McLaren awarded millions after suing driver for breach of contract | F1 | Sport
McLaren has been awarded over £8million following a trial involving their former driver, Alex Palou. The Spaniard had gone back on a multi-year contract with the Formula One team, claiming that the Woking-based outfit failed to provide him with a clear path to Formula 1, and instead chose to re-sign with Chip Ganassi Racing.
Initially, McLaren, the winners of the 2025 Formula 1 constructors’ championship, sought $30m in 2023 before mediation in 2024, but the judge awarded them less than a third of that amount. Legal experts suggest that this trial could establish a precedent for future contractual disputes within Formula 1.
A statement read: “Today a UK judge ruled that McLaren Racing has been awarded damages of well over $12 million to compensate the business for the commercial loss and disruption suffered following IndyCar driver Alex Palou’s breach of contract with the team.
“In addition to the damages award, McLaren Racing will be seeking interest and reimbursement of its legal expenses at a further hearing. As the judgment records, Alex Palou had the backing of Chip Ganassi Racing in attempting to deny McLaren Racing’s claims.”
Zak Brown, McLaren chief executive, added: “This is an entirely appropriate result for McLaren Racing. As the ruling shows, we clearly demonstrated that we fulfilled every single contractual obligation towards Alex and fully honoured what had been agreed.
“Today a UK judge ruled that McLaren Racing has been awarded damages of well over $12 million to compensate the business for the commercial loss and disruption suffered following IndyCar driver Alex Palou’s breach of contract with the team.
“We thank the court for recognising the very significant commercial impact and disruption our business suffered as a result of Alex’s breach of contract with the team.”
The judge awarded McLaren $5.4m for the 2024-2026 seasons and a further $950,000 for 2027.
Additional amounts were granted to the racing team covering performance revenue, salary and outstanding payments. A separate sum concerning sponsorship arrangements will be decided at a later date.
