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UK Court Orders Alex Palou to Pay McLaren Over $12 Million for Contract Breach

The High Court confined damages to IndyCar losses, with McLaren pursuing interest and legal fees.

Overview

  • Justice Simon Picken issued a detailed award exceeding $12 million, including $6.33 million tied to NTT, $2.05 million in performance revenue, $1.31 million in driver-salary effects, $500,000 from GM and at least $2 million in other sponsorship.
  • The judge dismissed McLaren’s Formula 1 claims in full, restricting compensation to the team’s Arrow McLaren IndyCar operation.
  • McLaren, which had reduced its original claim from nearly $30 million to about $20.7 million, said it will seek interest on the judgment and reimbursement of legal costs.
  • Palou called the ruling overblown in a statement, emphasized the complete F1 dismissal and said he is considering his options with advisors.
  • Chip Ganassi Racing reiterated full support for Palou and is covering his legal expenses as he remains with the team.