McLaren sues IndyCar champion Palou for $20 million in London court dispute

The legal dispute between McLaren Racing and four-time IndyCar champion Alex Palou has commenced in London's Commercial Court, centering on Palou's breach of contract after he backed out of a signed deal to join McLaren's IndyCar team. McLaren claims approximately $20 million in losses, including lost sponsorship revenue and increased salaries for other drivers like Pato O'Ward, arguing Palou's decision caused significant financial harm and diminished the team's competitive prospects. Palou, who admitted breaching the contract, contends that McLaren's damage claims are inflated and that the team mitigated any losses. The conflict traces back to 2022 when Palou initially agreed to join McLaren but ultimately stayed with Chip Ganassi Racing, where he continued winning IndyCar championships. Palou's legal team also claims he lost trust in McLaren's support for his Formula 1 ambitions, influencing his decision. The case highlights challenges with cross-series driver commitments and is expected to conclude later this year after evidence from key figures including Palou and McLaren CEO Zak Brown.