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IndyCar champion admits breaching McLaren contract in £18.2m lawsuit over potential F1 seat
IndyCar champion admits breaching McLaren contract in £18.2m lawsuit over potential F1 seat
Two-time IndyCar champion Alex Palou concedes in court documents that he breached his contract with McLaren Racing when the Spaniard did an about-face and stayed at Chip Ganassi Racing, having been the reserve driver for McLaren at F1’s Miami Grand Prix. The admission came in Palou's response to a lawsuit filed against him by McLaren in September seeking to recoup at least $23 million (£18.2m) in losses the team calculated Palou's reversal cost the organisation. Palou's 20-page response was filed in the High Court of Justice Business and Property Courts of England and Wales Commercial Court. The Associated Press reviewed the filing Monday. In the response, Palou says he changed his mind about joining McLaren ahead of the 2024 season when he "lost trust and confidence that (McLaren) genuinely intended to support his ambition to race in the Formula One Series and decided to continue racing with CGR in the Indy Car Series instead." Palou "therefore admits that he renounced his contractual obligations" with McLaren and "the real issue between the parties is as to the quantum of any damages which the Defendants are liable to pay," the documents say. The spat over the 26-year-old between two IndyCar teams began when Palou initially disputed a Ganassi claim that the team had picked up the 2023 option year on his contract. McLaren in July 2022 said it had signed Palou and had him earmarked for an IndyCar seat and a reserve driver role with its Formula One team. Chip Ganassi Racing said it had the contractual rights for Palou for the 2023 season. Palou and Ganassi entered mediation and a resolution was reached a year ago in which Palou would drive for Ganassi in 2023 but was also McLaren's reserve F1 driver when it did not interfere with IndyCar. He was able to participate in a practice session, tested for the F1 team both on track and in a simulator, and was the reserve driver for McLaren at F1's Miami Grand Prix in May. McLaren Racing CEO Zak Brown was contacted Aug. 8 and told by attorneys for Palou that Palou would not be joining McLaren and had instead signed a three-year extension with Ganassi. Palou won the 2021 and 2023 championships with Ganassi and is now signed there through 2026. IndyCar driver Pato O'Ward last week was named Palou's replacement as McLaren's F1 reserve driver and participated in a practice session during the season-ending race weekend in Abu Dhabi. O'Ward is a full-time IndyCar driver for Arrow McLaren Racing. The bulk of Palou's response focuses on McLaren's loss of revenue claims and attempts to mitigate what Palou will owe in damages. The nearly $23 million in damages McLaren is seeking is broken down in future sponsorship tied to Palou joining McLaren, the costs of using him as a reserve F1 driver, how much McLaren spent developing Palou for F1 and a $400,000 advance on his 2024 salary. McLaren is not seeking repayment of legal fees it says it covered for Palou in last year's fight with Ganassi. McLaren has contended Palou signed two contracts: the first with McLaren Racing as the F1 reserve driver and a separate deal with Arrow McLaren to compete in IndyCar for the team while also serving as the F1 backup. Among the damages McLaren is seeking is nearly $15.5 million in lost revenue under official partner agreements with sponsors NTT Data and General Motors that anticipated Palou would be the driver, including $7 million in revenue and prize money from IndyCar itself. "This claim is embarrassing for want of particularity and speculative in the extreme," the response said. "The performance of any team in a future Indy Car Series cannot be predicted with any degree of certainty. Driver performance is variable." The response also disputes McLaren's claim to lost revenues that Palou "would otherwise have earned in relation to the Formula One Series." It notes that claim would only be valid if Palou was actually McLaren's F1 driver, and that Lando Norris and Oscar Piastri are under contract through 2025 and 2026. The response also claims that if Palou was an F1 driver, all the claims to IndyCar financial losses would be moot. McLaren also wants to recoup all money spent on Palou when he was the test driver, both on track and in the simulator, and money it spent seeking a replacement for Palou. O'Ward became Palou's replacement in the F1 role, while David Malukas was hired to fill the open seat in the IndyCar Series. AP Read More MotoGP icon Valentino Rossi returns to competitive motorsport ‘It did not fail’: W Series enters administration Raul Torras Martinez: Spanish rider dies at Isle of Man TT MotoGP icon Valentino Rossi returns to competitive motorsport ‘It did not fail’: W Series enters administration Raul Torras Martinez: Spanish rider dies at Isle of Man TT
2023-11-28 03:56
SpaceX Readies Second Wi-Fi 6 Router for Starlink
SpaceX Readies Second Wi-Fi 6 Router for Starlink
SpaceX has received regulatory approval for a second Wi-Fi 6 router for Starlink, four months
2023-11-28 03:52
Adobe Premiere Elements Review
Adobe Premiere Elements Review
Adobe considers the audience for its consumer-targeted video editing software to be what it calls
2023-11-28 03:51
A Record Number of US Travelers Fly After Thanksgiving
A Record Number of US Travelers Fly After Thanksgiving
More than 2.9 million people traveled through airport security checkpoints Sunday, making it the busiest day ever for
2023-11-28 03:21
SpaceX May Be Giving Up on Offering Starlink to Aid Groups in Gaza Strip
SpaceX May Be Giving Up on Offering Starlink to Aid Groups in Gaza Strip
It looks like Elon Musk may be backing away from offering Starlink access to Palestinians
2023-11-28 02:57
Google will start deleting 'inactive' accounts in December. Here's what you need to know
Google will start deleting 'inactive' accounts in December. Here's what you need to know
Have a Google account you haven’t used in a while
2023-11-28 02:47
The Best Cyber Monday Deals on Printers: Canon, Epson, HP, More
The Best Cyber Monday Deals on Printers: Canon, Epson, HP, More
Maybe it’s a boarding pass for an upcoming holiday flight. Maybe it’s making your own
2023-11-28 01:22
The Best Accounting Software for Small Businesses in 2023
The Best Accounting Software for Small Businesses in 2023
If you are a small business owner, you know the last three years have been
2023-11-28 00:16
Google Drive Files Are Disappearing and Nobody Knows Why
Google Drive Files Are Disappearing and Nobody Knows Why
Some Google Drive users are reporting all their files uploaded since May have disappeared from
2023-11-27 23:56
Chef to Pharrell and Dior Now Opening in Dubai at Luxury Hotel
Chef to Pharrell and Dior Now Opening in Dubai at Luxury Hotel
Hi it’s Lisa Fleisher, your luxury correspondent in the Middle East. I decided last-minute to book a flight
2023-11-27 21:18
Cyber Monday marks the year's biggest online shopping day, and one more chance to save on gifts
Cyber Monday marks the year's biggest online shopping day, and one more chance to save on gifts
Consumers are scouring the internet for online deals as they begin to cap off the five-day post-Thanksgiving shopping bonanza with Cyber Monday
2023-11-27 21:15
New incentives could boost satisfaction with in-person work, but few employers are making changes
New incentives could boost satisfaction with in-person work, but few employers are making changes
The COVID-19 pandemic upended the work habits of people around the world, with millions working from home, at least for part of their week
2023-11-27 19:53
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