LONDON — McLaren Racing is seeking nearly $20 million from four-time IndyCar champion Alex Palou in a London lawsuit over his decision to abandon a contract to join the team’s IndyCar program. The civil trial, which began this week, is expected to conclude in November and will see both Palou and McLaren Chief Executive Zak Brown testify.
The Claim: $19.7 Million in Lost Revenue
McLaren, which operates the dominant Formula One team and the Arrow McLaren IndyCar squad, is suing Palou after his agreed-upon move in late fell apart. McLaren’s lawyers argue that Palou’s failure to join the team cost them dearly, claiming $19.7 million in losses. This sum is intended to cover lost revenue from potential sponsorship deals and the salaries paid to drivers hired in Palou’s stead. The team asserts they missed out on “the on-track success it would otherwise have achieved” had Palou, who went on to win three consecutive IndyCar titles and the Indianapolis, honored the deal.
The Defense: Losses Are ‘Vastly Inflated’
The Spanish driver’s legal team is fighting the claim, arguing that Palou owes McLaren nothing. While Palou has admitted to breaching the contract, his lawyers maintain that McLaren’s alleged losses are “vastly inflated” and that the team successfully mitigated any financial damage. Palou’s legal team has reportedly accused McLaren of attempting to “take Mr Palou to the cleaners.”
The lawsuit is a significant battle over a high-profile driver contract. Interestingly, McLaren’s representatives stated that Palou’s current team, Chip Ganassi Racing, has agreed to cover any sums the court might rule Palou owes.
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