McLaren partially wins UK lawsuit against Palou over aborted move

McLaren Racing on Friday won part ‍of its lawsuit against four-time IndyCar champion Alex Palou over his aborted move ​to the team, with London’s High Court ruling the ‌reigning Formula One world champion was owed around USD 12 million.

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

McLaren has emerged as a dominant force in Formula One, with Lando Norris winning the drivers’ title last year as the team won the constructors’ title.

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

But Palou, who had signed a deal with McLaren, ultimately stayed with Chip Ganassi Racing and ​won three consecutive IndyCar titles ⁠from 2023 to 2025, plus May’s Indianapolis 500.

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PALOU SAID DREAM TO RACE IN F1

McLaren’s lawyers argued at a trial last year that the team missed out on “the on-track success it would otherwise ‌have achieved” with Palou as its driver and claimed USD 19.7 ‌million.

Palou’s lawyers said the Spanish driver owed McLaren nothing and he gave evidence in October that he felt McLaren ‍misled him about his prospects of racing in Formula One.

Judge Simon Picken ruled in McLaren’s favour in relation to its claim it had ‍to pay additional sums to its Mexican driver Pato O’Ward, amounting to just over USD 1.3 million, because he had “greater leverage” when negotiating his salary.

McLaren also won parts of its case in relation to performance-based prize money and sponsor payments it said it would have earned if Palou drove for McLaren.

FILE PHOTO: Palou, who had signed a deal with McLaren, ultimately stayed with Chip Ganassi Racing and ​won three consecutive IndyCar titles ⁠from 2023 to 2025, plus May’s Indianapolis 500.
| Photo Credit:
AP

In total, McLaren was awarded at least USD 10.2 million, plus another USD 2 million to USD 2.5 million depending on expert evidence.

McLaren Racing CEO Zak ⁠Brown said in a statement: “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.”

Palou ⁠said in a statement that the ruling “shows the claims against me were completely overblown”, adding: “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.”

Chip Ganassi said: “Alex has our full support, now and always.”

Published on Jan 23, 2026