IndyCar News: Brown denies 'stringing along' Alex Palou in court

(GMM) McLaren CEO Zak Brown (pictured) has denied claims he misled dominant IndyCar champion Alex Palou with suggestions of a future Formula 1 seat in order to secure his signature for McLaren’s American program.

Fresh from celebrating the back-to-back constructors’ crown in Singapore, Brown appeared this week at London’s High Court as part of McLaren’s $20 million damages case against Palou, who walked away from an agreed deal to stay with rival outfit Chip Ganassi Racing.

Under cross-examination, Brown insisted he “never strung along” the Spanish driver, saying his assumption was that Palou “believed McLaren IndyCar would be a top team.”

Alex Palou at Sebring, FL – during the 2024 Test at Sebring International Raceway in Sebring, Florida. (Photo by Joe Skibinski | IMS Photo)

The Financial Times reports that McLaren accuses Palou of a “deliberate breach of contract” which caused “deep consternation among McLaren’s sponsors.”

Palou, however, has already admitted the breach and is disputing the amount of damages, calling McLaren’s claim “vastly inflated.”

Palou’s lawyer Nick De Marco KC told the court that his client was originally drawn to McLaren by “the prospect of racing in F1,” but said that when it became clear the opportunity was limited to IndyCar, “he ultimately preferred to remain with Ganassi.”

CEO Brown, who earned about $50 million last year, has overseen McLaren’s recent F1 resurgence, with Oscar Piastri and Lando Norris also leading the 2025 drivers’ championship.

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Brown clarified that Plan B positioned Palou as a reserve driver in case of injury, while Plan C would have secured him a full-time seat for 2024 if the current championship leader, Oscar Piastri, underperformed.

Brown described Palou’s actions as shocking, emphasizing the significant financial and reputational damage inflicted on the team. Brown explained that NTT began negotiations with McLaren’s IndyCar team after learning Palou had signed with them. However, when the IndyCar champion backed out, the contract with the IT firm required costly renegotiation, as McLaren struggled to find a comparable replacement driver.

McLaren is now seeking over $7.2 million due to the renegotiation and an additional $6.8 million in lost sponsorship revenue.

“NTT entered negotiations because they knew Alex was joining us, and their offer was based on his involvement,” Brown told a London court. “A less experienced or less talented driver would have lowered the agreed amount, or NTT might not have partnered with us at all.”

Brown noted that the team’s focus on track performance and securing new sponsors was disrupted by the uncertainty over their driver lineup. He also revealed that Palou never contacted him about his decision, which could have allowed better management of sponsor relationships. “Alex effectively tossed a grenade into the room and walked away, leaving me to handle the fallout with our sponsors,” Brown said.