ALEX PALOU ORDERED TO PAY MCLAREN $12M IN DAMAGES AFTER CONTRACT DISPUTE
Four-time IndyCar champion Álex Palou has been ordered by a London High Court to pay $12 million to McLaren Racing after breaching a contract with the team.
McLaren sued Palou after he backed out of two different agreements to join its IndyCar program, choosing to stay with Chip Ganassi Racing instead. McLaren originally asked for nearly $30 million in damages, but the amount was later reduced before the court decision.
The judge ruled that Palou must pay McLaren damages tied to the IndyCar team’s losses, such as lost sponsorship and performance revenue. However, the court rejected McLaren’s claims related to Formula 1 losses, which McLaren had also sought.
Palou commented the decision with disappointment.
“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’s current team owner, Chip Ganassi, also reiterated his support for the driver, emphasizing that the focus remains on racing and winning.
“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.
“We’re locked in on chasing another championship and defending our 2025 Indianapolis 500 victory. That’s where our energy is, and that’s where Alex’s focus is, on the track, doing what he does best: winning.”
The ruling highlights the financial and legal risks when drivers reverse their decisions in major motorsport contracts.
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