McLaren’s $20 million UK lawsuit against Palou over aborted move begins

McLaren Racing are seeking around $20 million in its London lawsuit against four-time IndyCar champion Alex Palou over his aborted move to the team, though the Spanish driver’s lawyers on Monday argued that Palou owed McLaren nothing.

McLaren Racing, which runs the reigning Formula One world champion and the Arrow McLaren team in U.S.-based IndyCars, are suing Palou after his move fell apart three years ago.

McLaren has emerged as a dominant force in Formula One, winning the constructors’ title last year for the first time since 1998. It is on course to win both titles this season, with Oscar Piastri leading Lando Norris in the drivers’ standings.

Its IndyCar team, however, is relatively new, and Palou agreeing a deal in late 2022 to join was a coup, according to McLaren’s lawyers.

Palou ultimately stayed with Chip Ganassi Racing and won three consecutive IndyCar titles from 2023 to 2025, plus May’s Indianapolis 500.

McLaren’s lawyers say the team has missed out on “the on-track success it would otherwise have achieved” with Palou as its driver and is claiming $19.7 million to cover losses, including in relation to sponsorship deals and other drivers’ salaries.

Palou has admitted breaching his contract, but his lawyers say McLaren’s alleged losses are vastly inflated and that McLaren has mitigated any losses.

His legal team have accused McLaren of trying to “take Mr Palou to the cleaners”, though McLaren say Chip Ganassi Racing have agreed to cover any sums the court might rule Palou owes.

Palou and McLaren Chief Executive Zak Brown are among the witnesses expected to give evidence at the trial, which is due to conclude in November.

Published on Sep 29, 2025