McLaren are suing IndyCar champion and F1 hopeful Alex Palou for over $32 million after he backed out of their contract to join the Woking based team. 

Alex Palou has found himself embroiled in yet another contract dispute, with McLaren taking legal action after he backed out of being an IndyCar and reserve F1 driver for the team earlier in the year. The lawsuit comes after Palou also found himself caught in a contract dispute with Chip Ganassi Racing.

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The 26-year-old planned on leaving CGN a year early to join McLaren. A mediation agreement was then put in place to allow him to be able to race for CGN but test for McLaren this year.

GP Fans have reported that “According to the September 29 filing in the High Court of Justice Business and Property Courts of England and Wales Commercial Court, Palou had ‘no outstanding obligation under any contract or agreement’ that would stop him from joining McLaren at the end of the IndyCar season.”

Palau cruised to victory this season in IndyCar, securing the title by 78 points. With his second title in three seasons under his belt, he ultimately decided this summer that he wouldn’t be joining the McLaren side. McLaren are now seeking compensation for the disappointment of the contract dispute.

The compensation McLaren are seeking is reportedly linked to sponsorship they had expected to generate with his involvement with the team. It would also include costs involved in developing him for an F1 seat and an advance in his 2024 salary.

Palau told NBC last month that he’s sad about the situation;

“I agree it’s sad… I’ve always tried to be a nice person, and I always thought I was doing the right things. That’s how my family taught me how to do stuff, and then suddenly, I look like I do everything wrong. That I don’t listen. And that I just do whatever I feel on that day.”

McLaren CEO Zak Brown also spoke out last month in a letter to Arrow McLaren Racing team;

“Palou has no intention of honouring [sic] his contract with Arrow McLaren for the 2024 season and beyond. 

“This is incredibly disappointing, considering the commitment he made with us directly and publicly, and the significant investment we have put into him based on that commitment. 

“We have dedicated a lot of time, money, and resources in preparing to welcome Alex into our team because we believed in him, and we were looking forward to achieving IndyCar victories with him.”

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Cover Image credit to Justin Casterline // GettyImages