Alex Palou has to McLaren for the breach of agreement on IndyCar side, while the team loses its case against the Spaniard on F1 side.
The five-year trial saw some end after London Court awarded more than 12 million dollar damage to McLaren from Palou for breach of IndyCar contract. It is nearly half the amount that the British team sued the Spaniard for at the start of the trial.
McLaren got nearly six million dollars as compensation for period starting from 2024 until 2027 season. It secured about 3.5 million dollars it lost on performance-based revenue and amount the team had to pay more to Pato O’Ward to secure his services plus loss on payment from General Motors to run a drive like Palou.
But McLaren’s plea on F1 side was dismissed along with the pay for court hearing. McLaren’s Zak Brown seemed satisfied mostly, similar to Alex Palou, but the Spaniard felt a bit undone on the damage he has to pay to McLaren on IndyCar breach. The Spaniard is looking at options to see what can be done.
He thanked Otmar Szafnauer, who has history with McLaren during the tussle between the British team and Alpine after Oscar Piastri was snatched by the former in F1. Palou also continues to enjoy full backing from Chip Ganassi Racing, who reiterated support post the hearing.
“The court has dismissed in their entirety McLaren’s Formula One claims against me which once stood at almost $15m,” wrote Palou in a statement. “I’d like to thank Otmar Szafnauer for his expert assistance. The court’s decision shows the claims against me were completely overblown.
“It’s disappointing that so much time and cost was spent fighting these claims, some of which the Court found had no value, simply because I chose not to drive for McLaren after I learned they wouldn’t be able to give me an F1 drive.
“I’m disappointed that any damages have been awarded to McLaren. They have not suffered any loss because of what they have gained from the driver who replaced me. I am considering my options with my advisors and have no further comments to make at this stage. I look forward to the upcoming season with Chip Ganassi Racing.”
Here’s the judgement: https://www.judiciary.uk/wp-content/uploads/2026/01/McLaren-v-Alpa-Racing-REDACTED.pdf
