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Palou vs Mclaren: The lawsuit that made two teams collide

Updated: Dec 30, 2023

In August of this year, Mclaren filed a lawsuit against Spanish IndyCar champion Alex Palou, but why and what does this mean for the future? 

Before looking at the current situation between Palou and McLaren, let's take a look back at when their relations started.


A Chip Ganassi driver in IndyCar from 2021 onwards, Palou was crowned champion on two separate occasions, in 2021 and 2023, Palau was officially announced as part of the Papaya family in July of 2022, also testing with the McLaren F1 Team as part of its 2021 F1 car testing programme, alongside Pato O’ward, who in April of 2023 would be signed to McLaren’s all-new Driver Development Programme. Palau stated “I’m extremely excited to join the driver roster for such an iconic team as McLaren”, in addition to thanking his team Chip Gannassi prior to a set move to the Arrow McLaren IndyCar team. Later Palou would test the MCL35M with Oscar Piastri at the Hungaroring, where the pair tested the 2021 McLaren chassis in a three-day test at the host circuit of the Formula 1 Hungary Grand Prix, later taking part in FP1 of the 2022 United States Grand Prix at COTA


However, all did not turn out as planned, as Chip Gannassi would sue Palou over a contract dispute in July 2023. This was after Zak Brown signed Palou to the McLaren driver roster under the belief that he was a free agent, and minutes after Palou made a series of tweets saying he had no intention of returning to the Gannassi, the team he had previously said he was not interested in leaving, McLaren announced they had signed Palou. 


McLaren and its IndyCar team Arrow McLaren would then file a lawsuit against Palou and Chip Gannassi. It was reported in August that McLaren were seeking between $20 and $30 million in damages from the 2023 IndyCar champion as a result of his ‘2024 snub’, as he decided not to go through with his agreement to drive under the McLaren name in 2024, “does not intend to honor his contractual obligations”, in a statement given by McLaren Racing CEO Zak Brown

In the end, Palou left McLaren and O’ward was named reserve driver for McLaren for 2024, as Arrow McLaren’s driver from 2020 onwards until at least 2025. Palou also stated that F1 isn’t his ‘sole goal’ instead focusing his efforts on IndyCar and winning more championships in the American open-wheeled racing series, so we will most likely see the Spanish driver back on the grid in the 2024 IndyCar season.

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