The lengthy court battle between McLaren and Alex Palou is nearing a conclusion as both sides presented closing arguments in the UK court system on Wednesday.
The lawsuit centers around Palou backing out of a contract it had with McLaren to drive for the team for the 2024 IndyCar season, instead choosing to stay with Chip Ganassi Racing.
McLaren aims to reclaim $20.7 million from Palou to recoup money it says was lost in sponsorship, driver salaries and performance earnings due to the top driver breaking his contract.
Zak Brown, as McLaren CEO, has been personally involved in the proceedings and has appeared in court regularly to help make his case.
Palou maintains that his reversal was not a breach of contract due to misleading claims made by Brown and the team regarding the agreement.
In details published by the Associated Press, McLaren continues to argue that NTT Data and General Motors reduced their payouts to the team as result of Palou’s actions.
The companies made the change because the team was no longer fielding a driver with as much talent as Palou, and McLaren argues those damages should be covered by Palou himself.
The team even revealed that it made an offer to Marcus Ericsson in an attempt placate sponsors that it was fielding a ‘top driver,’ but that deal fell through with Arrow McLaren eventually hiring four drivers for the #6 entry throughout the season.
Palou’s defense
Palou’s side of the argument centers around his belief that he was misled about potential opportunities to join Formula 1.
He was at the time highly keen on making a move into F1 if there was an opportunity, and that offer was teased to him in ways that overstated the chances of that move actually happening.
He also argues that his current pay is well below other IndyCar drivers, despite him being a four-time series champion, because he had to negotiate Chip Ganassi Racing to help pay for legal expenses regarding this lawsuit.
“There is no way I would have had the amount of money and expenses just to be here today,” said Palou.
“Although there is that indemnity, as a driver, I know I am not being paid the amount of other drivers. I am not in the top three of the highest-paid drivers and I am not going to be for the foreseeable future… for this indemnity.
“I am going to have to pay for it with my base salary in the future and I am already doing it.”
Palou’s lawyers also argue that the $20.7 million is above and beyond any reasonable losses attributed to this situation, should any liability be placed on Palou.
The trial in London’s High Court has been taking place over the past five weeks, and it is unknown when a final ruling will be made.
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