Alex Palou blasted by management team as split confirmed over McLaren drama

Jamie Woodhouse
Alex Palou waves to the crowd. IndyCar Indy 500 May 2022.

IndyCar champion Alex Palou salutes the crowd. Indianapolis May 2022.

Monaco Increase Management, who negotiated the McLaren deal for IndyCar Championship leader Alex Palou, have issued a blunt and critical statement as they part ways over his McLaren contract dispute.

As claimed by The Associated Press, McLaren Racing CEO Zak Brown has circulated a letter to employees revealing that Palou has “no intention” of honouring his contract with the team for 2024 and beyond.

Currently serving as a McLaren F1 reserve driver but competing with Chip Ganassi Racing in IndyCar, Palou, following a dispute between Chip Ganassi and McLaren which went to the civil court, had been expected to line-up for Arrow McLaren SP from 2024.

Alex Palou and Monaco Increase Management split

Brown in his letter had confirmed that McLaren are still open to that possibility, though were also planning for IndyCar life without Palou after his “incredibly disappointing” actions, with McLaren having apparently offered assurances on the driving side, including a potential future seat in Formula 1, plus an advance on his 2024 salary.

But, as Palou looks set to force his way out of that agreement, the firm who secured it, Monaco Increase Management (MIM), have understandably taken a dim view of the Spaniard’s actions.

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“Monaco Increase Management is bitterly disappointed to learn about Alex Palou’s decision to break an existing agreement with McLaren for 2024 and beyond,” their statement reads.

“Together, we had built a relationship that we thought went beyond any contractual obligation and culminated in winning the 2021 IndyCar crown and tracing a path to F1 opportunities.

“Life goes on and we wish Alex all the best for his future achievements.”

PlanetF1.com understands that Palou, without support from Monaco Increase Management, opted to reject his valid agreement with McLaren for 2024 – an agreement the Spaniard himself agreed to and signed. As a result, Palou and his management have parted ways with MIM opting against continuing with the IndyCar star.

The saga comes at a time when the IndyCar stars are at the Indianapolis Motor Speedway, where the Gallagher Grand Prix is being contested on the Road Course.

Palou went into the event boasting a lead of 84 points over nearest Championship rival Josef Newgarden.

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