never take for granted.”
He is the team’s second-most capped Formula 1 driver and also ranks second for pole positions, behind only Michael Schumacher.