Lewis Hamilton has rubbished a media report alleging that Mercedes has rejected the Briton's £40m contract demands for 2021, with the German allegedly topping its offer at £20m.
According to a report from the Daily Mail's Jonathan McEvoy, Hamilton, whose current contract with Mercedes expires at the end of this season, is demanding from 2021 a multi-year deal and a £40m annual retainer from his employer.
But a global economic downturn sparked by the coronavirus pandemic and the challenging struggles of the automotive industry are inciting Mercedes to rein in its spending.
According to the Daily Mail, Mercedes team boss Toto Wolff has therefore apparently capped his offer for Hamilton's services from next year at £20m.
Mercedes could argue that next year's $145m budget cap - from which driver salaries are currently excluded - will lead to many redundancies as F1's big teams trim staff to comply with the cost cutting measures, and that big buck driver salaries are therefore no longer affordable or equitable.
An inflexible stance by Mercedes on Hamilton's demands would likely leave the six-time world champion with limited bargaining power and a straightforward choice: except a pay cut or retire from the sport.
©Mercedes
On Friday in Austria, Wolff was queried on his contract negotiations with Hamilton, but admitted that there was "no urgency" in the two parties reaching a resolution.
However, Hamilton rubbished the story on Saturday morning, insisting he had yet to even engage in talks with his employer.
"So the media keep writing about contract and me making demands but I haven't even spoken with Toto about it yet," he posted on Instagram.
"No demands, the conversation hasn't even begun. So please stop making shit up."
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