Imagine IndyCar’s finest battling with Formula One’s star group. Bound to be an ugly and long fight right? That is the case between 2024 NTT IndyCar Series champion Alex Palou and 2024 F1 Constructor’s Champion McLaren Racing. The latter had wanted to join hands with the former over two years ago. However, Palou took a U-turn and broke his promises way later in the deal. That landed him in a soup which continues till today.

While preparations are in full swing for the 24 Hours of Daytona, Alex Palou is ready to take center stage. However, as he prepares for the final part of this prestigious race with Meyer Shank Racing, he also faces his legal battle. That involves a hefty penalty purse and a string of broken obligations.

Alex Palou dons his legal suit alongside his firesuit

Last year, the Spaniard speedster was on fire at the 24 Hours of Daytona. Alex Palou lapped the 3.56-mile road course in 1m35.705s, the fastest time set – under Chip Ganassi Racing. Palou’s bond with this team also led to three IndyCar Series championships, the latest one coming in 2024. In fact, their ties were strong enough for Palou to reverse a promise made to another team. McLaren Racing signed Palou in July 2022 for a 2024 IndyCar seat and a reserve driver role in F1. He took part in practice sessions, tested for the F1 team both on and off the simulator, and even drove for the team at the 2023 Miami Grand Prix.

However, in August 2023, Alex Palou‘s attorney informed Mclaren CEO Zak Brown that Palou would no longer join his team. Instead, he decided to stay at Chip Ganassi Racing, having extended his contract until 2026. McLaren responded by suing Palou with an almost $30 Million breach of contract case. This case is still in process, as Palou is booked for a courtroom hearing in London. Journalist Jenna Fryer updated on Twitter how it comes immediately after his Daytona plans. “Palou headed to London after Daytona for mediation in McLaren’s $30 million breach of contract suit.”

The damages that McLaren is seeking involve many aspects. These include the costs incurred in making Alex Palou the reserve driver and how much McLaren spent in preparing him for F1. The team also seeks a return of the $400,000 advance that Palou received for his 2024 salary. Official partner agreements with sponsors NTT Data and General Motors also caused a loss of nearly $15.5 Million. According to Palou, his decision to retract was because he “lost trust and confidence that [McLaren] genuinely intended to support his ambition to race in the Formula One Series.”

Despite his breach of contract, Alex Palou continued to dazzle. Meanwhile, McLaren Racing genuinely struggled.

Shining despite causing harm

After Alex Palou turned back on his agreement, McLaren faced a slew of challenges. It was left without a driver for its IndyCar outfit very late in the planning phase for 2024. The team signed David Malukas, but the driver broke his wrist in a cycling accident before the season began. Then they used two more drivers throughout the season – Théo Pourchaire and Nolan Siegel. Misery piled up for the Woking-based outfit when Palou out-performed its drivers. He was ranked as the second-best driver in 2023 for F1 while McLaren’s star driver Lando Norris came third. This rubbed salt into the wounds that Palou caused McLaren.

Besides, the driver is already a tremendous talent. Alex Palou will kick off his 6th season in the IndyCar Series, looking to defend his title. In mid-2024, people were speculating over what could stop him from becoming a three-time champion. That was because it had been two years since any driver outscored Alex Palou by 59 points for four IndyCar races. Palou became the first back-to-back champion in IndyCar since Dario Franchitti won three titles in a row from 2009 to 2011.

Evidently, Alex Palou is sure about his far-reaching ambitions. A strained relationship ultimately does not stand in his path – although an enormous cash penalty is involved.