Formula 1 team McLaren have been awarded over $12m after a trial involving former driver Alex Palou.
Palou backed out of a multi-year deal with McLaren, with the Spaniard insisting he did so because the Woking outfit failed to put him on a path of transition to Formula 1. He instead re-signed with Chip Ganassi Racing.
McLaren Racing, winners of the 2025 Formula 1 constructors’ championship, were initially chasing $30m in 2023 ahead of mediation in 2024 but have been awarded less than a third of that by the judge.
Lawyers have said that the trial could set a precedent for future contractual issues within Formula 1.
A statement read: “Today a UK judge ruled that McLaren Racing has been awarded damages of well over $12 million to compensate the business for the commercial loss and disruption suffered following IndyCar driver Alex Palou’s breach of contract with the team.
McLaren win in trial
“In addition to the damages award, McLaren Racing will be seeking interest and reimbursement of its legal expenses at a further hearing. As the judgment records, Alex Palou had the backing of Chip Ganassi Racing in attempting to deny McLaren Racing’s claims.
McLaren Racing chief executive Zak Brown said: “This is an entirely appropriate result for McLaren Racing. As the ruling shows, we clearly demonstrated that we fulfilled every single contractual obligation towards Alex and fully honoured what had been agreed.
“We thank the court for recognising the very significant commercial impact and disruption our business suffered as a result of Alex’s breach of contract with the team.”
The judge awarded McLaren $5.4m for the 2024-2026 seasons and a further $950,000 for 2027.
Other sums were awarded to the racing team based on performance revenue, salary and owed payments. A further sum relating to sponsorship will be determined at a later date.