New testimony in the ongoing lawsuit between IndyCar champion Alex Palou and McLaren F1 CEO Zak Brown revealed jarring allegations. The Indy500 winner claimed Brown made promises for Palou’s future in F1 with McLaren. The CEO denied ever making such agreements.
Moreover, this legal dispute brought out accusations from both parties. With Palou completely frustrated by McLaren’s apparent empty promises, the testimonies from Brown were their attempts at clearing up the confusion.
Why did McLaren sue Palou?
Alex Palou’s conflicts with Brown started in 2022, when he agreed to sign on with McLaren’s IndyCar team (Arrow McLaren) for the 2023 season. According to the Spaniard, this contract was supposed to guarantee him a definite seat in McLaren’s F1 team. Nevertheless, Palou’s current team, Chip Ganassi Racing, disputed the move by activating a clause in his contract. This allowed the team to keep him in 2023.
CGR took Palou to court, yet the two parties managed to settle their dispute. As the Spanish driver remained with his team, he went on to win multiple IndyCar championships. This decision upset McLaren, who decided to countersue Alex Palou for his backtracking. The lawsuit is currently underway, with McLaren’s CEO, Zak Brown, and Palou both sharing conflicting testimonies.
In terms of financial compensation, McLaren sued for $21 million. This sum encompasses lost sponsorships ($6.8 million), renegotiations with NTT Data ($7.2 million), other drivers’ promotions (1.3 million) and Palou’s sign-on bonus ($400,000).
Palou’s accusations and statements
This lawsuit between McLaren, Zak Brown and Alex Palou brought out previous alleged agreements. As the Spaniard stated in his testimony so far, he was disheartened after he found out Oscar Piastri was the one to sign on with the F1 team.
“I was very upset, worried and angry that McLaren had signed another rookie driver other than me,” Palou said in reference to Piastri’s controversial F1 debut in 2023. The Australian is currently leading the Formula 1 Drivers’ Championship in his third year with McLaren.
“On September 22, they [his management team] had a conversation with Zak [Brown]. And Zak had told them they needed someone who would be quick in 2023, […] but that this would not interfere with my chances to get into F1.”
On his side, Palou made it clear that he received reassurance from McLaren’s executives. Before even breaching the first agreement, the Spanish IndyCar driver was already set on a guarantee to join the Formula 1 ranks.
Why did Palou back away from the contract?
Before McLaren decided to countersue Alex Palou, the CEO, Zak Brown, apparently seemed “genuine” in his pursuit of the Spaniard. Palou never expected this outcome, although he believed Brown genuinely intended to help him secure an F1 seat. The IndyCar driver admitted he was only interested in the partnership with McLaren for a future chance at Formula 1:
“The only attraction was to go to F1. My ambition was because it is the biggest single-seater series in the world.
“When testing with McLaren […] Zak told me he believed we could make it happen. And that he would give me all the preparation I needed to get to F1. At the time, I thought he was genuine.”
Nevertheless, after the news of Piastri’s move from Alpine to McLaren, Palou was frustrated. Feeling hopeless and deceived, he spoke with Brown, who was confident that Palou’s chances remained the same. Yet, the contract agreement with the Australian was too much of a leap of faith for the IndyCar driver.
“Zak told me Piastri’s performance would be evaluated against mine for 2024. Zak said that, from his point of view, my chance of getting the F1 seat was not affected by Oscar.
“However, I knew everything had changed. From that point on, I started to be more willing to stay with CGR in the future.”
Zak Brown’s response
McLaren’s CEO Zak Brown denied any sort of accountability for the IndyCar driver’s hurt feelings. In a statement from his lawsuit testimony, Brown stated that he “never strung along” Alex Palou with the promise of a McLaren F1 seat.
“I never told him he would be under consideration for 2023 … there was some optionality to join F1,” explained the CEO.
In the court hearings so far, it was also revealed that Palou was in talks with Helmut Marko for the opportunity to race for Alpha Tauri in mid-2023. However, according to the Spaniard, Brown spoke with Marko. After learning the contractual complications, Red Bull decided that Palou’s ties with McLaren were too convoluted for them to continue their pursuit.
The most shocking confession so far in these lawsuit proceedings came from Alex Palou. The Indy500 champion declared that Brown denied any responsibility for Oscar Piastri’s move to McLaren.
“Zak [Brown] told me it was not his decision to hire Oscar [Piastri].”
