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1h ago

London Trial Opens in McLaren’s Damages Suit Against Alex Palou

The case turns on how much McLaren can recover after Palou admitted breaching a 2022 agreement to join its IndyCar team.

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Aug 31, 2025; Lebanon, Tennessee, USA; Chip Ganassi Racing driver Alex Palou (10) of Spain during an autograph session prior to the Borchetta Bourbon Music City Grand Prix at Nashville Superspeedway. Mandatory Credit: Randy Sartin-Imagn Images
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Overview

  • McLaren is seeking about $19.7 million in damages, with some filings reported as placing the potential claim closer to $30 million.
  • The team says losses include reworked sponsorships and higher driver costs, citing an NTT-related shortfall near $23 million and a $5.1 million pay increase to retain Pato O’Ward.
  • Palou’s lawyers argue McLaren’s figures are vastly inflated and contend the team mitigated any losses, asserting he owes nothing.
  • Court filings detail a proposed $9 million base IndyCar salary over three years for Palou and a $400,000 signing bonus that he repaid.
  • Palou and McLaren CEO Zak Brown are expected to testify, with hearings staged over several weeks to a planned conclusion in November, and McLaren says Chip Ganassi Racing agreed to cover any court-ordered sum.