ringo wrote: ↑
Thu Jan 21, 2021 1:23 pm
Fulcrum wrote: ↑
Thu Jan 21, 2021 10:38 am
ringo wrote: ↑
Thu Jan 21, 2021 4:51 am
The thing is with Mercedes is they have to give Hamilton more money than he was getting in the previous contract.
Good performance must be rewarded. F1 is a business and it makes no sense that he wins a champion and breaks records and gets less money. If he even gets 1 million more and some other perks the team is obligated to give an increase. That's how capitalism works. His value has increased because of his success and hardwork. Him taking less is irrational.
I only hope he isnt asking for ridiculous things.
Hamilton may very well have justified an increase in pay, unfortunately the circumstances have not been static. The pandemic has had a real effect on company bottom lines, Mercedes included.
If Hamilton gets $50M(+), he will be earning as much as half the workforce of the Mercedes F1 team combined, at a time when Daimler has already indicated it will cut 10,000 to 20,000 employees worldwide over the next couple of years.
There is an argument to be made that Hamilton is a more visible representation of the Mercedes brand, but I highly doubt he has greater influence on the global functioning of Daimler, certainly not as large as is implied by the discrepancy in pay between Hamilton and the Daimler CEO. Daimler executives have also taken a 20% paycut during the pandemic.
The optics of giving Hamilton a pay increase, while the overall business health has plummeted and people are being retrenched, do not work in Hamilton's favour. It's just bad timing.
As was mentioned in another post, things are amicable until they become acrimonious. If either Mercedes or Hamilton begin to draw lines in the sand, the goodwill between both parties will vaporize.
Hamilton accepting less would actually be pragmatic in the long run, especially if he wants to maintain a working business relationship with Mercedes beyond his racing career.
They're all in this business to make money. Hamilton is not a CEO so he doesnt need a pay cut. Those ceos may have reduced salary but they have some stake in the company and i beleive mercedes was one of the few car makers that did well in 2020 or didnt do bad at all. They're all going home with more cash.
If hamilton takes less money now it sets a precedent for him. Success = less money.
In athletics if you break a record the Altheltics body is obligated to pay you your million dollars or whatever the prize is.
Anyhow we must separate the car industry from Formula1 team. The team came 1rst and won prize money.. Hamilton broke records and got knighted. People in the UK watched F1 because of Hamilton, hate him or love him. He is value added for mercedes sales in the uk and around the world.
I don't think he should backdown from his monetary demands. Maybe on some of the sillier stuff.
Also folks... what Merc doesnt want.. is Hamilton taking those 7wdc to another team and getting the 8 in ferrari or redbull..Remember that is also to be considered. He may as well go to Aston Martin, or the other 2 and become 8xwdc and merc are stuck with some hopefules but no great drivers.
They may even get desperate and pluck Alonso. lol
Mercedes shipped 7-8% fewer cars last year and will be downsizing their global workforce. Those are the facts.
Hamilton has very little scope to walk at this point. There are no seats available for 2021, certainly none of the caliber he would require to be truly competitive. Doing so would all but ensure he never wins another WDC.
Further, consider how the relationship between Michael Schumacher and Ferrari changed once he decided to drive for Mercedes. If Hamilton wanted to build a relationship with Mercedes 'the business' outside of F1, the quickest way to kill that ambition would be to leave for a competitor, especially after such a long and successful association.
Daimler have more bargaining chips, considering all factors at play. That said, I expect both parties to compromise.
- Odds on, he will be driving for Mercedes.
- Outside chance, but not unlikely, he won't be on the grid this year.
- Longshot, driving for another team.
- Moonshot, driving in IndyCar.