Three-time IndyCar champion Alex Palou is set to travel to London after the Rolex 24 at Daytona for a mediation session with McLaren, which is suing him for a minimum of $30 million over a breach of contract issue.
In 2022, Palou signed a contract to drive for McLaren’s IndyCar team; however, this created a conflict with Chip Ganassi Racing, which had an option on him for the 2023 season. The disagreement was resolved through mediation, leading to an amended contract that would allow Palou to join McLaren in 2024. Chip Ganassi Racing allowed him to serve as a Formula 1 reserve driver during that time.
The mediation is slated for Tuesday, while Palou is currently competing as part of Meyer Shank Racing’s lineup at Daytona International Speedway. He had previously tested McLaren’s F1 car and participated in a practice session at the Circuit of the Americas in 2022. At the Miami Grand Prix in May 2023, Palou was seen wearing McLaren’s signature papaya uniforms. However, by August, he reconsidered his decision to leave Ganassi
Palou’s attorney informed McLaren that he would not be joining the IndyCar team as originally agreed. Consequently, the team filed a lawsuit against him. McLaren is seeking damages that include the return of an advance payment made to Palou on his salary, expenses incurred during F1 development, and compensation for financial losses from sponsors and partners who anticipated his participation.
Palou’s reversal was influenced partly by his perception that there were no opportunities for an open F1 seat at McLaren because current drivers Lando Norris and Oscar Piastri have long-term contracts. Conclusively, Palou determined that remaining with Ganassi, which is perceived as a more competitive IndyCar team, was a wiser choice.
This situation has caused significant disruption for McLaren’s IndyCar team, which found itself without a driver late in the planning process for the 2024 season. The team eventually signed David Malukas, but he suffered a wrist injury in a cycling accident and was dismissed after failing to compete in four races due to contract stipulations.
Throughout 2024, McLaren was forced to rotate through three different drivers, eventually naming Théo Pourchaire as their full-time choice. However, Pourchaire was subsequently replaced by 20-year-old Nolan Siegel, who had been associated with a winning entry at the 24 Hours of Le Mans, an event co-owned by Zak Brown, McLaren Racing’s CEO.
Palou, who clinched his first IndyCar title in 2021, added back-to-back championships in 2023 and 2024. He and his Ganassi teammate Scott Dixon are currently racing for Meyer Shank Racing in the Rolex 24, a grueling endurance event that begins this Saturday at Daytona International Speedway, running continuously for 24 hours.
Following the race, Palou will head to London for the mediation session, where his legal team will work to minimize the financial repercussions he faces from McLaren.
