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McLaren reportedly seeking $23m from Alex Palou

NEWS STORY
04/10/2023

British media reports that McLaren is seeking at least $23m from IndyCar champion Alex Palou after the Spaniard reneged on his contract for 2024.

According to the filing in the High Court of Justice Business and Property Courts of England and Wales Commercial Court, Palou had agreed that he had "no outstanding obligation under any contract or agreement" that would prevent him from joining McLaren once the 2023 IndyCar season ended.

However, almost a year after controversially rejecting Chip Ganassi Racing for McLaren, the Spaniard performed a complete 180 and opted to reject the Woking-based outfit for the American team.

Had the original deal come to fruition, Palou would have raced for McLaren's IndyCar project alongside a test and reserve role with the F1 team ahead of a future switch to the world championship.

To that end, Palou took part in a year-long programme with McLaren including private test sessions and his FP1 debut at the US Grand Prix last October.

"It's very disappointing," said Zak Brown in August, shortly after Palou announced his decision to remain with Ganassi, "we had a very good relationship. "He hasn't personally communicated with me about it, which is rather disappointing, given all that we've done for him and the opportunities that we have provided.

"I don't think his decision has anything to do with McLaren per se," he continued, "our relationship was very strong. It's just disappointing how it's been handled on a personal level.

"All our relationships with our drivers are something McLaren take very seriously, I think we do a good job of creating a family environment for our drivers. So to be let down, especially in that manner, is pretty disappointing.

"Alex informed us that he has no intention of honouring his contract with us in IndyCar or in Formula 1," said the American. "We have a contract, so it's now in the legal process we filed in London courts last week against him both as a person and his business entity, and we'll just let the legal proceedings carry the situation forward."

Since informing McLaren at the beginning of August, Palou has had no contact with them or Brown, whilst also severing ties with the management company that brokered the original deal.

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READERS COMMENTS

 

1. Posted by Spindoctor, 05/10/2023 7:21

"Not sure this is a good idea, unless you're a lawyer."

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2. Posted by Superbird70, 04/10/2023 13:16

"For $23M I hope he gets his name on the car someplace. "

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3. Posted by Wokingchap, 04/10/2023 12:43

"@GordonG47...as much as i love McL, a very good point."

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4. Posted by GordonG47, 04/10/2023 12:22

""All our relationships with our drivers are something McLaren take very seriously, I think we do a good job of creating a family environment for our drivers."

Tell that to Daniel..."

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5. Posted by KKK, 04/10/2023 11:40

"To be honest, McLaren is overdoing it a bit, considering they now have a very strong driver lineup. Palou has shot himself in the foot as he will never get an F1 chance again, and if he had stayed, he would have been up there at the front. $25 is a small sum to Palou, so why bother....sour grapes ???"

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6. Posted by kenji, 04/10/2023 11:23

"From what little I know I would venture to say that , prima facie, McLaren appear to have a very strong case. If one can presume that the pre payment of $400k was an advance against an agreed full time salary was duly paid and not immediately returned or isolated in escrow that alone would be enough to substantiate that a contract/agreement was in place. McLaren is not an insignifant corporate entity and their lawyers would be some of the very best. There really must be more to this than has been publically stated!!! The only thing that I can come up with is that there exists somewhere in the contract a promise of an F1 drive.....or at least a verified pathway to that result which has not been met. There were rumours stating that Ganassi had a clause that prohibited Palou from signing an contract prior to a specific date, which Palou duly did. If the case swings on this fact then McLaren have a case. roll on...."

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