McLaren initiates legal action against Palou

Amber Pietz/Penske Entertainment

McLaren initiates legal action against Palou

IndyCar

McLaren initiates legal action against Palou

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The first step in the legal process has been taken by McLaren Racing against Alex Palou, who is being sued by the British team in the UK.

Details of the complaint aren’t currently known, but at a minimum, they are likely to revolve around the recouping of advance monies paid to the Spaniard for services he was expected to render in 2024 as a racing driver for McLaren Racing’s Arrow McLaren NTT IndyCar Series team.

“We made a significant investment in Alex Palou, looking forward to racing with him in 2024,” said McLaren CEO Zak Brown. “We’re placing our trust in the legal system to resolve this matter and will keep our comments at that.

“As a team, we’re turning our focus to the final races this season and on our plans for 2024, which we’ll announce once we’re ready.”

Palou, who signed a one-year deal to remain with Chip Ganassi Racing in 2023, was recently revealed by McLaren’s Brown to have signed a contract to switch teams at the end of the season, despite having an alleged non-compete clause in his Ganassi contract that disallowed the signing of any new contracts before September 1.

The validity of Palou’s McLaren contract notwithstanding, Brown stated in an email to the Arrow McLaren team last Friday that, “We have paid him a significant first payment toward his 2024 season in addition to the millions of dollars toward developing him in our Formula 1 testing program and in his reserve driver role with a potential drive in F1 in the future.”

The matter is exclusively between McLaren and Palou, and does not involve Chip Ganassi Racing.

RACER has confirmed one potential legal angle will not be pursued by McLaren, and that involves attempting to hold onto Palou. RACER understands Arrow McLaren will seek a new driver for the No. 6 Chevy that was meant for Palou to drive alongside Pato O’Ward and Alexander Rossi.

Felix Rosenqvist, who joined Arrow McLaren in 2021, is expected to sign with a different IndyCar team in 2024. Palou is believed to have signed a multi-year extension with Ganassi that will keep him in the No. 10 Honda for the foreseeable future.

This story was updated after its original publication to include Zak Brown’s quote.

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