Alex Palou disputes McLaren $12m damages ruling in high-profile contract clash
McLaren has been awarded $12million in damages after taking legal action against former reserve driver and IndyCar champion Alex Palou
IndyCar champion Alex Palou has issued a statement arguing that “the claims against me were completely overblown” after McLaren was awarded more than $12 million in damages over a contract breach.
And he has expressed his disappointment “that any damages have been awarded to McLaren” as the team “have not suffered any loss” as a result of the saga.
Alex Palou reacts after McLaren awarded $12million in damages
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It was confirmed last Friday (January 23) that McLaren has won in excess of $12m to compensate for the commercial loss and disruption suffered as a result of Palou’s breach of contract in 2023.
Palou reneged on a deal to join McLaren’s IndyCar team for 2024, with a view to a potential future F1 opportunity, in favour of remaining with Chip Ganassi Racing.
McLaren launched legal action against Palou, the team’s former F1 reserve driver, with the case heard at London’s High Court last year.
A judge ruled last week that McLaren has been awarded damages in excess of $12m (£8.8m/€10.2m at current exchange rates).
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In a statement provided to PlanetF1.com by Chip Ganassi Racing, Palou thanked expert witness Otmar Szafnauer, the former Aston Martin and Alpine F1 team boss, for his involvement in the case and expressed his disappointment that the outcome did not go in his favour.
Palou said: “The court has dismissed in their entirety McLaren’s Formula One claims against me which once stood at almost $15m.
“I’d like to thank Otmar Szafnauer for his expert assistance.
“The court’s decision shows the claims against me were completely overblown.
“It’s disappointing that so much time and cost was spent fighting these claims, some of which the Court found had no value, simply because I chose not to drive for McLaren after I learned they wouldn’t be able to give me an F1 drive.
“I’m disappointed that any damages have been awarded to McLaren.
“They have not suffered any loss, because of what they have gained from the driver who replaced me.
“I am considering my options with my advisors and have no further comments to make at this stage.
“I look forward to the upcoming season with Chip Ganassi Racing.”
Chip Ganassi, the team owner of Chip Ganassi Racing, added: “Alex has our full support, now and always.
“We know the character of our driver and the strength of our team and nothing changes that.
“While we respect the legal process, our focus is exactly where it should be: on racing, on winning, and on doing what this organization has always done best, compete at the highest level.
“We’re locked in on chasing another NTT INDYCAR SERIES championship and defending our 2025 Indianapolis 500 victory.
“That’s where our energy is, and that’s where Alex’s focus is, on the track, doing what he does best: winning.”
The comments by Palou and Ganassi come after Zak Brown, the McLaren chief executive, welcomed the verdict on Friday.
In a statement issued to PlanetF1.com by McLaren, Brown said: “This is an entirely appropriate result for McLaren Racing.
“As the ruling shows, we clearly demonstrated that we fulfilled every single contractual obligation towards Alex and fully honoured what had been agreed.
“We thank the court for recognising the very significant commercial impact and disruption our business suffered as a result of Alex’s breach of contract with the team.”
McLaren also confirmed that it “will be seeking interest and reimbursement of its legal expenses at a further hearing.”
Among the more eye-opening claims to emerge during the case was Palou’s suggestion that Brown had little influence on the decision to sign Oscar Piastri for the 2023 season.
Palou claimed that the call to sign Piastri was driven by then-team principal Andreas Seidl with Brown telling him that “it was not his decision” to move for the Australian.
He said the signing of Piastri left him “very upset, worried and angry that McLaren had signed another rookie driver other than me” and that he asked his management company to seek assurances from Brown.
Palou said that Brown had insisted McLaren’s move for Piastri would not “interfere” with his own hopes of an F1 seat.
Palou added that Brown had reassured him that Piastri’s performance would be measured against his own when it came to deciding McLaren’s driver lineup for 2024.
In response, Brown insisted that he “never told” Palou that he would be considered for a 2023 Formula 1 seat, stressing that the IndyCar driver was only given “some optionality to join F1.”
Brown later told Reuters of Palou’s claims: “I’m not sure which allegation amused me more – the notion that I would not be the one making a key decision about our driver lineup, or the suggestion that I wasn’t on board with signing the hugely talented Oscar Piastri.
“Both allegations are clearly ludicrous – and anyone who follows our sport will see straight through them.”
Palou made one F1 practice appearance during his stint with McLaren, driving Daniel Ricciardo’s car in FP1 at the 2022 United States Grand Prix in Austin, Texas.
The Spaniard, 28, has established himself as the dominant force in IndyCar over recent years, winning four championships since 2021.
Palou secured a third consecutive IndyCar title last year, winning eight of the 17 races including the Indianapolis 500 for the first time in his career.
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