US EditionAlex Palou Ordered to Pay McLaren Racing $12M in Breach of Contract Suit
- On Jan 23, 2026, the UK High Court in London ordered Alex Palou to pay McLaren Racing more than $12 million for breaching a multi-year agreement after a five-week trial last year.
- Palou had signed in October 2022 to join McLaren for 2024–26 but in August 2023 chose to remain with Chip Ganassi Racing, citing no clear F1 path after McLaren signed Oscar Piastri, which McLaren disputes.
- The judgment itemized sponsor and performance losses, awarding $5.3 million for NTT Data, $2.5 million in other IndyCar sponsorship, $2 million in performance-based revenue, $1,312,500 in driver salary, and $500,000 related to General Motors.
- McLaren Racing says it will pursue legal interest and costs after Palou disputed Formula 1-related losses and Zak Brown welcomed the ruling.
- McLaren had to use four different drivers in 2024 after failing to secure Marcus Ericsson, and McLaren said sponsors NTT Data and General Motors reduced payouts; damages sought dropped from almost $30 million to $20.7 million.
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The Spanish driver lost his lawsuit. The court ruled that 4-time IndyCar champion Álex Palou must pay damages to his former team, McLaren.
McLaren won in 2025 the Formula 1 World Championship, with his pilot Lando Norris, and the World Constructors World Championship. This January 2026, and after three years of litigation, he also wins part of this judicial career he held against Álex Palou , four times champion of the IndyCar and the 500 Miles of Indianapolis. The verdict, dictated by the High Court of London, indicates that the team is right that the Spanish rider did not comply …
The long dispute between McLaren Racing and Álex Palou has already been settled by court. London’s commercial court has ruled in the proceedings initiated by the British squire against the Spanish pilot for breach of contract, setting a compensation that exceeds $12 million, a figure that amounts to just over 10 million euros. The ruling puts an end, at least in the first instance, to a conflict that has dragged on since 2022 and that has marked…
Palou Hit with $12M Ruling
Alex Palou, after winning the 2024 Grand Prix of Indy (Indianapolis) – A court has ordered IndyCar driver Álex Palou to pay $12 million to McLaren Racing after ruling that Palou breached his contract with the team. The decision stems from a long-running dispute over Palou’s decision to back out of agreements that would have placed him with McLaren’s IndyCar program. Instead, Palou remained with Chip Ganassi Racing, where he has continued to compe
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