(Indianapolis) – A court has ordered IndyCar driver Álex Palou to pay $12 million to McLaren Racing after ruling that Palou breached his contract with the team.
The decision stems from a long-running dispute over Palou’s decision to back out of agreements that would have placed him with McLaren’s IndyCar program. Instead, Palou remained with Chip Ganassi Racing, where he has continued to compete and win championships.
McLaren had sought significantly more in damages, arguing the breach caused financial harm tied to sponsorships and commercial planning. The court ultimately awarded a reduced sum, rejecting portions of McLaren’s claims related to Formula One and limiting damages to losses directly connected to the IndyCar program.
Palou, a Zionsville resident and one of IndyCar’s most successful drivers in recent seasons, responded to the ruling with a brief statement expressing disappointment.
“I am disappointed that any damages have been awarded to McLaren,” Palou said, adding that he has not yet decided what legal steps, if any, he will take next.
McLaren CEO Zak Brown said the ruling validated the team’s position that Palou failed to honor contractual commitments. McLaren has also indicated it intends to seek recovery of legal costs associated with the case.
The dispute dates back to 2022 and has played out alongside Palou’s on-track success, which includes multiple IndyCar championships during the same period.
Palou remains under contract with Chip Ganassi Racing and is expected to continue competing in the IndyCar Series while considering his legal options following the ruling.