Edward Gorman, Motor Racing Correspondent
Win a trip to the Ice Hotel in Lapland

Lewis Hamilton is on course to become one of the world’s richest sportsmen after signing a new five-year contract with McLaren Mercedes yesterday thought to be worth at least £70 million. The deal, which could be considerably more in value when bonuses and other endorsements are added, ties Hamilton to McLaren until the end of the 2012 season but he may stay even longer should he fulfil his early promise.
Hamilton was grinning from ear to ear as he posed for an official photograph to mark the deal with Ron Dennis, the McLaren team principal, and Martin Whitmarsh, the chief executive, at the company headquarters outside Woking in Surrey.
Describing his contract extension as “fantastic”, the 23-year-old from Stevenage in Hertfordshire said: “I am with the right team to compete for race wins and the drivers’ and constructors’ world championships. We will have a lot of challenges ahead, but I am 100 per cent positive I am with the people to take them on.”
Dennis said that, after the initial Formula One contract for last season - under which Hamilton is thought to have earned a total of about £1 million - the driver had exceeded all expectations during a rookie season in which he finished as runner-up in the world championship. “Lewis is an exceptional human being on both a personal and professional level and will continue to be a credit to this team,” Dennis said.
Although Hamilton’s remuneration may seem excessive, it will not make him the best-paid driver in Formula One. That category remains occupied by Kimi Raikkonen, Finland’s reigning world champion, who is estimated to be earning around £25 million a year over three seasons at Ferrari.
The new deal for Hamilton was negotiated by his father, Anthony, the best evidence yet of Hamilton Sr’s determination to retain control of his son’s affairs as manager and not bring in outside consultants, as some have advised him to do.
Like Dennis, Hamilton Sr was delighted with the continuing relationship with McLaren, which goes back to when his son was only 13 and racing in karts. “It is an amazing thing to have been signed by McLaren and Mercedes-Benz back in 1998 and to be given the opportunity to achieve a better life than one would ever have dreamt could happen,” he said.
It is thought that his son will earn a baseline figure of about £10 million a year, which will increase with each successive season. On top of that, he will earn bonuses, possibly for each race win but certainly in the event that he wins a drivers’ championship or the team win a constructors’ title.
There was some debate among independent experts about how much the bonuses could be worth, with some suggesting that Hamilton could net as much as £10 million extra for a championship. However, one well-placed observer reckoned that was unlikely. “It would not be that big because when you start getting into the £12-14-16 million-a-year category, they [McLaren] are expecting you to be there or thereabouts anyway, so a bonus for a title could be £2 million.”
Another element in Hamilton’s total earnings is the degree to which McLaren are allowing him to sign private sponsorship deals or product endorsements. Normally the team do not allow this, but it is thought that Hamilton has been permitted.
Apart from the announcement itself, a significant element yesterday was Dennis’s prominent presence. This might seem perfectly normal for a team principal, but it came amid increasing speculation that Dennis’s 28-year tenure at the head of McLaren is drawing to a close after a traumatic season last year.
The Formula One rumour mill suggests that pressure from Mercedes has already resulted in a decision to ease Dennis out and that only the presenta-tional aspects of how this should be handled remain to be finalised. However, the word at McLaren is that nothing has been decided, that Dennis is still mulling things over and that discussions about possible equity shifts in the company (potentially in favour of Mercedes) are entirely normal at this time of year.
British wealth:
- David Beckham’s deal with Los Angeles Galaxy could net him £128 million over
five years
- Dario Franchitti, the Nascar driver, earns £15 million a year
- Jensen Button’s contract with the Honda Formula One team is estimated at £12
million a year
- Wayne Rooney earned £9 million last year, including sponsors’ deals
- Just behind were John Terry and Steven Gerrard, with salary and deals worth
an estimated £8 million a year each
Source: Times Archive
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it's a shame Brits are so partisan. i for one don't like Lewis' style at all - i'm really not a fan. he comes across as arrogant and as a bad sportsman who is all mouth. having turned down Button's challenge, why hasn't he offered 10K to a charity of Button's choosing? is he greedy and selfish too?
jack, leeds, uk
Hmm Dario Franchitti, winner of the Indycar championship as well as the Indy 500. A series not only competitive (until the final four races there were 6 drivers in with a chance) but challenging as it consists of ovals and road courses. The Scot is an ideal driver, able to consistently bring the car home and give the team good feedback to improve the car or strategy.
He, along with Dan Wheldon (winner of the '05 championship and Indy 500) and Alex Lloyd (winner of the Indy Pro title, winning over half of the races, now to do a mixed Indycar and Grand-Am schedule), are highly underrated British drivers simply because they're not in F1 or GP2.
These guys should be given just as much (maybe even more) credit than Lewis for not giving up when they were ignored by European teams because they didn't have the wealthy background or backing of a big team.
Zoe, Glasgow,
Good luck to him-it's not what you deserve, it's what someone's prepared to pay-if someone is willing to give him x amount why shouldn't he take it?-Everyone on this forum would do the same-and I doubt if someone dropped 70 million squid in Helen from Norwich's lap she would spend it on the environment!
Tyrone, Chicago, USA
It's funny no briton complaining about the money this guy is stealing from you. All the money you spent in taxes to give all the chances to this kid, now he is paying his taxes in a foreing country to avoid giving back part of what he has received.
How much of that money belongs to UK and are getting nothing? 35M? In spain he should be paying 40m after having enjoyed social security, education, protection etc. when he had nothing.
And he'll still become best british sportman next year.
P.S. Same applies to Alonso and the others, who should be prosecuted for traison, tax evasion or at least expelled from the country. They are rejecting the citizenships that made them rich.
