Formula 1, a world of speed, glamour and fierce rivalries, has just been shaken by sensational news: seven-time world champion Lewis Hamilton has signed a billion-dollar contract with Mercedes for the 2026-2030 seasons. The announcement, made on the sidelines of the 2025 Imola Grand Prix, not only stunned the paddock but also shocked Ferrari and its star driver, Charles Leclerc. How did this contract come about and why is it being called a humiliation for the Scuderia? Deciphering a dramatic turnaround that is reshaping the future of F1.

At 40 years old, Lewis Hamilton continues to defy time and expectations. While many thought his move to Ferrari in 2025 would mark the peak of his career, the Briton surprised everyone by announcing his return to Mercedes, the team with which he won six of his seven world titles. The contract, estimated to be worth $1 billion over five years, includes not only an astronomical base salary, but also performance-based bonuses, commercial partnerships and a role as a global brand ambassador after his retirement.

This colossal sum, never before seen in the history of motorsport, reflects Hamilton’s influence beyond the circuit. With his 105 Grand Prix victories and his global aura, he remains a lucrative icon, capable of attracting sponsors and fans. Mercedes boss Toto Wolff did not hide his enthusiasm: “Lewis is more than a driver, he is a living legend. This contract demonstrates our ambition to dominate F1 in the new engine era of 2026.”

For Ferrari, this news is a real slap in the face. Having convinced Hamilton to join Maranello in 2025 on a two-year contract, the Scuderia had hoped to capitalise on his experience to regain the world title, which it had not won since 2008. Charles Leclerc, considered the future of Ferrari, agreed to share the spotlight with Hamilton, despite internal tensions. But Hamilton’s premature departure, after just one season, leaves Ferrari in a difficult position.

According to  Motorsport Italia  , Hamilton was reportedly frustrated with Ferrari’s internal management, including erratic race strategies and a less competitive car than expected against McLaren and Red Bull in 2025. At the Miami Grand Prix, a strategic error cost Hamilton a potential victory, relegating Leclerc to second place. These disagreements are said to have led Hamilton to secretly negotiate with Mercedes as early as spring 2025, a blow to Ferrari principal Fred Vasseur.

Leclerc, meanwhile, finds himself in an uncomfortable situation. Hailed as Ferrari’s natural leader, he has been overshadowed by Hamilton’s arrival, and his failure to establish himself as the number one driver has drawn criticism. On social media, fans have minced no words, accusing Leclerc of lacking charisma compared to the British legend. Hamilton’s signing with Mercedes, along with a record-breaking contract, has only heightened this perception of failure for Ferrari and its Monegasque prodigy.

This move is not just about money, it is also a battle of ego and power. Hamilton, known for his strategic sense, orchestrated his return to Mercedes with surgical precision. By leaving Ferrari after just one season, he sent a clear message: he does not tolerate incompetence and prefers a team that shares his vision. This choice is perceived as an implicit criticism of Ferrari’s management, reinforcing the image of a Scuderia plagued by internal conflicts.

Red Bull and McLaren, the two dominant teams in 2025, are watching the drama unfold with a mixture of amusement and caution. Red Bull boss Christian Horner joked: “A billion for a 40-year-old? Mercedes must really believe in miracles.” McLaren’s Zak Brown preferred to salute Hamilton: “Lewis remains a benchmark. If he thinks he can win with Mercedes, I wish him luck.”

The deal marks the start of a new era for Formula 1, which will see the introduction of new engines in 2026. Mercedes, thanks to major investments in its power unit, appears confident in its ability to compete with Red Bull and McLaren. Hamilton, who will be 41 at the start of the 2026 season, will have to prove that he can still dominate younger drivers such as Lando Norris, Oscar Piastri and George Russell, his future Mercedes teammate.

For Ferrari, the challenge is to recover quickly. Leclerc, under pressure, will have to assume his role as leader and lead the Scuderia back to the top. The appointment of a new technical director, planned for 2026, could also give the Italian team a new lease of life.

By signing this historic contract, Lewis Hamilton is not only securing his financial future: he is reaffirming his status as a key figure in Formula 1. His return to Mercedes, after a tumultuous period at Ferrari, is a bold move that could cement his legend or expose its limitations in the long run. One thing is certain: by humiliating Ferrari and Leclerc, Hamilton has proven that he remains the master of the game, on and off the track. The 2026 season is already shaping up to be explosive.