IndyCar champion admits breach of contract as McLaren sue him for F1 U-turn
IndyCar champion Alex Palou has confessed in court documents that he breached his contract with McLaren as the racing outfit look to sue him.
The team are looking to recoup at least $23million (£18.2m) in losses they believe the failed move has cost them. McLaren had signed Palou back in July 2022 and were ready to use him as their IndyCar driver whilst also having him as their reserve driver in Formula 1.
Palou has admitted in a 20-page court document he changed his mind about joining McLaren ahead of the 2024 season after he “lost trust and confidence that (McLaren) genuinely intended to support his ambition to race in the Formula One Series and decided to continue racing with Chip Ganassi Racing in the Indy Car Series instead.”
The documents, seen by AP, go on to say that Palou “therefore admits that he renounced his contractual obligations” with McLaren and “the real issue between the parties is as to the quantum of any damages which the Defendants are liable to pay."
The dispute regarding the 26-year-old, who is a two-time Indy Car champion, began when Palou contested that Chip Ganassi Racing had an option to sign him for 2023 when he originally signed for McLaren. The driver and his team began discussions and a resolution was eventually reached.
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It was decided Palou would drive for Ganassi in 2023 but was also McLaren's reserve F1 driver when it did not interfere with his involvement in IndyCar. He was able to take part in a practice session, tested for the F1 team on track and in a simulator and was the reserve driver for McLaren at the Miami Grand Prix back in May.
In August, McLaren Racing CEO Zak Brown was contacted and told by attorneys for Palou that Palou would not be joining McLaren and had instead signed a three-year extension with Ganassi, tying him down until 2026.
Alex Palou opted against joining McLaren despite signing a deal with themThe near $23m figure that McLaren want in damages cost as a result of future sponsorship tied to Palou joining McLaren, the costs of using him as a reserve F1 driver, how much McLaren spent developing Palou for F1 and a $400,000 (£316,000) advance on his 2024 salary.
McLaren believe they missed out on nearly $15.5m (£12.2m) in lost revenue under official partner agreements with sponsors NTT Data and General Motors that anticipated Palou would be the team's driver. IndyCar driver Pato O'Ward last week was named Palou's replacement as McLaren's F1 reserve driver.
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