A high-stakes legal showdown
Alex Palou has taken the stand at London’s High Court in a case that pits the four-time IndyCar champion and reigning Indy 500 winner against McLaren. McLaren Indy LLC is seeking nearly $20 million after Palou admitted breaching an agreement to join its IndyCar team, with the dispute now centering on who said what — and when — regarding a potential Formula 1 opportunity.
Complicated contracts and shifting prospects
Palou initially signed a contract with McLaren on March 4, 2022, covering 2023–2025, with an option — but not an obligation — for an F1 seat in 2024 after a year as a reserve. However, in August 2022 McLaren signed Oscar Piastri to replace Daniel Ricciardo, a move confirmed by the Contract Recognition Board in September.
Palou says he later signed a new deal with McLaren for 2024–2026 on October 1, 2022, and claims Zak Brown told him it was not Brown’s decision to hire Piastri. According to Palou’s testimony, he was told Piastri’s performance would be evaluated against his for the 2024 seat, keeping his hopes intact at the time. As dynamics shifted, Palou says he increasingly looked at staying with Chip Ganassi Racing, especially as CGR signaled openness to F1 testing opportunities.
Denials and allegations
On the stand, Palou emphatically denied "stringing McLaren along" or using the IndyCar drive merely as leverage for F1. When pressed on whether he misled McLaren, he responded that the line of questioning was "twisting the story." He further claims an F1 offer used in discussions was "not genuine" and served as a negotiating tactic. A contract clause within his Ganassi deal, of which his lawyers were aware, also complicates the timeline around his ability to sign with McLaren at various points.
With both sides presenting starkly different narratives about intent and promises, the court’s verdict will hinge on the fine print and the credibility of testimony. The trial continues.
