The hearing between McLaren and Alex Palou is underway. The British team has taken the IndyCar champion to court for breach of contract. In 2022, Palou signed an agreement to race for McLaren in the IndyCar from 2024, with the prospect of a Formula 1 seat. However, with the arrival of Oscar Piastri, he ultimately stayed with Chip Ganassi Racing. Palou defends himself by stating that he was promised a Formula 1 contract, but Zak Brown vehemently denies this.
Palou stated in London this week that McLaren had promised him a future in Formula 1, but the arrival of top talent Oscar Piastri forced him to stay with Chip Ganassi. Zak Brown refuted this version of events. “I never led Alex (Palou) on,” the American declared. “I never told him he was in contention for a seat in 2023,” he referred to Piastri’s debut year. “There was simply an option to transition to Formula 1 in the future.”
According to Brown, Palou was always part of a reserve structure in which the Spaniard was on standby within the McLaren ranks. Should anything unexpected happen to the regular drivers, he would be able to step in immediately. This scenario was referred to as ‘Plan B’. If Oscar Piastri did not meet expectations, there was a ‘Plan C’, where Palou would still be considered for a permanent seat. With this, Brown denies that McLaren ever guaranteed him a Formula 1 seat.
‘Disruptive for the Team’
The announcement of Palou’s departure hit Brown like ‘a grenade thrown into the room’. With the lawsuit, McLaren now hopes to recover the signing costs, lost revenues, and sponsorship deals associated with Palou’s test program – reportedly worth around twenty million dollars. The team had to negotiate a new agreement with NTT Data, which was closely involved in the collaboration with Palou. His departure is said to have cost the team millions. In addition, McLaren had to invest heavily in promoting IndyCar driver Lando Norris, who took on a prominent test and reserve role within the Formula 1 team in Palou’s place.
“We didn’t just lose a championship driver,” Brown explained in his testimony. “We had to rotate drivers in Palou’s car and also dealt with injuries to other drivers. All of this was hugely disruptive for the team. We should have been focusing on track performance and attracting new sponsors, but that’s difficult when you don’t know who’s in your car.” In addition to the financial damage, McLaren claims that Palou also caused reputational damage. The court is further investigating the statements; the verdict is expected in November.
