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McLaren lawsuit update as case against IndyCar champion continues

McLaren lawsuit update as case against IndyCar champion continues

Henry Valantine

26 Jan 2025 6:30 PM

McLaren IndyCar racing driver Alex Palou.

IndyCar Champion Alex Palou had signed a deal to join McLaren, which later resulted in legal action.

Three-time IndyCar champion Alex Palou is reportedly due to fly to London at the conclusion of the 24 Hours of Daytona, for mediation in his ongoing legal proceedings with McLaren.

Palou had been signed to McLaren in 2022 to join their IndyCar team the following season, along with being a reserve driver for Formula 1, but the team is suing him for $30 million (£24m) over an alleged breach of contract dispute.

Alex Palou reportedly due for McLaren mediation over an ongoing legal dispute

A report from the AP has claimed that Palou, who had been driving at the 24 Hours of Daytona this weekend, is due to fly to the UK for mediation with McLaren on Tuesday.

The IndyCar champion signed for McLaren with a view to joining their IndyCar team in 2023, but this was deferred to 2024 after this put him in breach of his deal with Chip Ganassi Racing, which already held a contractual option on him for the 2023 season.

By the summer of 2023, however, Palou had opted to stay with Ganassi instead, to which his then-management team responded by saying they were “bitterly disappointed”, to which McLaren responded by filing a claim against him.

More on the legal battle between Alex Palou and McLaren

👉 Revealed: The sum McLaren want from Alex Palou for reneging on 2024 contract

👉 McLaren accused of ‘playing the victim’ in scathing statement as Alex Palou saga continues

The AP reports this legal filing is over lost revenue from sponsors, an advance on his salary, and money spent on his Formula 1 development, having taken part in TPC [Testing of Previous Car] running with McLaren, as well as a free practice session with the team at the 2022 United States Grand Prix.

After allegedly reneging on this valid McLaren contract, this mediation process will likely be to establish how much Palou and his team will have to pay the team, with the reigning IndyCar champion looking to lessen the financial impact of this case.

Should the sides not agree on terms, however, a previous report from RACER stated the case may go to trial in late 2025, with mediation being an opportunity for the sides to reach a settlement, rather than being a form of arbitration.

Speaking about the situation between himself and McLaren when news first broke of the legal proceedings back in the summer of 2023, Palou told reporters: “I would say it’s just sad. I would have liked to have done things differently. But it’s not been that way. And I’m just sad the way it’s worked out.

“But yeah, I cannot really change it and just change everything and colour it and make it a little more nice. It’s not that way.”

Read next: Global F1 Reddit community moves to ban popular social media site

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