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McLaren Racing suing Alex Palou following decision not to honor '24 contract

Redacted copies of Palou's contract with CGR had a clause that he wasn't allowed to begin talks for a ride outside his current home until Sept. 1Kristin Enzor/USA TODAY NETWORK

McLaren Racing Limited and McLaren Indy, LLC (better known as the Arrow McLaren IndyCar team) have “jointly sued” Alex Palou and the Chip Ganassi Racing driver's racing entity, ALPA Racing USA, LLC, in separate lawsuits in the U.K. Commercial Court, according to Nathan Brown of the INDIANAPOLIS STAR. Both lawsuits were filed as “Part 7 Claims,” meaning they were made “for the process of claiming money from the defendants.” Brown noted the case was filed Wednesday, the same day McLaren Racing CEO Zak Brown “sent a letter to his team members” informing them that the likely 2023 IndyCar champion had “made clear to Brown and the IndyCar team's officials that he ‘does not intend to honor his contractual obligations’” that would have involved Palou racing alongside fellow drivers Pato O'Ward and Alexander Rossi at Arrow McLaren in 2024. In the letter, Brown stated the team already "paid (Palou) a significant first payment toward his 2024 season, in addition to the millions of dollars toward developing him in our Formula 1 testing program and in his reserve driver role with a potential drive in F1 in the future." Palou’s manager Roger Yasukawa “declined to comment on the lawsuits.” Brown noted the lawsuit comes a year after Chip Ganassi Racing sued Palou for, among other charges, “breach of contract for the driver's dealings with McLaren” while CGR asserted it “still had Palou under a valid contract” (INDIANAPOLIS STAR, 8/18).

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