The court case centred on McLaren Racing and 2025 IndyCar Champion Alex Palou kicked off this week, with the Spaniard and CEO Zak Brown taking to the stand in a bitter legal dispute.
Palou looked to set to feature in the Woking-based squad‘s long-term plans, signing a deal to drive its IndyCar team in 2023, doubling up as an F1 test and reserve driver.
Disputed by Chip Ganassi Racing, an agreement was reached for him to depart at the end of the 2023 season, but free to undertake his F1 duties while he saw out his contract.
Instead, Palou reneged on the deal, pulling out and choosing to remain at Chip Ganassi, dominating the 2025 season and seemingly closing the door on any F1 future.
McLaren reacted by filing a lawsuit of $20 million against the Spaniard for lost commercial revenue and reputational damage, in a saga that is reaching its climax.
Addressing the UK’s Commercial Court, Palou outlined conversations with McLaren Racing CEO Zak Brown during his Testing of Previous Cars test [TPC], where an F1 seat was indicated as the end goal.
“During the tests with McLaren, Zak told me he believed we could make it happen and that he would give me all the preparation I needed to get into Formula 1,” Palou stated.
“At the time, I thought he was sincere.”
However, midway through 2022, McLaren announced the arrival of Oscar Piastri for 2023, in one of F1’s most infamous driver market transfers, an arrival that impacted Palou.
Detailing further conversations with Brown, Palou indicated disagreement within McLaren over the signing, the 2025 IndyCar champion acutely aware of its implications.
“I had dinner with Zak at Beaverbrook near the McLaren Technology Centre,” he explained in his testimony.
“Zak told me it wasn’t his decision to sign Oscar. That was a decision made by the Team Principal, Andreas Seidl.
“He said that Piastri’s performance would be compared to mine in 2024, but that it wouldn’t affect my chances of getting into Formula 1. Still, I knew everything had changed.”
A robust defence from McLaren and lost opportunities for IndyCar star
Brown refutes any suggestions that he misled Palou, stating he never revealed that he was under consideration as a driver for 2024 or beyond.
“I explained to him what opportunities there might be in Formula 1. I never told him he was being considered.
Cross examined by Palou’s lawyer, Nick De Marco, he denied that he ‘strung along’ his client under false pretences during his team at McLaren.
“I never strung Alex along. There was only one option for Formula 1 entry, and I made that clear.”
Palou during his testimony, hinted that Brown may have responsible for an opportunity with AlphaTauri (now Racing Bulls) not materialising.
A direct conversation between Brown and Helmut Marko, Head of Red Bull’s Young Driver Programme, appeared to have ended his chances overnight, with no reason given.
“There were rumours in the media that AlphaTauri was looking for a Formula 1 driver, and my name came up,” Palou said.
“In June 2023, I had a telephone conversation with Helmut Marko. He was open to the idea and asked about the conditions for my release from McLaren.”
“Zak then called Helmut directly, and apparently Helmut said afterwards that he was no longer interested.
“I don’t know what was said in that conversation, but it certainly didn’t help because suddenly Helmut was no longer interested.”
McLaren maintained in court that Alex Palou’s actions were “unlawful” and had incurred signficant commercial and reputational damages, as outlined by McLaren’s lawyer Paul Goulding KC.
“His unlawful actions caused great uncertainty among McLaren’s sponsors, whose expectations were dashed overnight,” Goulding told the court.
“McLaren had to find a replacement driver at short notice, but no driver of Palou’s calibre was available. Sponsors withheld payments following Palou’s U-turn and made it clear that contracts would have to be renegotiated.”
Mr De Marco hit back that this claim was, ‘grossly exaggerated”, labelling it as a “a shameless attempt to squeeze Mr Palou”, as the case continues into next week.
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