McLaren is reportedly demanding $30 million in an ongoing lawsuit against IndyCar champion Alex Palou. The hearing against the Spanish driver began on Monday in London. McLaren claims financial harm after Palou withdrew from a multi-year agreement. The 28-year-old driver signed a contract in 2022 to race for the British team in IndyCar from 2024, with the prospect of a Formula 1 contract. However, he ultimately stayed with Chip Ganassi Racing.
The situation between Alex Palou and McLaren has been complex for some time. Midway through 2022, the Spaniard tried to break away from his contract with Chip Ganassi Racing. McLaren and the opportunity to race in Formula 1 were enticing. However, the IndyCar team activated an option to retain him for 2023. The dispute was resolved behind closed doors; Palou stayed with CGR through a new one-year contract, but at the same time also became a reserve driver for McLaren in Formula 1.
McLaren Takes Palou to Court
Despite McLaren paying him a signing bonus of $400,000 in January 2023 for a deal from 2024 to 2026, Palou decided not to honor the agreement. He extended his collaboration with Chip Ganassi’s team. CEO Zak Brown made it clear at the time that the Spaniard had indicated he did not intend to fulfill his obligations in IndyCar or Formula 1. McLaren subsequently filed a lawsuit, emphasizing that it did not want to force the driver to race for the team.
Instead, the British racing team is demanding damages of approximately 30 million dollars, as reported by business magazine Forbes. McLaren seeks to recover the signing costs, lost revenues, and external income associated with Palou’s testing program. Palou defends himself by arguing that the agreement was based on an eventual transfer to Formula 1. However, McLaren gave both Lando Norris and Oscar Piastri long-term contracts, preventing the Spaniard from advancing to the premier class. Therefore, his lawyers argued on Monday that Palou owes McLaren nothing and that the team is simply trying to ‘strip him bare’. The lawsuit is expected to last until November, with Palou and McLaren CEO Zak Brown as witnesses.
