Alex Palou has announced that he feels “regret” over the bitter courtroom battle that saw him accuse McLaren of “lies and false impressions” after signing for its IndyCar team.
Palou had been due to drive for McLaren in 2024 but reneged on his contract to remain with Chip Ganassi Racing. McLaren then took legal action and, earlier this year, was awarded $12.2m (£9m) in damages at London’s High Court.
In a statement announcing that the case has now been fully settled, the four-time IndyCar champion said that he was given “the wrong advice” and declared: “I was never misled by McLaren and I very much respect their organisation”.
Today, McLaren, Palou, and his current team Chip Ganassi Racing each declared that they had reached a final settlement, bringing to a close one of IndyCar’s most acrimonious contractual disputes in recent memory.
The start of the saga in 2022 and 2023 played out over two continents as both teams claimed Palou’s services on the same day. It ultimately ended in fiery courtroom exchanges last year where both last year’s Indy 500 winner and McLaren Racing CEO Zak Brown took the stand.
Palou admitted breaching his McLaren contract to remain with Chip Ganassi Racing but challenged McLaren’s claim for subsequent damages, which included the loss of sponsorship revenue, reduced prize money, and the cost of recruiting and retaining the team’s other drivers.
“I had the wrong people around me back then, who I believe did not have my best interests at heart”
January’s decision and award of damages had left the issue of legal costs unresolved. Palou had previously told the court that Chip Ganassi Racing had agreed to cover the costs of the case, including damages, but that he would effectively be repaying the team by taking a reduced salary in the years to come.
As Palou declared that he was “delighted” that the matter was now settled in a statement posted on social media, he also contradicted some of the claims made in court and praised McLaren for its conduct.
“Over the past few months, I’ve had time to reflect on what has been an incredibly challenging period and I want to address it directly,” Palou said. “I want to acknowledge both Zak Brown and Chip Ganassi – both were put in a difficult position, and I regret being in the middle of that.
“I found myself pulled in various directions and had the wrong people around me back then, who I believe did not have my best interests at heart.
Brown is happy to leave the matter behind
McLaren
“I believe I was provided with the wrong advice or no advice at all. In hindsight, had I reached out to Zak directly, perhaps things may have played out differently.
“McLaren and Zak supported me in many ways – they fulfilled every obligation, went above and beyond, and delivered on everything they said in their contracts. I was never misled by McLaren and I very much respect their organisation.”
Brown welcomed the resolution, saying: “I’m very pleased that we have reached a final settlement with Chip Ganassi Racing after a UK judge ruled in our favour in January.
“I want to thank the team working directly on the case for so many months, and everyone who supported us throughout the process. Pleased we can now return to battling things out on track and focus on what’s set to be an exciting IndyCar season.”
Chip Ganassi did not shy away from the uncomfortable nature of the episode.
“I cannot condone what happened and I’m glad that the matter is over,” Ganassi said in a statement. “With the benefit of hindsight, I hope Alex has learned it’s important to keep good people around him, which he now does, so the events of 2023 are never repeated.
Four-time IndyCar champion Alex Palou would “likely” have won the Indy 500 with McLaren, and cost the team millions when he backed out of deal, rules High Court
By
Dominic Tobin
“I want to thank Zak and McLaren Racing for now giving us a chance to leave this matter behind us and fully focus on the exciting IndyCar season ahead.”
The dispute traces its origins to 2022, when McLaren signed Palou, then the reigning IndyCar champion, to a contract to race for its team in the series.
In the summer of 2023, in circumstances that remain only partially public, Palou attempted to extricate himself from his McLaren commitment.
McLaren and Chip Ganassi Racing issued competing announcements about the Spaniard’s future on the same day – McLaren confirming him as its driver, Ganassi simultaneously announcing he would stay with the team.
The conflicting statements thrust Palou into the centre of an ugly legal battle between two of IndyCar’s most powerful organisations.
Palou ultimately remained with Ganassi throughout the dispute, winning three IndyCar championships in a row in 2023, 2024 and 2025 and cementing his reputation as the series’ dominant force.
