London Court Orders Álex Palou to Pay McLaren About $12 Million for Contract Breach

Overview

• The High Court in London found Palou breached agreements tied to a planned move to Arrow McLaren’s IndyCar team and awarded roughly $12 million.
• The award centers on lost sponsorships and performance-related income in IndyCar, including about $5.3 million linked to NTT Data, $2.5 million in other sponsorship, and $2 million in performance payments.
• McLaren plans a further hearing to seek interest and reimbursement of legal costs following the judgment.
• Palou said he was disappointed by the damages and noted the court dismissed McLaren’s F1-related claims, as he reviews potential legal options.
• The dispute stems from Palou’s decision to remain with Chip Ganassi Racing rather than join McLaren’s IndyCar lineup for 2024 after earlier signing agreements in 2021–22.