Published by Global Banking & Finance Review®
Posted on January 23, 2026
3 min readLast updated: January 23, 2026
Add as preferred source on GoogleMcLaren Racing won a partial lawsuit against Alex Palou, with the UK court ruling they are owed $12 million over an aborted team move.
LONDON, Jan 23 (Reuters) - McLaren Racing on Friday won part of its lawsuit against four-times IndyCar champion Alex Palou over his aborted move to the team, with London's High Court ruling the reigning Formula One world champions were owed around $12 million.
McLaren Racing, which runs the reigning Formula One world champions and the Arrow McLaren team in U.S.-based IndyCar sued Palou after his move fell apart three years ago.
McLaren have emerged as a dominant force in Formula One, with Lando Norris winning the drivers' title last year as the team won the constructors' title.
Their IndyCar team, however, are relatively new and Palou agreeing a deal in late 2022 to join would have been a coup, according to McLaren's lawyers.
But Palou, who had signed a deal with McLaren, ultimately stayed with Chip Ganassi Racing and won three consecutive IndyCar titles from 2023 to 2025, plus May's Indianapolis 500.
PALOU SAID DREAM TO RACE IN F1
McLaren's lawyers argued at a trial last year that the team missed out on "the on-track success it would otherwise have achieved" with Palou as their driver and claimed $19.7 million.
Palou's lawyers said the Spanish driver owed McLaren nothing and he gave evidence in October that he felt McLaren misled him about his prospects of racing in Formula One.
Judge Simon Picken ruled in McLaren's favour in relation to its claim it had to pay additional sums to its Mexican driver Pato O'Ward, amounting to just over $1.3 million, because he had "greater leverage" when negotiating his salary.
McLaren also won parts of its case in relation to performance-based prize money and sponsor payments it said it would have earned if Palou drove for McLaren.
In total, McLaren was awarded at least $10.2 million, plus another $2 million to $2.5 million depending on expert evidence.
McLaren Racing CEO Zak Brown said in a statement: "We thank the court for recognising the very significant commercial impact and disruption our business suffered as a result of Alex's breach of contract with the team."
Palou said in a statement that the ruling "shows the claims against me were completely overblown", adding: "I'm disappointed that any damages have been awarded to McLaren. They have not suffered any loss because of what they have gained from the driver who replaced me."
Chip Ganassi said: "Alex has our full support, now and always."
(Reporting by Sam TobinEditing by Tomasz Janowski)
Performance-based prize money is financial compensation awarded to individuals or teams based on their achievements or results in a competitive setting.
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