Alex Palou Ordered to Pay $12M to McLaren in England Court Ruling

A judge in england has awarded McLaren Racing more than $12 million in its lawsuit against INDYCAR star Alex Palou.

McLaren Racing originally asked for $31 million in damages after Palou backed out of a contract he signed in 2022 to drive for McLaren from 2024-2026. Palou, who signed a deal to remain at Chip Ganassi Racing in 2023, had already admitted a breach of contract. The six-week trial last fall in England only determined the damages.

Palou won the INDYCAR title in 2021, 2023, 2024 and 2025. His most recent title was the most dominant,as he won eight of the 17 races. He indicated in court documents that he opted to stay at Ganassi when a Formula 1 ride wasn’t guaranteed.

Alex Palou, who won his fourth INDYCAR title in 2025, was ordered to pay $12 million to McLaren for backing out of his contract.

“The court’s decision shows the claims against me were completely overblown,” Palou saeid in a statement. “It’s disappointing that so much time and cost was spent fighting these claims,some of which the Court found had no value,simply as I chose not to drive for McLaren after I learned they wouldn’t be able to give me an F1 drive.

“I’m disappointed wiht the outcome, but I’m glad it’s over and I can focus on racing.”