McLaren handed $12 million settlement in case against driver
McLaren has been awarded a $12 million settlement in its legal dispute with IndyCar driver Alex Palou.
A court in London ruled in favour of the Woking-based outfit, with breach of contract cited among other claims filed by McLaren against the 28-year-old.
The High Court ruling comes following a trial which spanned five weeks between both parties. McLaren had initially sought compensation in the region of $30 million.
However, the figure was reduced to $20.7 million, as the team sought to reclaim losses it claims were tied to Palou pulling out of their initially agreed contract.
Brown reacts to court ruling against Palou
McLaren CEO Zak Brown, in his reaction to the ruling, described it as entirely appropriate. The 54-year-old further praised the ruling for recognising the pecuniary impact Palou’s actions cost the team.
“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 honoured what had been agreed,” Brown said.
“We thank the court for recognising the very significant commercial impact and disruption our business suffered as a result of Alex’s breach of contract with the team,” he concluded.
Palou disappointed with court ruling
Palou, on his part, expressed his disappointment with the verdict handed down by the court, the four-time IndyCar champion adjudging the claims as overblown.
“The court has dismissed in their entirety McLaren’s Formula 1 claims against me, which once stood at almost $15 million,” Palou said in a statement.
“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 F1 drive,” he added.
The 2025 Indianapolis 500 champion further stated he would be considering all his options.
“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 and McLaren saga
The dispute dates back to the summer of 2022, when McLaren and Palou agreed on a move to the Arrow McLaren IndyCar team. However, the four-time series champion’s team, Chip Ganassi Racing (CGR), only agreed to this move based on the condition that the Spaniard would drive for the team in 2023 before any possible exit.
The parties involved eventually agreed Palou would combine his role at Chip Ganassi Racing with a test and development role at the McLaren F1 outfit before a switch in 2024.
However, Palou later announced he would continue driving for CGR, citing issues related to losing confidence in the possibility of McLaren securing a Formula 1 seat for him. McLaren subsequently filed a lawsuit for breach of contract.
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