Alex Palou: 'McLaren contract was based on lies – I’ll be paying for years'

Indycar Racing News
October 10, 2025

Alex Palou has dominated IndyCar racing in recent seasons but claims that he's not even among the series' highest-earners as a result of McLaren's $20.7m case against him

1 Alex Palou McLaren 2023 US GP

Palou took on a McLaren reserve role in 2023, but reneged on a full-time IndyCar contract

McLaren

October 10, 2025

Alex Palou has said he signed a McLaren contract based on “lies and false impressions”, and that he will be paying the cost of his current legal battle for years.

The four-time IndyCar champion, who also won this year’s Indy 500 has been described in the High Court as “IndyCar’s Messi”, but claimed that he is not even among the best-paid drivers in the series as a result of the $20.7m (£15.43m) case brought by McLaren.

While the court has heard that his team, Chip Ganassi Racing (CGR), has agreed to cover the costs of the case and any damages, Palou said that he was effectively repaying the team by taking a reduced salary, and would have to continue to do so for seasons to come.

The Spaniard signed a contract to join McLaren for the 2023 season, a move that was then deferred to 2024. But he opted to remain with Chip Ganassi Racing and admits reneging on a deal with McLaren.

He claims that he did so because McLaren Racing CEO Zak Brown failed to deliver on promised opportunities with its Formula 1 team, including multiple free practice sessions in its car during grand prix weekends. He is contesting the level of damages claimed.

Alex Palou IndyCar 2

The best driver in IndyCar but Palou says he’s not among the highest earners

IndyCar

McLaren Racing CEO Zak Brown, who gave evidence earlier this week, and denied “stringing along” Palou in his bid to secure an F1 seat, watched the IndyCar driver give evidence, 24 hours after celebrating McLaren’s 2025 constructors’ world championship at the team’s Woking base.

Speaking in a courtroom packed with lawyers on both sides, Palou detailed the financial impact he says that the case has had, despite the indemnity his team has agreed.

“As we have seen the big numbers that have been claimed in this matter is something that I do not have as a person, as a driver,” he said. “There is no way I would have had the amount of money and expenses just to be here today.

“Zak Brown wanted to get an IndyCar driver into Formula 1 and be successful”

“Although there is that indemnity, as a driver, I know I am not being paid the amount of other drivers. I am not in the top three of the highest paid drivers and I am not going to be for the foreseeable future… for this indemnity.

“I am going to have to pay for it with my base salary in the future and I am already doing it.”

Palou began giving evidence by saying that he would have been prepared to give up a full-time IndyCar seat entirely to become a Formula 1 reserve driver and follow “his dream” to try and race in Formula 1.

Under cross-examination from McLaren’s lawyer Paul Goulding KC, he claimed that the team’s initial offer for the 2023 season included multiple opportunities to prove his worth as a Formula 1 driver, and that Brown wanted Palou to follow in the footsteps of Mario Andretti who won championships on both sides of the Atlantic.

Zak Brown x

Brown and McLaren are claiming $20.7m from Palou

McLaren

“He wanted to get an IndyCar driver into Formula 1 and be successful,” said Palou. “That is something that had been done a long time ago with Mario Andretti.

“He was a big fan of IndyCar and motor sports. It’s the only team in the IndyCar series that has the ability to take a driver from IndyCar and put them into Formula 1. That is what he told me the idea was.”

“It was all referenced in the F1 contract. If you see the salary, it is the salary for the first season. The season here was going to be doing F1 testing, F1 reserve. Then, in the following years, it says, ‘In case the F1 option was not done’.”

Palou said that the language showed that the “primary idea” was to move to F1. It was “what I understood. That would be the goal.”

Soon after signing the first contract with McLaren in mid-2022, Oscar Piastri announced that he would be leaving Alpine, and it became clear McLaren was to be his destination. Palou said that his feelings about his own move then changed – and that Brown had to reassure him his F1 opportunity was not in jeopardy.

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“I was very upset, worried and angry that McLaren had signed another rookie driver other than me,” he said in his witness statement.

“I asked MIM [his management team] to speak to Zak to ask what was going on.

“On September 22 they had a conversation with Zak, and Zak had told them they needed someone who would be quick in 2023 […] but that this would not interfere with my chances to get into F1.”

Giving evidence today, he further commented on his emotions when it became clear McLaren was going to hire Piastri: “That was when things first changed because they did not tell us the truth.”

Palou’s witness statement claimed that Brown had told him how the decision to hire Piastri was down to then-team boss Andreas Seidl, and not Brown, but Palou said that he now questions that.

“Why Oscar’s name never appeared in our conversations? Why sign another rookie? Someone experienced I could understand.

“If you say that is from Andreas, that is not going to interfere with my chances, I am believing it.

“[But] from what I have heard in the last days, apparently he [Mr Brown] makes all the choices. That was not what he told me.”

Brown stared determinedly at Palou as he gave his answer, then gave a short shake of the head.

Alex Palou in Nashville 2025 IndyCar race

Palou leads the way at Nashville 2025

IndyCar

Palou’s contractual situation meant that he remained with CGR in 2023. He agreed a new contract with McLaren to run from 2024-2026 after learning about Piastri’s hiring.

Asked why, Palou said that the pull of Formula 1 was too strong: “That is my dream, to get there. If that is what you are saying – I am going to get there — so I signed again.”

However, the IndyCar champion asserted that his impressions continued to change as 2023 wore on, despite taking on a reserve driver role with McLaren’s Formula 1 team, alongside his IndyCar duties.

He claimed that he did not get he “opportunities” he felt he’d been promised, including multiple F1 free practice appearances and more testing of F1 cars from previous seasons than he was given.

“I thought I had the right to terminate an agreement that was based on lies and false impressions,” he said.

McLaren contests Palou’s position that the F1 team’s promises of on-track running were not delivered on, Goulding saying in court that the Spaniard did not complete additional free practice and test session because he breached his contract.

The court was also told that Brown was paying Palou’s lawyers during mediation over contract disagreements between the driver, CGR and McLaren.

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Palou’s Ganassi contract included a “blackout” date which gave the team first refusal on his IndyCar services until around mid-July. Palou claims his lawyers and Brown knew about the date but didn’t tell him, and allowed the Spaniard to sign for McLaren’s US squad for ‘24-’26 at the same time.

Towards the end of 2023 Palou elected to renege on his contract with McLaren and pledge his future to Ganassi, who he had carried on driving for in IndyCar over the entire period.

“I found out my lawyers knew about the clause but Mr Brown was paying my lawyers,” said Palou. “Mr Brown knew I could not sign that contract.

“At that moment, I either fight with CGR, the team who have given me the opportunity to be IndyCar champion – they had all the team around me.

“Or I go and breach with a person who has been misleading me and where I have not been having these opportunities.”

The case continues.

McLaren vs Palou: the case so far