Sergio Perez was rewarded with a new contract by Red Bull before the Canadian Grand Prix, although there are question marks over whether he’s deserving of a new deal due to his recent form.

Damon Hill was talking about the Mexican driver’s Canadian Grand Prix on the Sky Sports F1 Podcast.

Both Saturday and Sunday were disastrous for Perez as he failed to get out of Q1 and then made no progress in the race before crashing out.

He’s slipped to 5^th in the Constructors’ Championship and it’s difficult to see him overtaking the likes of Carlos Sainz, Lando Norris or Charles Leclerc to match finishing runner-up to Max Verstappen like he did last year.

Hill has now shared how it could still get worse for Perez if he doesn’t step up his performance soon.

He may have put pen to paper on a new contract but that doesn’t necessarily provide him with too much security.

His new deal can run until 2026, but he will almost certainly need to hit certain targets to trigger an extension.

Damon Hill shares his concerns about Red Bull star Sergio Perez

The F1 grid is closer than it ever has been and although Max Verstappen still looks like the heavy favourite to win a fourth straight championship, three other teams believe they can snatch victories away from Red Bull.

Ferrari, McLaren and Mercedes may have all been secretly delighted that Red Bull had offered Perez a new deal.

The 34-year-old has failed to outqualify any of their drivers in the past three races and only scored four points since the Emilia Romagna Grand Prix.

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He appears to be low on confidence and team principal Christian Horner, who would have played a huge role in the decision to extend Perez’s contract, couldn’t defend his performance in Canada.

After the race, Horner said live on Sky Sports F1: “It was a horrible weekend for Checo and obviously, we picked up some damage. He’ll need to come back strong in Barcelona.”

Hill has shared his thoughts on his tough time in the last few races and what he needs to improve to make things right.

READ MORE: Everything you need to know about Red Bull Racing from engine to Ford links

Sergio Perez needs a strong Spanish Grand Prix

Talking about Perez’s disastrous weekend, Hill said: “He [Sergio Perez] could have avoided a safety car by parking it somewhere but it’s very difficult to get rid of your car in Canada, there’s not many places you can hide it.

“He has had a mare, he’s had an absolute nightmare! From going from looking like he was three-tenths off Max [Verstappen] and being comfortably up there and there to support him, to now the last few races have just been absolute catastrophes for poor old Checo.

“Slightly self-inflicted I feel in Monaco but he didn’t qualify well! His last two qualifyings have been awful.

“Can it get any worse? Yes, it can. That’s the only thing that you can say about it, just when you think it can’t get any worse it does, but let’s hope it doesn’t let’s hope he gets it on the front row.”

The upcoming Spanish Grand Prix should theoretically be a race that suits Perez much better.

The curb riding issues Red Bull have faced in the past few races won’t be as much of a factor and Perez recorded the fastest lap at the Circuit de Catalunya last year on the way to a one-two finish for the team.

However, he’s already on the back foot after picking up a three-place grid penalty for driving back to the pits with substantial damage following his crash in Canada.

If he can’t improve on his qualifying performances then that would mean starting on the back row of the grid, which would be a disaster for his hopes of proving his growing number of doubters wrong.

Christian Horner issues Max Verstappen admission amid ‘troubled waters’ at Red Bull

The Milton Keynes outfit were an almost all-conquering force last season as Red Bull won 21 of the 22 Grand Prix. Verstappen even gifted Red Bull 19 of their victories en route to sealing his third consecutive drivers’ title. But their domination has diminished somewhat this term.

Verstappen burst out of the gates to win four of the first five Grand Prix plus the F1 Sprint at the Chinese GP. The 26-year-old possibly only failed to also add the Australian GP to his tally as Ferrari driver Carlos Sainz won after a brake issue forced the Dutchman to retire on Lap 3.

Photo by SCOTT BARBOUR/POOL/AFP via Getty Images

Christian Horner admits Max Verstappen is revealing how Red Bull ‘feels’

Yet since topping both podiums in Shanghai, Verstappen has only won the Emilia Romagna GP and the Canadian GP. He also won the Sprint at the Miami GP but Lando Norris achieved his first Grand Prix victory after the McLaren driver ran clear of Verstappen after a safety car.

Norris also came within 0.725 seconds of Verstappen to win at Imola and also threatened to win the Canadian GP. George Russell of Mercedes was also in the mix for victory in Montreal last time out. While Verstappen’s P6 was the best that Red Bull managed in the Monaco GP.

Difficulties riding the kerbs around the Circuit de Monte Carlo meant Red Bull could not rival McLaren and Ferrari. Verstappen was not shy to raise his concerns at the Monaco GP, either. The Dutchman bemoaned how it was ‘very difficult’ to get the RB20 to do as he best sought.

Verstappen feared Red Bull’s woes with riding the kerbs would continue at the Canadian GP, as well. But team principal Horner takes no issue with Verstappen voicing his concerns with Red Bull’s performances. Instead, he admits the 26-year-old is revealing how the team feels.

“During the course of a world championship, sometimes you get into troubled waters,” said Horner, via quotes by Speedweek. “And Max is a demanding customer, like everyone else in the team. So, he only says what the team feels. Everyone strives for top performance.”

The Spanish GP will prove if Red Bull are truly in ‘troubled waters’

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Horner will hope the Spanish GP next Sunday sees Red Bull and Verstappen enjoy a cleaner weekend. McLaren, Ferrari and Mercedes have all shown they can challenge the RB20 with the right track. The Circuit de Barcelona-Catalunya is also a mixture of every track F1 visits.

The removal of the flip-chicane to finish a lap in 2021 will help Red Bull avoid the issues the team faced with riding kerbs in Monaco or Montreal. But Barcelona will prove if Mercedes are now a genuine threat to Red Bull with the circuit’s greater mixture of corner speed ranges.