Earlier this month we were treated to Formula 1 News of the Century, namely Ferrari signing Lewis Hamilton which rocked not only the sporting world but the Stock Exchange as well.
The move that caught everyone by surprise and sent shockwaves through the market as Hamilton walks away from a two-decade association with Mercedes
In 24 hours, Ferrari (BIT: RACE) surged 12.58% from $345.92 on 31 January to (+$43.53) $389.45 on 1 February when the Hamilton deal was confirmed and today trades at $381,04, according to research by Bombastic.
The spike of $43 and current trading price (+$35 since 29 February) alone was worth the signature of Sir Lewis and he still has 12 months to go and a full season with Mercedes to go!
Nevertheless, it is also most likely that it will be the F1 Deal of the Century. Speculation is rife regarding how much Hamilton will earn and for how many seasons with Ferrari. From some dubbing him “F1’s Billion Dollar Man” to sensible estimates that he will probably bank in the region of $100-million per season from the Italian team. But that is hearsay until the figures become public.
However, without a doubt, it is likely to be the most lucrative deal between a driver and an F1 team. And should also put Hamilton near the top of the Forbes list of the biggest earners in all international sports. The 39-year-old’s current fortune is estimated to be $300-million.
A veteran of 17 seasons in F1, Hamilton burst on the scene as Formula 2 Champion which he followed up with his sensational debut F1 season with McLaren powered by Mercedes. With whom he won his first F1 title in 2008.
A highly criticised move to Mercedes in 2013, kept the TriStar-in-a-circle badge on his chest for another six F1 world titles: 2014, 2015, 2017, 2018, 2019 and 2020. But since the narrow and highly controversial loss to Max Verstappen in 2021, Hamilton has not won a race in two years, by far his longest winless spell in the top flight.
Ferrari signing Hamilton has been on many Tifosi wishlists for years
Of his historic move to Maranello wished for by many Tifosi over the years, Hamilton said: “The time has come for me to start a new chapter in my life, and I will be joining Scuderia Ferrari in 2025. I feel incredibly fortunate after achieving things with Mercedes that I could only have dreamed of as a kid, that I now have the chance to fulfil another childhood dream, driving in Ferrari red.”
The report by online casino Bombastic revealed: “Interest in Ferrari stock, Googled on average 15,000 times a month, soared to over 28 times the average volume compared to the last 90 days. This in the wake of the Italian team announcing the British driver’s move from Mercedes, whom Hamilton had been driving with for 11 years.
“Shortly after the confirmation, searches for ‘Ferrari stock’ exploded over 2,700% worldwide on Feb 1st. At the same time, searches for ‘Mercedes stock’ saw a smaller 351% uplift in searches.
“Google Trends data suggests the Hamilton news may have attracted interest in the Italian automaker to all-time highs, over seven times the levels seen when Ferrari first listed on the New York Stock Exchange in October 2015.
“Hamilton’s move to Ferrari is one of the biggest announcements in the sport’s history, making headlines worldwide as he makes the unexpected transfer to Ferrari. The deal will likely have a ripple effect on the wider sport, particularly with other drivers tied to both teams.
“The findings offer a fascinating insight into the impact of the sport on companies’ stock prices and the influence that Hamilton has on F1. It will be interesting to see how share prices may change when Hamilton gets behind the wheel of a Ferrari.,” concludes the report.
This is how our Editorial duo Paul Velasco & Jad Mallak saw it in their NewsDesk Unplugged episode when the ‘Hamilton to Ferrari’ news broke: