McLaren has reached a settlement with Chip Ganassi Racing, Alex Palou’s IndyCar team. The papayas took the Spaniard to court last year for breach of contract. The London court ruled in January that Palou owed the team more than twelve million dollars. In new statements, Chip Ganassi, Zak Brown, and Palou announced that the case has now been settled. Furthermore, Palou expresses his regret and looks back on a ‘difficult period.’
Read more Brundle predicts new title fight: ‘Hamilton is going to have a strong season’
Palou won four of the last five IndyCar championships in the service of Chip Ganassi, although he seemed to be on his way to McLaren in 2023. He hoped to eventually secure an F1 seat with the British team through that route. However, with the signing of Oscar Piastri, that prospect vanished. Palou ultimately stayed with Chip Ganassi, after which McLaren went to court: the British team wanted to recover costs already incurred and lost sponsor income from him. The court partially ruled in McLaren’s favor in January, awarding the team part of the claimed damages. “Perfectly justified,” Zak Brown reacted at the time.
Palou: ‘Received wrong advice’
Palou was indemnified by Chip Ganassi Racing, meaning the American team would cover the costs. Including legal fees, the amount for McLaren would have risen to over twenty million euros. Both teams announced on Friday that a settlement has been reached. The four-time IndyCar champion, in turn, posted an apologetic message on social media. “I look back on a difficult period,” he wrote. “McLaren and Zak Brown have supported me in many ways. They have fulfilled all their obligations, gone beyond expectations, and honored their contracts on all fronts. I was never misled by McLaren and have great respect for their organization.”
Read more Brundle predicts new title fight: ‘Hamilton is going to have a strong season’
“Although little is known about it, I was pulled in different directions at the time and had the wrong people around me; people who did not have my best interests at heart,” Palou revealed. “I received wrong advice or sometimes no advice at all. In hindsight, I should have contacted Zak directly; then things might have turned out differently.”
“I am very happy that we have reached a final settlement with Chip Ganassi Racing,” Zak Brown stated in a McLaren press release. “The British judge already ruled in our favor in January. I want to thank the team that worked intensively on this case for months, as well as everyone who supported us throughout the process. It is good to close this chapter and focus fully again on what promises to be an exciting IndyCar season.”
Read more Flavio Briatore opposes new F1 regulations: ‘Completely different sport’
View the 2026 F1 calendar here
