FLORIDA: Four-time IndyCar champion Alex Palou on Friday was ordered to pay McLaren Racing more than $12 million in the breach of contract suit the team filed when the Spaniard backed out of two different deals with the racing team.
The Friday ruling from London’s High Court came after a five-week trial last year. McLaren initially sought almost $30 million in damages, but that number was reduced to $20.7 million as the racing juggernaut sought to reclaim money allegedly lost in sponsorship, driver salaries and performance earnings.
“This is an entirely appropriate result for McLaren Racing. As the ruling shows, we clearly demonstrated that we fulfilled every single contractual obligation toward Alex and fully honored what had been agreed,” said McLaren Racing boss Zak Brown. “We thank the court for recognizing the very significant commercial impact and disruption our business suffered as a result of Alex’s breach of contract with the team.”
McLaren added it is still seeking interest and reimbursement of its legal expenses.
Palou was not ordered to pay anything related to Formula 1 losses McLaren said it suffered when Palou decided to remain with Chip Ganassi Racing rather than move to McLaren’s IndyCar team in 2024. All the damages awarded to McLaren were tied to losses the IndyCar team suffered by Palou’s change of mind.
“The court has dismissed in their entirety McLaren’s Formula 1 claims against me which once stood at almost $15 million,” Palou said in a statement. “The court’s decision shows the claims against me were completely overblown. It’s disappointing that so much time and cost was spent fighting these claims, some of which the Court found had no value, simply because I chose not to drive for McLaren after I learned they wouldn’t be able to give me an F1 drive.
“I’m disappointed that any damages have been awarded to McLaren. They have not suffered any loss because of what they have gained from the driver who replaced me. I am considering my options with my advisers and have no further comments to make at this stage.”
Palou has won three consecutive IndyCar titles and the Indianapolis 500 since this saga began midway through the 2022 season. He has four IndyCar titles in the last five seasons.
The bulk of the damages awarded to McLaren were tied to loss of sponsorship. Palou was ordered to pay $5.3 million to cover the losses in the team’s agreement with NTT Data, $2.5 million in “other IndyCar sponsorship revenue” and $2 million in performance-based revenue.
IndyCar team owner Chip Ganassi said Palou has his backing.
“Alex has our full support, now and always. We know the character of our driver and the strength of our team, and nothing changes that,” Ganassi said. “While we respect the legal process, our focus is exactly where it should be: on racing, on winning, and on doing what this organization has always done best, competing at the highest level.
“We’re locked in on chasing another championship and defending our 2025 Indianapolis 500 victory. That’s where our energy is, and that’s where Alex’s focus is, on the track, doing what he does best: winning.”
McLaren has won the last two constructor championships in F1 and Lando Norris last season won the driver championship.
Palou first signed with McLaren in 2022 to drive for its IndyCar team in 2023, but Ganassi pushed back and exercised an option on Palou for the 2023 season. The matter was decided through mediation, with McLaren covering Palou’s legal costs. Palou could not join McLaren until 2024 but was permitted to be the reserve and test driver for the F1 team in 2023.
When McLaren signed Oscar Piastri for its F1 team, and Palou’s performance with Ganassi in IndyCar was so dominant, the driver decided he did not want to move to McLaren’s IndyCar team and reneged on his contract.
Palou argued his contracts with McLaren were “based on lies,” and he’d never have a chance to race in F1. His counsel also accused Brown of destroying evidence by deleting WhatsApp messages related to the case.
McLaren contended it lost revenue when Palou backed out ahead of the 2024 season and the team had to scramble to find another driver. McLaren wanted Indianapolis 500 winner Marcus Ericsson, who had already committed to Andretti Global, so it instead used four different drivers that season.
Because none were as accomplished as Palou, McLaren argued both NTT Data and General Motors reduced their payouts to the team because McLaren did not field a driver of the caliber it had promised.
Alex Palou ordered to pay McLaren Racing $12m in breach of contract suit
https://arab.news/pdsj8
Alex Palou ordered to pay McLaren Racing $12m in breach of contract suit
- The Friday ruling from London’s High Court came after a five-week trial last year
- McLaren initially sought almost $30 million in damages
Aston Martin says its car risks giving drivers ‘nerve damage’ and can’t finish F1 season-opener
- Aston Martin has predicted it is unlikely to finish Formula 1’s season-opening Australian Grand Prix without its drivers risking suffering permanent nerve damage
MELBOURNE: Aston Martin has predicted it is unlikely to finish Formula 1’s season-opening Australian Grand Prix on Sunday without its drivers risking suffering permanent nerve damage.
Adrian Newey, the F1 car design great who’s heading into his first race as Aston Martin’s team principal, said Thursday the team’s Honda power unit causes vibrations which could damage the hands of drivers Fernando Alonso and Lance Stroll. Neither will likely be able to tolerate even half of the 58-lap race distance, Newey added.
Aston Martin had a poor preseason, often slower even than new team Cadillac and it logged the fewest laps of all 11 teams.
“That vibration (transmitted from Honda’s power unit) into the chassis is causing a few reliability problems,” said Newey.
“Mirrors falling off the air, tail lights falling off, that sort of thing, which we are having to address. But, the much more significant problem with that is that that vibration is transmitted ultimately into the driver’s fingers.
“So Fernando is of the feeling that he can’t do more than 25 laps consecutively before he will risk permanent nerve damage into his hands. Lance is of the opinion that he can’t do more than 15 laps before that threshold.
“We are going to have to be very heavily restricted on how many laps we do in the race until we get on top of the source of the vibration — and to improve the vibration at source.”
Despite the long list of issues, Newey says the AMR26 car has tremendous potential as F1 starts a new era of regulations.
He argued the chassis is F1’s fifth-best behind the expected top-teams Mercedes, Ferrari, McLaren and Red Bull and that, following an aggressive development program, has the potential to run at the front at some point in 2026.
Alonso, though, is keeping the faith until Friday practice in Melbourne, where he believes fixes on the car might provide a sunnier outlook.
“For us, it’s just vibrating everything,” the two-time F1 champion said.
“But it’s not only for us. The car is struggling a little bit, so that’s why we have some issues, some reliability problems that made our days slightly short.
“Since (pre-season testing in) Bahrain, there were a couple of tests done and some of the solutions are implemented on the car now, so (I’m) curious to see what (happens) tomorrow (and) if we can improve.”
Its disappointing performance has been variously attributed to a compressed design time due to late arrival; Honda’s need to rebuild its research and development capabilities after leaving Red Bull, the challenge of producing a new in-house gearbox, and the team running a so-far unproven fuels partner in Aramco.
But it’s the side effects that will likely sideline its cars early in Sunday’s race at Albert Park.
