A judge in London’s High Court has sided with McLaren Racing in its breach of contract suit against four-time IndyCar Series champion Alex Palou.
Palou has been ordered to pay McLaren more than $12 million, though, McLaren initially sought nearly $30 million in damages.
Palou signed for McLaren in 2022, but after IndyCar team owner Chip Ganassi executed his option on Palou for the 2023 team, an arrangement was brokered that Palou would not join McLaren until 2024.
However, after winning the IndyCar title in 2023, Palou reneged on his contract with McLaren.
“This is an entirely appropriate result for McLaren Racing. As the ruling shows, we clearly demonstrated that we fulfilled every single contractual obligation towards Alex and fully honored what had been agreed,” said Zak Brown, head man for McLaren. “We thank the court for recognizing the very significant commercial impact and disruption our business suffered as a result of Alex’s breach of contract with the team.”
Palou issued a statement on the judgement.
“The court has dismissed in their entirety McLaren’s Formula 1 claims against me which once stood at almost $15 million,” Palou said. “The court’s decision shows the claims against me were completely overblown. It’s disappointing that so much time and cost was spent fighting these claims, some of which the Court found had no value, simply because I chose not to drive for McLaren after I learned they wouldn’t be able to give me an F-1 drive.
“I’m disappointed that any damages have been awarded to McLaren. They have not suffered any loss because of what they have gained from the driver who replaced me. I am considering my options with my advisors and have no further comments to make at this stage.”
Palou has won three consecutive IndyCar championships and the 2025 Indianapolis 500. Ganassi said in a statement he continues to stand by his driver.
“Alex has our full support, now and always. We know the character of our driver and the strength of our team, and nothing changes that,” Ganassi said. “While we respect the legal process, our focus is exactly where it should be: on racing, on winning, and on doing what this organization has always done best, competing at the highest level.”