Miguel Galarraga, Madrid, Spain
Hamilton has been paid by his results from last year. If he
had flopped at Mclaren, he would obviously not be getting
this new deal, and Alonso would probably had stayed
with the team. You are paid by what you achieve, and given
that he was such a 'novice', as some have alleged, he
didn't do too bad did he?
Raikkonen gets such a big paycheck because Ferrari know
they have the next best thing to Michael Schumacher
driving their car, and thus the best chance of becoming
champions. He doesn't moan, winge, or tear down
motorhome doors when things don't go his way, he
just drives the car as quickly as he can.
Who needs a driver who ends up third in a championship and
costs you $100 million in the process? I DON'T THINK SO!
james hunt, lady lake, usa / florida
+1 Overrated
Rexor, Alicante, Spain
But Helen from Norwich without the F1 there would'nt be the Money to Invest...Doh
Will, hannover, Germany
I've read a few of the above comments questioning the rationale behind Lewis Hamilton earning so much and I count such remarks as ludicrous. Before spectators of the sport make value judgements on his income they need to appreciate what a British talent he is whose historical relationship with maclaren goes back almost a decade. Though still very young, Lewis Hamilton's pedigree in the sport is right up there with the likes of Tiger Woods and Federer in their respective fields and rather than question his earnings or remunerations i feel the British public should embrace and celebrate such a huge talent. He has indeed brought formula 1 to a mainstream audience like Tiger made golf sexy again. So rather than hate we should appreciate hardwork, dedication and excellence because this young man's rising career encapsulates all.
JL SHASH, Hertfordshire,
Form an orderly queue ladies. Not only is he gorgeous, charming and talented, but extremely rich!
Betty Cave, London,
I actually think this is a rubbish deal for hamilton. Considering what Michael Schumacher and Ayrton Senna were getting paid, McLaren should pat themselves on the back - this is a potential multiple world champion. It's possible that in 3 years time, he will be the best driver on the circuit and McLaren would only be paying him 10-15 million a year (less than what Ralf Schumacher got paid by Toyota and Jacques Villeneuve by BAR) - Anthony Hamilton should have secured a short 2 year contract for 15-20 million with big win bonuses, and renegotiated a huge contract from McLaren, Toyota, Honda, BMW, Renault or Ferrari - rich teams desperate to win.
Nik, Edinburgh,
what elias said! Bunch of misery guts, he's revitalised the sport, seems like a sportsman and is a great British ambassador. As if he's going to turn it down, if that's what's on the table who is he to refuse it!
Gavin Sullivan, Cardiff, UK
Hamilton should say thank you very much Fernando Alonso instead of bashing him. How well performed the McLaren cars before the arrival of Alonso ?
Janet Welch, Amsterdam,
What is this? The prize for having miserably lost last year's championship? Definitely overrated! My policy: show me a world championship first, then I will consider to give you such a contract.
Dr O, Miami,
Not all the rest of the world is happy with HAM way TO succeed.
Specially if we see hungary, when HAM not accepted the team agrements to a get real pilot equal treatment, or most of the time being favoured by Ron, who not considered the real contributions of each pilot as a whole to the team succes and he just saw what he wanted to see, that both pilots seem able to be equal in track.
That could be true if you don't know that Alonso had to get used to the tyres and to the car during the first part of the season, whyle HAM had been from years getting used to the car and yes the circuits too, using Mac's simulator.
HAM was the best prepared guy to reach the F1, nobody even Ayrton had that huge chance and he spolied at the end, in the most important moment when he just needed two points in two races.
A lot of people and not just Spaniards prefers Alonso's succes rather than other pilots and more over HAM. Yes because due to the unfair treatament to Alonso from MC and yes from HAM too.
Jose, Oviedo,
It's amazing - going by some of the comments here - just how sad and envious many Brits are! The rest of the world is happy for Lewis (like I definitely am) but some Brits just can't ever be! It's no wonder Lewis now resides in a different country!
Best of luck on the circuit this year mate! :) Shown them who's the real deal Lewis!
Elias, Stevenage, UK
Overrated
Giuseppe Moschella, London,
too much, too much.
Next season we´ll see he can´t win at all. then...
jms, madrid, Spain
What a joke! How many titles has this brat won?
We'll see what he does this year without the traction.
Albert, London, UK
How polluting is this 'sport' not just the actual racing, but the preparation, the building of circuits, the emulation by others? The money would be better spent doing something helpful for the enviornment and the people around the tracks.
helen, Norwich,
Lewis Deserves it. Amazing performance.
Chris, Chennai, INDIA
To be honest, recent F1 seasons have been a little dull. Last years Championship brought a lot of old fans back to the screens. Hamilton is great for the sport and his package is only a fraction of what companies earn on the back of him. Good luck to him!
Simon Phillips, Riyadh, Saudi Arabia
He is paid what he's paid because McLaren and their sponsors think he's worth it. He will enhance their brands and they think they will sell more product by backing him than through conventional TV advertising.
In spite of Max Mosley, F1, properly used, is a highly successful medium for promoting brands. How many people outside the UK and Netherlands had heard of ING before they sponsored Renault?
Conventional advertising is still hugely expensive. Extraordinary as it may seem, £70m is not a very big budget to promote a worldwide brand.
As for not winning anything Piero, I thought he won four races last year!
Richard Williams, London, UK
Ridiculous sums of money. The sport is out of control.
Tony Harrison, Wokingham, UK/Berks
It's a pity, all this amount of money for someone who didn't win anything. Well, in fact he loss a championship. In my job is the opposite: if you don't do a good job, they don't pay you. What an amazing world! Unbelievable
Piero Chow, TAipa, Macao China
Well deserved I say. Let's hope he brings home the title this year. What an inspiration!
A Parker, London,