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Two-time IndyCar Champion Alex Palou Admits Breach Of Contract With McLaren Racing

Alex Palou admits in court documents his breach of contract. (Photo: NBC Sports)
Alex Palou admits in court documents his breach of contract. (Photo: NBC Sports)

Through court documents, Alex Palou admits breach of contract with McLaren Racing.

Replacement for Alex Palou due to recent issues is also announced. (Photo: PlanetF1)

A replacement for Alex Palou due to recent issues has also been announced. (Photo: PlanetF1)

Alex Palou’s Breach Of Contract

Two-time IndyCar champion Alex Palou has admitted in court documents that he breached his contract with McLaren Racing when he decided to stay at Chip Ganassi Racing instead. McLaren had filed a lawsuit seeking to recoup at least $23 million in losses caused by Alex Palou’s change of plans.

In his response, Alex Palou explained that he lost trust in McLaren’s support for his racing ambitions in the Formula One Series and chose to continue racing in the IndyCar Series with CGR. Alex Palou acknowledges renouncing his contractual obligations with McLaren, and the issue now revolves around determining the damages he is liable to pay.

The dispute between the two teams began when Alex Palou disputed Ganassi’s claim to his contract for the 2023 season. Mediation led to an agreement whereby Alex Palou would drive for Ganassi in 2023 while serving as McLaren’s reserve F1 driver when it didn’t interfere with IndyCar.

According to a published article by AP News, Alex Palou later informed McLaren that he had extended his contract with Ganassi for three more years. McLaren is seeking damages related to future sponsorship, the costs of using Alex Palou as a reserve F1 driver, Palou’s development for F1, and an advance payment on his 2024 salary.

Alex Palou’s Replacement

In a published article by ESPN, Pato OWard has been named as Palou’s replacement as McLaren’s F1 reserve driver.

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