Strategically Calculated Move: Unveiling the Forethought behind Mercedes’ inclusion of an Exit Clause in Hamilton’s F1 Contract

Strategically Calculated Move: Unveiling the Forethought behind Mercedes’ inclusion of an Exit Clause in Hamilton’s F1 Contract

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Mercedes knew risks of leaving exit clause in Hamilton F1 contract

As Mercedes comes to terms with Hamilton’s decision to join Ferrari from 2025, it is aware that their two-year contract had flexibility to be terminated early if performance was not as expected. This allowed Mercedes the freedom to pursue another driver if desired, but also meant they risked losing Hamilton. Hamilton recently signed with Ferrari and informed team boss Toto Wolff this week that he would be using the exit clause in his current contract. Wolff acknowledged that Mercedes knew the door was open for Hamilton to leave, but they were not interested in committing to him any longer. The change of circumstances prompted Hamilton’s departure, as he was seeking a new challenge and a different environment. The opportunity to sign a long-term contract with Ferrari was a factor that convinced him to make the move. While these rumors have been circulating for a while, the timing of Hamilton’s decision caught Wolff by surprise.

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