The four-time IndyCar champion Alex Palou arrived at court in London on Monday for McLaren’s contract dispute lawsuit with the Spanish driver.
Palou had agreed to join Arrow McLaren — McLaren’s IndyCar arm — in 2022, signing a contract with the team for the 2023 season while driving for Chip Ganassi Racing before subsequently reneging on the deal and remaining with Ganassi.
Per Reuters, McLaren is claiming $19.7 million to cover losses and claims that it missed out on “the on-track success it would otherwise have achieved” if Palou had joined the team, while Palou’s lawyers have said McLaren’s alleged losses are vastly inflated and that, as the losses have been mitigated by the team, Palou owes McLaren nothing.
The 28-year-old arrived at the Commercial Court in London for the first day of proceedings. Reuters reported that Palou and McLaren CEO Zak Brown are set to give evidence at the trial, which is expected to finish in November.
Palou won the Indianapolis 500 in May (James Gilbert / Getty Images)
On July 13, 2022, it was announced that Palou had signed with McLaren, with Palou sharing the news on social media.
“I’m extremely excited to join the driver roster for such an iconic team as McLaren,” said a quote attributed to Palou in the McLaren press release. “I’m excited to be able to show what I can do behind the wheel of a Formula One car and looking at what doors that may open. I want to thank everyone at Chip Ganassi Racing for everything they have done for me.”
Earlier that day, however, Chip Ganassi — the owner of the racing team — announced that he had triggered an option to retain the Spaniard. Palou later stated that Ganassi’s news release was issued without his permission or knowledge.
“I have recently learned from the media that this afternoon, without my approval, Chip Ganassi Racing issued a press release announcing that I would be driving with CGR in 2023,” Palou wrote on X, adding, “As I have recently informed CGR, for personal reasons, I do not intend to continue with the team after 2022.”
An agreement was eventually reached, allowing him to continue with Ganassi for the 2023 season while operating as McLaren’s F1 test and reserve driver. Palou was set to join Arrow McLaren for 2024.
However, rumours started to circulate in 2023 that Palou might not be headed to McLaren’s F1 team after all. Palou has since continued with Ganassi and is signed with the team through 2026.
Mexican IndyCar driver Pato O’Ward, who has driven for Arrow McLaren since 2020, replaced Palou as McLaren’s reserve driver in F1.
Palou is one of the most successful IndyCar drivers of all time, having won the IndyCar title in 2021, 2023, 2024 and 2025. His four championship victories put him behind only A.J. Foyt (7) and Scott Dixon (6) all-time. Across his 98 starts in six IndyCar seasons, he has 19 race victories, including this year’s Indy 500.
(Top photo: Kirsty Wigglesworth / AP )