Alex Palou, a three-time IndyCar champion, will head to London for mediation with McLaren after the Rolex 24 at Daytona. McLaren is suing him for at least $30 million over a contract dispute.
In 2022, Palou signed a contract with McLaren’s IndyCar team, which caused a conflict with Chip Ganassi Racing, as they had an option on Palou for the 2023 season. The issue was resolved through mediation, and Palou’s contract was changed so he could join McLaren in 2024, while Ganassi allowed him to be a Formula 1 reserve driver for that year.
The mediation is set for Tuesday, and Palou is racing with Meyer Shank Racing at Daytona International Speedway.
Palou tested McLaren’s F1 car in 2022 and was part of the McLaren team at the Miami Grand Prix in 2023, but by August, he decided against leaving Ganassi.
His attorney informed McLaren that Palou wouldn’t be joining their IndyCar team, leading McLaren to sue him. McLaren is seeking damages, including the return of a salary advance, money spent on F1 development, and losses from sponsors who expected Palou to race for them.
Palou’s change of heart was influenced by the lack of an open seat in F1 at McLaren, as current drivers Lando Norris and Oscar Piastri are under long-term contracts. Believing that staying at Ganassi was a better option, Palou chose to stay with the team, which he considers stronger than McLaren’s IndyCar squad.
McLaren faced difficulties after Palou’s decision, as they were left without a driver for 2024 late in the planning process. They eventually signed David Malukas, but Malukas was fired after breaking his wrist in a cycling accident and missing his fourth race. McLaren used three different drivers before hiring Nolan Siegel, who won the 24 Hours of Le Mans in a McLaren-owned team.
Palou, who won IndyCar titles in 2021, 2023, and 2024, is currently racing with Scott Dixon for Meyer Shank Racing in the Rolex 24. After the race, Palou will travel to London for mediation in an attempt to reduce the financial damages McLaren is seeking.
