London's High Court has ruled that four-time IndyCar champion, Alex Palou must pay McLaren $12m (£8.8m) in compensation for breach of contract.

McLaren initially sought $30m (£22m) from the Spaniard, but this was subsequently reduced to $20m (£14.6m).

In mid-2022, Chip Ganassi Racing, with whom Palou had won the 2021 IndyCar title, issued a press release claiming that the Spaniard had re-signed for 2023, the team claiming it had exercised an option in his contract. The release including a quote attributed to the driver.

Hours later however, Palou took to social media claiming that the quote had been made up by the team and that he had actually given the team notice of his intention leave at season end and join McLaren.

McLaren issued its own release confirming that Palou was now on board, however it didn't mention whether the Spaniard was to be part of the F1 team or its burgeoning IndyCar programme, consequently the sport found itself in the law courts and eventually Ganassi won, retaining the Spaniard for 2023, while he would join McLaren in 2024.

Palou subsequently denied the McLaren deal, while Zak Brown claimed the Spaniard had said he had "no intention of honouring his contract", consequently McLaren Racing and Arrow McLaren began legal proceedings in London, citing the cost of Palou's test programme, the loss of potential sponsorship deals and even a $400,000 advance on his 2024 salary.

While Palou admitted to a breach of contract, he insisted that he owed McLaren nothing, claiming that he was misled into believing that he would be joining the F1 team and not remaining in IndyCar.

In the midst of this Alpine protege Oscar Piastri became available, creating another legal wrangle for the Woking outfit, but one which paid off.

In the High Court, Palou was ordered only to pay damages for losses to McLaren's IndyCar team not the F1 team. For the most part the damages related to loss of sponsors or the impact on previously agreed deals, The Spaniard being ordered to pay $5.3m (£3.8m) to cover a reduction in a deal with NTT Data, $2.5m (£1.88m) in "other IndyCar sponsorship revenue", and $2m (£1.46m) in performance-based revenue.

"The court has dismissed in their entirety McLaren's Formula 1 claims against me which once stood at almost $15 million," said Palou following the hearing. "The court's decision shows the claims against me were completely overblown.

"It's disappointing that so much time and cost was spent fighting these claims, some of which the Court found had no value, simply because I chose not to drive for McLaren after I learned they wouldn't be able to give me an F1 drive," he added.

"I'm disappointed that any damages have been awarded to McLaren," he continued. "They have not suffered any loss because of what they have gained from the driver who replaced me. I am considering my options with my advisors and have no further comments to make at this stage."

"Alex has our full support, now and always," said Chip Ganassi. "We know the character of our driver and the strength of our team, and nothing changes that.

"While we respect the legal process, our focus is exactly where it should be, on racing, on winning, and on doing what this organization has always done best, competing at the highest level.

"We're locked in on chasing another championship and defending our 2025 Indianapolis 500 victory. That's where our energy is, and that's where Alex's focus is, on the track, doing what he does best: winning."

During the trial Palou has insisted his contracts with McLaren were "based on lies", and that an F1 drive was never really in the offing, while his counsel accused Zak Brown of destroying evidence by deleting WhatsApp messages related to the case.