After Ferrari acquired its $10 billion man, Italian team issue succinct statement

The timing was exquisite. As Ferrari’s board showcased their exceptional 2023 earnings, boasting profits of $1.3 billion for the year and an even brighter outlook for 2024, rumors of Lewis Hamilton signing with the Scuderia had been circulating vigorously across Europe since morning.

Although it took until early evening for both AMG-Mercedes and Ferrari to officially confirm the news — with the Italian team issuing a succinct statement — the delay didn’t diminish the significance. Ferrari Chairman John Elkann had secured his desired candidate; Ferrari had enlisted a global superstar. This, coupled with their continued success in generating substantial revenue from their road cars’ customers, led to a nearly $10 billion increase in their market valuation. Hamilton’s rumored annual deal of $75-100 million appeared to be a steal.

Just a day earlier, Formula 1 was facing a crisis after rejecting Andretti and Cadillac’s bid to join the grid as the 11th team. The explanations given were met with ridicule, causing a seismic backlash from fans and stakeholders. However, by the next morning, the Andretti saga had been overshadowed. F1 had been handed a lifeline, delivering a blow to Toto Wolff akin to the one Andretti experienced the day prior.

There had been murmurs, albeit not fervent, about Hamilton’s desire to drive for Ferrari at some point. Ferrari, in turn, had long admired the seven-time world champion, not only for his racing prowess but also for his potential contributions beyond the racetrack. With Hamilton on board, any apprehensions from Ferrari’s sales and marketing team regarding the launch of their first fully electric car by the end of 2025 could be dispelled. Hamilton brings with him a diverse audience beyond the automotive realm, one less concerned with technical specifics and more focused on brand allure. As a result, Ferrari’s waiting lists are expected to grow even longer.

Chairman John Elkann had disclosed to Italian media in 2019 that he had engaged in discussions with Lewis Hamilton twice that year regarding a potential deal for the then-five-time, soon-to-be-six-time world champion to replace Sebastian Vettel at Maranello. However, nothing materialized, and Hamilton remained with Mercedes, securing two more titles. The rumors gained traction in 2023 as negotiations between Mercedes and Hamilton dragged on, culminating in a two-year contract extension, tying Hamilton to the Brackley-based team until the end of the 2025 season.

The prolonged contract talks were reportedly due to Hamilton and his team insisting on an exit clause, allowing him to depart after one year. Mercedes acquiesced, and he activated it before even hitting the track in the W15.

So, why leave a team that delivered six world drivers’ titles? Clearly, the past two years had fallen short of Hamilton’s lofty standards, a sentiment even echoed by those at Brackley. However, with changes on the horizon for the 2024 car, the days of languishing in the midfield might soon be over.

Yet, Hamilton’s decision isn’t solely about 2024 or ’25. The pivotal moment lies in the 2026 season, when new technical regulations will be implemented, leveling the playing field and resetting the parameters. Hamilton will be integral to Ferrari’s preparations, arriving before the birth of their new car rather than joining afterward.

While the prospect sounds promising, Ferrari’s recent track record has been less than stellar, marked by botched pit stops, questionable strategy calls, and organizational disarray. Team principal Fred Vasseur has been tasked with bringing order to the chaos, with significant changes planned for the 2024 car and personnel acquisitions from Red Bull and Hamilton’s current team. Vasseur’s prior relationship with Hamilton adds another layer of significance, with their close bond potentially influencing Hamilton’s decision.

Hamilton’s departure from Mercedes, a team he’s been with since 2013, will undoubtedly leave a lasting impact. The farewell will be prolonged, perhaps even warranting a dedicated series on Netflix. But all good things must come to an end eventually. The reasons behind Hamilton’s move could vary, from a desire for change to potential shifts within Mercedes and the allure of ending his career with Ferrari.

Before donning the red of Ferrari, Hamilton will have one final stint with Mercedes as they aim to reclaim their former dominance. Additionally, questions linger regarding Carlos Sainz’s future and who will fill Hamilton’s seat in 2025. The speculation extends to Mercedes’ longevity as a team beyond 2026, with potential involvement from Ineos.

As Hamilton embarks on this new chapter, the question arises: will he secure his eighth world title and surpass Michael Schumacher’s achievements? Only time will tell, but one should never underestimate Lewis Hamilton’s prowess on the track.