Report: Alex Palou admits breach of contract with McLaren

Court documents reveal two-time IndyCar champion Alex Palou admitted breaching a contract to join McLaren Racing in 2024 when he decided to stay at Chip Ganassi Racing.

The revelation came in the Spanish driver's 20-page response to a lawsuit filed against him in September by McLaren, which is seeking at least $23 million in losses they claim Palou's U-turn cost them.

In Palou's response filed in the High Court of Justice Business and Property Courts of England and Wales Commercial Court, he admits he "lost trust and confidence that (McLaren) genuinely intended to support his ambition to race in the Formula One Series and decided to continue racing with CGR in the Indy Car Series instead."

The documents obtained by The Associated Press state Palou "therefore admits that he renounced his contractual obligations."

Given this admission, Palou alleges in the documents that the remaining issue between the two parties is the amount of the financial damages owed to McLaren.

McLaren is reportedly seeking to cover sponsorship losses, the cost of developing Paulo as a test and reserve driver, and $400,000 of advance salary allegedly paid to Paulo for the 2024 IndyCar season.

Earlier this year, Palou and Ganassi were embroiled in a dispute in federal court over his contract after McLaren announced it had signed Palou for 2024, with that case eventually heard in mediation.

Palou, 26, drove the No. 10 Honda for Ganassi in 2023, winning an unprecedented five races on his way to his second IndyCar title and ninth career victory.

—Field Level Media