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London Court Opens McLarenÁlex Palou Contract Dispute Over Multimillion Damages

Palou contests McLaren’s valuation of losses tied to a 2022 deal he abandoned the following year.

Overview

  • Palou attended an initial hearing in London as McLaren pursues compensation for an alleged breach tied to his 2023 decision to remain with Chip Ganassi Racing.
  • Reported figures for McLaren’s claim vary by outlet, with the latest detailed reporting citing about €17 million (roughly $19.7 million) after earlier estimates as high as $28.5 million and others mentioning up to $33 million.
  • McLaren argues it suffered sporting and commercial setbacks and incurred extra costs, including reserve-driver arrangements such as with Pato O’Ward and expenses for simulator and F1 testing.
  • Palou’s legal team says the losses are overstated and largely mitigated, rejecting that he owes the sums McLaren seeks.
  • Further hearings are slated through the coming weeks, with testimony expected from McLaren CEO Zak Brown and proceedings projected to run into November.