MCLAREN VS. PALOU: A $20.7M LAWSUIT OVER BROKEN PROMISES AND DISAPPEARING MESSAGES

McLaren contends it lost revenue when Palou backed out ahead of the 2024 season and the team had to scramble to find another driver. McLaren wanted Indianapolis 500 winner Marcus Ericsson, who had already committed to Andretti Global, so it instead used four different drivers that season...

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Closing arguments were presented in McLaren Racing's breach of contract suit against IndyCar star Alex Palou, who signed two different contracts with the team before deciding not to leave Chip Ganassi Racing because he presumed McLaren would never give the Spaniard a seat in Formula 1. The five-week trial in London’s High Court began in late September, and it is unclear when a ruling will be issued. McLaren initially sought almost $30 million in damages, but that number was reduced to $20.7 million as the racing juggernaut seeks to reclaim money allegedly lost in sponsorship, driver salaries, and performance earnings. Palou has won three consecutive IndyCar titles and the Indianapolis 500 since this saga began. He has four IndyCar titles in the last five seasons. Palou first signed with McLaren in 2022 to drive for its IndyCar team in 2023, but Ganassi pushed back and exercised an option on Palou for the 2023 season. The matter was decided through mediation, with McLaren covering Palou’s legal costs. Palou could not join McLaren until 2024, but was permitted to be the reserve and test driver for the F1 team in 2023. When McLaren signed Oscar Piastri for its F1 team, and Palou’s performance with Ganassi in IndyCar was so dominant, the driver decided he did not want to move to McLaren’s IndyCar team and reneged on his contract. Palou has maintained that his contracts with McLaren were “based on lies,” and he'd never have a chance to race in F1. His counsel has also accused McLaren Racing CEO Zak Brown of destroying evidence by deleting WhatsApp messages related to the case.

THE DAMAGES