McLaren win $12 million court judgement over star driver contract

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McLaren

McLaren win $12 million court judgement over star driver contract

McLaren and Alex Palou have been battling in the courts

Chris Deeley

Friday 23 January 2026 15:56

IndyCar champion Alex Palou has been ordered to pay McLaren an eight-figure sum, after a High Court judgement against him this week.

McLaren took the Spaniard to court after he backed out of a contract signed with the team to move to their IndyCar team for the 2024 season, instead inking a new deal with Chip Ganassi Racing.

Palou had been McLaren's F1 test driver in 2023 after signing an already contentious deal with the papaya team, but informed the team in August of that year that he had 'no intention' of honouring the contract he signed.

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The 28-year-old later cited his belief that the team could not provide him with a pathway into a full-time F1 drive as his reason for breaching the contract.

Palou: McLaren claims completely overblown

The court judgement awards McLaren a sum in excess of $12m (which Ganassi will cover, as well as any legal costs yet to be determined) – just over half of what they had been seeking, with the judge dismissing their claims for F1-related losses.

In a statement after the judgement, Palou said: “The court has dismissed in their entirety McLaren's Formula 1 claims against me which once stood at almost $15m. 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.”

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F1 McLaren IndyCar Alex Palou