McLaren and Chip Ganassi Reach Settlement with Alex Palou After $12 million Court Ruling

McLaren reached a settlement with Chip Ganassi Racing, ending the legal battle over driver Alex Palou’s contract dispute. After a London High Court ordered Palou to pay over $12 million, the deal lets him stay with Ganassi, serve as a McLaren F1 test driver and join its IndyCar program in 2024.

Why it matters:

The dispute cost McLaren an estimated $20 million in claimed damages, strained relations between the F1 and IndyCar outfits and threatened to distract both teams from the 2024 IndyCar campaign. Settling clears the deck for McLaren’s dual‑program strategy and lets Ganassi focus on defending Palou’s championship lead.

The details:

• Palou was ordered to pay over $12 million after a five‑week trial; McLaren originally sought about $20 million.
• The deal lets Palou stay at Ganassi, serve as a McLaren F1 test driver, and join its IndyCar program in 2024.
• Palou claimed Zak Brown promised a 2024 F1 seat; Brown called the allegation “ludicrous” and said no such discussion took place.
• McLaren CEO Zak Brown said the settlement lets the team “return to battling on track” and focus on an “exciting IndyCar season.”
• Ganassi said the resolution shows Palou learned to keep trusted advisers close.

What's next:

Palou will start his defence of a fourth IndyCar title at the St. Peterson opener. With the settlement in place, McLaren and Ganassi can focus solely on performance, leaving litigation behind. The deal clears the way for a competitive season for both teams.