Four-time IndyCar champion Álex Palou has been ordered to pay McLaren Racing more than $12 million following a breach of contract lawsuit decided Friday.
The legal battle stemmed from conflicting agreements Palou signed in 2022. The Spanish driver had a contract with McLaren Racing while simultaneously committing to continue racing for Chip Ganassi Racing, his current IndyCar team.
McLaren announced in July 2022 that Palou would join its organization for 2023. Hours later, Ganassi released a statement saying Palou would remain with the team and had already exercised his option for 2023. The public dispute revealed Palou had signed paperwork with both organizations.
The court sided with McLaren, determining Palou violated his contractual obligations to the Formula 1 constructor and its racing programs. The $12 million judgment represents damages McLaren claimed from the failed deal.
Palou has won IndyCar championships in 2021, 2023, and 2024 while driving for Ganassi. He briefly tested for McLaren's Formula 1 team during the contract dispute but ultimately stayed in IndyCar rather than pursuing a full-time F1 seat.
The case highlighted tensions between IndyCar teams and Formula 1 organizations competing for top driving talent. McLaren operates entries in both series, making Palou's simultaneous commitments particularly problematic.
Palou has not publicly commented on the judgment. He remains under contract with Ganassi and is expected to defend his IndyCar title in 2025. Whether the $12 million payment affects his racing future or relationship with either team remains unclear.
