Alex Palou and Chip Ganassi have reached a settlement with McLaren over the Spanish driver’s contract breach in 2023.
The fight between the parties was drawn out and resulted in a legal battle in the UK courts system.
In January, the verdict was handed down that Palou was at fault and owed McLaren nearly $12 million for his breach of contract.
In the lead-up to the opening round of the 2026 IndyCar season, Palou released a statement acknowledging his mistake and confirming the matter is now settled.
“Over the past few months, I’ve had time to reflect on what has been an incredibly challenging period, and I want to address it directly,” said Palou.
“First, I want to acknowledge both Zak Brown and Chip Ganassi. Both were put in a difficult position, and I regret being in the middle of that. Also, in January, a UK judge ruled in McLaren Racing’s favor regarding my IndyCar contractual breach. I respect that decision.
“I also recognize that the way events unfolded in the summer of 2023 could have been handled differently. While little of this is publicly known, I found myself pulled in various direction and had the wrong people around me back then who I believe did not have my best interests at heart.
“I believe back then that I was provided with the wrong advice or no advice at all. In hindsight, had I reached out to Zak directly, perhaps things may have played out differently.
“McLaren and Zak supported me in many ways, they fulfilled every obligation, went above and beyond and delivered on everything they said in their contracts. I was never misled by McLaren and I very much respect their organization.
“I also want to thank Chip, my teammates, and everyone at Chip Ganassi Racing for their dedication and support throughout this process. I’ve learned a great deal from this experience.
“I’m delighted this matter has now settled and I wish to thank all of those involved in reaching an amicable conclusion. My focus now is fully on moving ahead where two great organizations that I respect deeply will compete solely on the racetrack.”
Ganassi statement
Chip Ganassi has been supportive of Palou throughout the entire battle, and has often publicly been at odds with the way McLaren CEO Zak Brown conducts business.
He confirmed through his own statement that the matter is now settled and he hopes his star driver can learn from his past actions.
“I am happy to confirm that we have reached a final settlement with McLaren Racing following a UK judge ruling in January,” said Ganassi in the statement.
“I cannot condone what happened and I’m glad that the matter is over. With the benefit of hindsight, I hope Alex has learned it’s important to keep good people around him, which he now does, so the events of 2023 are never repeated.
“I want to thank Zak and McLaren Racing for now giving us a chance to leave this matter behind us and fully focus on the exciting IndyCar season ahead.”
Palou begins defense of his fourth IndyCar championship this weekend on the streets of St. Petersburg.
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