New court documents have revealed that McLaren is seeking more than $30 million in compensation from Alex Palou. The dispute arose when Palou decided to stay at Chip Ganassi Racing, breaching a contract he had signed with McLaren. Palou’s lawyers have asked McLaren to provide evidence of any losses incurred as a result of his decision. McLaren has modified its claims and included additional items in its case for damages. There is currently no court date set for the proceedings.
Palou has already participated in a livery and sponsor reveal with DHL for Chip Ganassi Racing and has undergone testing for the team in 2024. In response to Palou’s decision not to join McLaren, the team signed Dale Coyne driver David Malukas as a replacement. McLaren is seeking to recoup the losses it believes it has suffered due to Palou’s decision, rather than forcing Palou to join the team. Malukas, however, will miss the season opener due to a hand injury sustained in a cycling accident.
The case is being heard in the UK Commercial Court. McLaren claims that it has had to offer Pato O’Ward a new contract to secure his services in the long term, both in IndyCar and as an option as an F1 reserve driver. O’Ward’s contract has been extended by two years, and McLaren has had to offer him $10.2 million to ensure he remains with the team. McLaren argues that the loss of Palou posed a commercial threat and it needed to retain O’Ward to remain competitive in IndyCar and F1.
McLaren also claims that it expected to receive an additional $1.5 million from General Motors for having three “a-level” drivers, including Palou. However, McLaren alleges that GM does not rate Malukas as an “a-level” driver, resulting in a loss of $1.5 million. McLaren also states that it had to renegotiate its deal with NTT, a long-time Ganassi backer and Palou’s car sponsor, resulting in losses of $7,941,438. McLaren has now added Palou Motorsport SL, the team set up by Palou and his father, to its claim, alleging that it gave Palou’s contract signing-on bonus of $400,000 to the team.
Palou has the right to respond to McLaren’s accusations, and the case is expected to continue even after the start of the IndyCar season on March 10.