When Scott Speed received his termination letter from Red Bull Racing in late 2010, it set off a chain of events that would lead to one of motorsport’s most notable legal battles. The former Formula One driver who had transitioned to NASCAR filed a $6.5 million breach-of-contract lawsuit against the powerhouse team that had once backed his racing career.
The lawsuit came on the heels of what Speed claimed was a contractual betrayal. Despite having signed what he understood to be a three-year contract extension through 2013, Speed found himself without a ride for the 2011 season. Red Bull had not only terminated his position but had done so at a time when securing another competitive NASCAR seat was nearly impossible.
The money involved wasn’t a small change. Speed’s contract reportedly promised him $1.5 million for 2011, with raises coming in the following years. He’d already taken a pay cut earlier that year when his salary dropped from $1 million to $500,000. Then in November, he learned he was being replaced by Kasey Kahne for the next season.
Scott Speed’s Battle Against Red Bull Racing
“They can’t say ‘We’ll give you three more years’ and then at the end of the season say ‘Just kidding,'” Speed said about Red Bull. “They think they have a way of getting out of my contract. I think they’re crazy.”
Speed also complained about how the team had been cutting corners. “I know we definitely were cutting the budget down,” he said. “The package we had this year was terrible, especially in the middle of the year. We were battling back there with the Taco Bell car… when like three months ago we were running in the top 10.”
What really made Speed mad was how Red Bull handled his firing. He claimed they wouldn’t let him look for other jobs until after the final race of the season. In his words, “They simply kept me with a sock in my mouth and hands tied behind my back until after the last race.”
The atmosphere at Red Bull wasn’t great either. “They were like, ‘We’re going to keep one team. Show us what you’ve got.’ It should have been a reality TV show. I felt so terrible for the guys let go,” Speed recalled.
For Speed, the lawsuit wasn’t just about the money. “At the end of the day, I filed the lawsuit because I have to, to take care of my family,” he explained. He didn’t want to put his own staff in the same tough spot that Red Bull had put him in.
Red Bull didn’t say much about the lawsuit publicly. They reportedly claimed they could release Speed if he wasn’t in the top 16 in points. Speed finished 30th that season but argued that the team’s budget cuts made it impossible for him to perform well.
The whole mess showed just how quickly things can change in racing even when you’re backed by a big name like Red Bull. One day you’re behind the wheel the next day you’re heading to court.