We are all aware of how the Daniel Ricciardo-McLaren-Oscar Piastri saga played out. Ricciardo got the boot from his team, but that came at a $21 million price for the Woking outfit, or so we thought. According to RacingNews365, there were a few variables concerning Riccardo’s compensation. After factoring in all the variables, the compensation is different from what was originally reported.

First, let’s talk about the variables. We are aware that McLaren chose to terminate Ricciardo’s contract 12 months early. Ricciardo began his search for a full-time seat. Had Ricciardo secured a seat for 2023, McLaren was going to use that in negotiations. However, Ricciardo did not jump at the first opportunity, much to Haas’s disappointment, and chose to not race in 2023.

Ricciardo made the decision to not race to protect his mental peace and get back on top of his game. This is exactly why Ricciardo opted for selective participation. Ricciardo joined his old team Red Bull in a third-driver capacity. According to RacingNews365, this decision played a part in McLaren’s compensation to Ricciardo.

Because of the Red Bull move, Ricciardo will get $18 million from McLaren instead of the $21 originally reported. The $3 million difference is because of his involvement with Red Bull, but Ricciardo will not mind the opportunity cost.

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The severance package coupled with his fees as the Red Bull ambassador, Ricciardo’s 2023, will be a very financially strong year. In fact, Australian will earn more than most drivers on the grid.

Daniel Ricciardo is on par with most F1 drivers despite taking a back seat in 2023

Ricciardo is doing better and on financial parity with top earners on the grid despite the third driver role. How? That’s mainly thanks to the severance package.

According to Business Book GP and as reported by Sportune, Ricciardo will earn his severance and $2 million for his role at Red Bull. This adds up to $20 million a year. With $20 million a year, Ricciardo will be the fourth-highest-earning driver on the grid, without being on the grid.

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We all know Ricciardo has business acumen with his brand and various affiliations as proof. However, the Australian has played a master stroke with his dealings for 2023.