Alex Palou ordered to pay McLaren Racing $12M in breach of contract suit
January 23, 2026
Four-time IndyCar champion Alex Palou has been ordered to pay McLaren Racing over $12 million for breach of contract. The decision came Friday from London’s High Court after a five-week trial. McLaren initially sought nearly $30 million in damages, later reducing it to $20.7 million. The damages are tied to losses the IndyCar team suffered when Palou chose to stay with Chip Ganassi Racing instead of moving to McLaren’s IndyCar team in 2024. Palou expressed disappointment, stating the claims were overblown. He is considering his options with advisors. Palou has won three consecutive IndyCar titles since the saga began.